Revenue Contribution From Email Marketing Reaches Record Levels in 2017

Deep Email Personalization Can Drive Over 17 Percent More Revenue, New Study From The Relevancy Group and OneSpot Finds

Though Aware of its Effectiveness, Over Half of Email Marketers Still Not Serving Personalized Content or Product Recommendations

AUSTIN, Texas (June 21, 2017) – Revenue contribution from email marketing is the highest ever — up 18 percent to over 20 percent of overall revenue in 2017 as compared to 2016 — according to “The Return on Email Personalization,” a new study released today by market research firm The Relevancy Group in collaboration with OneSpot, a content personalization and intelligence platform. The survey of executive marketers examined how they are capitalizing on email as a meaningful component of their overall business, including the effectiveness of email personalization across industry sectors.

“Email marketing has never been more compelling, as technology and data-driven personalized content can now significantly bolster the effectiveness of email programs,” said Damian Borichevsky, senior vice president of Customer Success and Business Development for OneSpot. “This research underscores the imperative marketers have to deliver individually relevant content one-to-one, across channels including email, to ultimately drive a measurable return on that personalization. Our experience with Fortune 1000 companies focused on branded editorial content also reinforces these findings, and highlights that email marketing is undergoing a long overdue modernization.”

Revenue and Engagement Higher Among Marketers Using Personalized Content in Email Versus Non-Users
Among the study’s key findings is that marketers using deep personalization can drive as much as 17 percent more revenue through their email programs than counterparts that do not use deep personalization. What’s more, engagement rates for marketers leveraging personalized content and offers in their email programs are universally higher as compared to those not using personalization. Additional business results for marketers that personalize email as compared to those that do not include six percent higher conversion rates; five percent higher average order value and higher click through and open rates.

CPG, Professional Services and Technology Marketers Derive Greatest Percent of Overall Revenue from Email
As compared to other industries, email drives a greater percentage of overall revenue for Consumer Packaged Goods, Professional Services and Technology companies, while Financial Services companies also outperform the average with nearly one quarter of overall revenue directly attributed to email marketing initiatives. Comparing second quarter 2017 to the same period in the prior year, average open rates for email marketers increased to 27 percent from 25 percent, while click-through-rates increased to 16 percent from 14 percent.

Email Personalization in 2017 is Highly Effective, Still Underutilized
While 65 percent of marketers said dynamic content in email marketing was their most effective approach, researchers noted that the efficacy and response is because content is highly personalized — and is not a result of the dynamic nature of the content. Other findings regarding email personalization approaches include:

  • 60 percent report that leveraging real-time data in email is ‘effective’ or ‘highly effective
  • 58 percent report using machine learning is ‘effective’ or ‘highly effective
  • 59 percent report personalizing email content based on real-time data

Though the majority of email marketers know email personalization is effective, the study found that many struggle to capitalize on it.

  • 44 percent of executive marketers cited “lack of internal buy-in” as the biggest impediment to implementing personalization
  • Over half of marketers are still not making personalized product recommendations in their messages or using a recommendation engine to serve personalized content to newsletter subscribers
  • 78 percent leverage basic first name personalization
  • 26 percent report personalization efforts in email are not a priority in existing budgets

“Opportunities have never been greater to drive engaging, relevant, personalized experiences in email based on real user behavior, and marketers who are currently capitalizing are realizing measurable results,” said Nicholas Einstein, vice president of Research and Principal Analyst of The Relevancy Group. “The organizational headwinds that prevent many marketers from innovating to drive personalization still blow strong, but can be navigated when companies take steps to implement measurement, align stakeholders and partner with experts.”

“The Return on Email Personalization” study surveyed 350 marketing executives in April 2017. To read and download the study, visit https://www.onespot.com/EmailStudy.

About the Relevancy Group
Founded in 2010 and led by tenured industry analyst and marketer David Daniels, The Relevancy Group (TRG) provides market research and advisory services. We measure consumer and executive behaviors to develop strategies that optimize a return on marketing investments. Each analyst has a minimum 15 years of experience in digital marketing. TRG are trusted advisors to leading technology organizations and familiar brands. TRG is dedicated to educating the market on emerging trends and the imperative tactics needed to foster trust with customers in order to improve an organization’s relevance within the broader on and offline connected economy. TRG works with early stage companies and the world’s largest enterprises to deliver unique market research and services. For more information visit www.relevancygroup.com.

About OneSpot
OneSpot is a technology platform for personalizing content marketing across digital channels. The company’s machine learning based Content Sequencing® engine helps the world’s best brands use their content marketing to create one-to-one, personally relevant digital experiences across website, email and paid media. Fortune 2,000 customers including Nestlé, IBM, Whole Foods Market, L’Oréal and Delta Faucet rely on OneSpot to build strong content-based relationships, provide measurable audience and content insights, and drive quantifiable business results. Privately funded and based in Austin, Texas, OneSpot is a Forbes Top 100 Brand Publishing Solution, a three-time AlwaysOn Global 250 Winner and a three-time EContent 100 Winner. For more information visit www.onespot.com.

# # #

Media Contact
Finn Partners for OneSpot
Valerie Beesley
Phone: 646.202.9767
Email: onespotteam@finnpartners.com

Marissa leads marketing at OneSpot.