Email deteriorates as a marketing and sales channel

New quarterly EQ report from Monetate shows year-on-year decline in email referral traffic, revenue generation, customer conversion and website visits

Email continues to deteriorate as a marketing and sales vehicle and declined in terms of traffic and revenue generation over the past year.

According to the latest Ecommerce Quarterly report from Monetate, EQ3:2013: More bad news for email?, email referrer traffic represented 2.92 per cent of all website traffic during the quarter to 30 September, down from 4.03 per cent 12 months ago.

The report found revenue to leading ecommerce websites from email also dropped 17.7 per cent over the same period, representing 2.53 per cent of total revenue share by traffic source. In contrast, search made up 31.16 per cent, and social 0.8 per cent.

Search also outperformed email in terms of average order value by traffic source at $129.10 versus $100.48, respectively. Same-store visits from email were down nearly 20 per cent year-on-year, while the number of sessions from emails that included purchases fell 25.18 per cent.

Social meanwhile, chalked up an average order value of $81.44, but dropped 0.7 per cent year-on-year in terms of revenue share (0.29 per cent to 0.22 per cent in Q3,2013).

Latest conversion rates are another indication of email’s decline. Email represented 2.95 per cent of total conversion rates for the sites EQ reported on in Q3, down from 3.17 per cent in the same quarter last year. This is despite the fact that retailers sent 22.8 per cent more emails between Q2, 2012 and Q2, 2013, a recent Experian Marketing Services Quarterly Email Benchmark Study claimed.

“It’s clear that consumers are signalling a demand for greater relevancy and consistency from their inbox, and marketers who don’t heed this warning could find themselves fighting a serious uphill battle to retain some of their most loyal customers,” the EQ report authors stated.

7 email marketing tips to gain customers
How imagination and automation helped Navitas’ digital marketing agenda
Personalising email-based customer communication

Email’s decreasing popularity as an advertising channel was reflected in the [[artnid: 532070| IAB Online Advertising Expenditure Report]], produced by PwC, which found email display advertising continues to trend downwards. Expenditure fell to a record quarterly low of $2.1 million in the three months to 30 September, a 63 per cent drop year-on-year.

Read more: More marketing emails reaching Australian inboxes

What was also evident in the EQ report was mobile’s rising importance. Over the past year, tablet-based website visits have leapt from 8.45 per cent to 14.65 per cent, while smartphone website visits increase from 8.32 per cent to 10.06 per cent during the same period.

The EQ report is based on analysing a random sample of more than 600 million online shopping experiences using what the company calls ‘same store’ data across each calendar quarter.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Digital Transformation challenges for CMOs

New problems are rarely fixed by applying old thinking. In the last decade, a combination of circumstances has evolved that requires new thinking from marketers. This new thinking takes advantage of the digital environment and transforms business as we know it.

Mark Cameron

CEO, Working Three

Why innovation requires less certainty and more ambiguity

According to the Knowledge Doubling Theory, the sum total of human knowledge doubles every 12-13 months. With the full evolution of the Internet of Things, it will eventually double every 12 hours. Faced with such a sea of shifting data and knowledge, how can we make progress if we try to nail everything down to a certainty?

Matt Whale

Managing director, How To Impact

Customer journeys: The new differentiation battlefield

Improving customer experience is rapidly moving from a feel-good initiative to an urgent business priority, as many organisations realise they are under attack from their competitors to provide the optimal experience to customers.

Damian Kernahan

Founder and CEO, Proto Partners

Great points. When it comes to optimizing the app experience, making sure you collect rich usage data is important, but making sure you c...

Dustin Amrhein

Why app engagement must be personalised - Mobile strategy - CMO Australia

Read more

You can also use automation to help keep the contact database nice and tidy. For example, programs that check and fix database values (eg...

automatico

3 brands using marketing automation for more than just email

Read more

Digital marketing landscape is changing rapidly and you need someone who has hands on experience, keeps up with emerging trends and strik...

A.M. International

Predictions: 16 digital marketing trends for 2016

Read more

Its time consumers see their points as an financial asset which has value, and begin to manage them like money (with a plan and a desired...

Steve@iFLYflat

Virgin to offer customer loyalty program points as petrol currency

Read more

Love seeing the revenue gain from mapping the customer journey, not only for the business but for the client too! Very nice outside-in t...

magnipath

Customer journeys: The new differentiation battlefield - Customer insights - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in