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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Are you sure they wont start a platform that the cheese is white, pretty sure that is racist

Hite

New brand name for Coon Cheese revealed

Read more

Real digital transformation requires reshaping the way the business create value for customers. Achieving this requires that organization...

ravi H

10 lessons Telstra has learnt through its T22 transformation

Read more

thanks

Lillian Juliet

How Winedirect has lifted customer recency, frequency and value with a digital overhaul

Read more

Having an effective Point of Sale system implemented in your retail store can streamline the transactions and data management activities....

Sheetal Kamble

​Jurlique’s move to mobile POS set to enhance customer experience

Read more

I too am regularly surprised at how little care a large swathe of consumers take over the sharing and use of their personal data. As a m...

Catherine Stenson

Have customers really changed? - Marketing edge - CMO Australia

Read more

Blog Posts

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

You’re doing it wrong: Emotion doesn’t mean emotional

If you’ve been around advertising long enough, you’ve probably seen (or written) a slide which says: “They won’t remember what you say, they’ll remember how you made them feel.” But it’s wrong. Our understanding of how emotion is used in advertising has been ill informed and poorly applied.

Zac Martin

Senior planner, Ogilvy Melbourne

Why does brand execution often kill creativity?

The launch of a new brand, or indeed a rebrand, is a transformation to be greeted with fanfare. So why is it that once the brand has launched, the brand execution phase can also be the moment at which you kill its creativity?

Rich Curtis

CEO, FutureBrand A/NZ

Sign in