Whether you are looking to increase online sales for your ecommerce site, or boost lead generation and engagement, email marketing campaigns are of the most effective digital marketing strategies.
ICN’s email marketing strategy brings a return of £36 for every £1 spent. Understanding the economics of email marketing is crucial for achieving this return on investment (ROI). With our team’s help to investing in and building organic email lists, you can grow your understanding of what makes a successful email marketing campaign.
This blog explores how buying email lists works, what to look for in email lists, and all the costs involved in email marketing.
For more on the design and planning of your email marketing campaigns, visit our previous blogs in the email marketing series: The Art of Email Marketing- Getting the Best Results, The Science of Email Marketing – Optimise your Campaigns.
Building and Buying Email Lists
There are two ways to obtain an email list for your email marketing campaign. You can either collate your own list organically by getting customers to sign up through an opt-in on your website or previous emails, or you can purchase an email list from a trusted provider. While the first option provides stronger leads, buying an email list allows you to reach out at scale.
How Does Buying Email Lists Work?
Buying email lists involves purchasing a collection of email addresses from a provider. These lists are typically segmented based on various criteria, such as demographics, interests, and purchase behaviour. The goal is to reach a targeted audience more efficiently than building an email list from scratch.
However, it’s essential to choose reputable providers to ensure the quality and relevance of the emails. ICN Media’s expert email marketing team can help guide you to make the right choices.
The process begins by identifying a trustworthy vendor that offers well-segmented lists tailored to your specific needs. When buying an email list, consider three key factors: quality, segmentation, and price.
Quality of Provider
Look for deliverability guarantees from the supplier. Some suppliers offer 100% deliverability rates, while others may offer as low as 85%. Also, check the provider’s credibility—ensure their database is regularly updated and sourced ethically.
Audience Segmentation
Ensure the provider can match your target market closely. Some providers have detailed databases that cover various audience subsections, while others may not.
Email List Price
This varies based on the quality and segmentation of the list. We will cover this in detail in the next section.
Once a list is purchased, it is integrated into your email marketing platform, allowing you to launch campaigns targeting potential customers who are more likely to be interested in your products or services. However, it’s crucial to understand the ethical considerations and legal requirements, such as GDPR and CAN-SPAM Act, to avoid potential penalties and maintain brand reputation.
How Much Should an Email Address Cost?
The cost of purchasing email addresses can vary widely based on several factors, including the quality of the list, segmentation, and the provider’s reputation. On average, a single email address ranges from around 25p-35p. High-quality lists that guarantee better engagement rates may cost more, while cheaper lists might offer lower quality and effectiveness. Price reductions per email are often available when lists are purchased at scale.
When evaluating the cost, consider the potential ROI. A higher initial investment in a quality list can lead to better engagement rates and higher conversion rates, ultimately providing a better ROI. Conversely, lower-cost lists may save money upfront but could result in lower engagement and higher bounce rates, which can negatively impact your sender reputation and overall email campaign performance.
ICN Media’s Competitive Offer
ICN Media understands the importance of cost-effective marketing solutions.
Therefore, we offer our own email database for half the price of an average email address. While the industry average is 25p per email, ICN Media charges only 12p per email address. Our carefully curated email database ensures high engagement rates and deliverability. By choosing ICN Media, you can be confident in the quality and relevance of the email addresses you are purchasing.
Other Associated Email Marketing Costs
Beyond buying an email list, several other costs are crucial to running a successful email marketing campaign.
Email marketing software costs
Popular platforms like Mailchimp and Brevo offer a range of plans, from free versions with limited features to high-end subscriptions exceeding £100 per month. For beginners, plans typically range from £10 to £20 per month, depending on the features needed for your campaign.
Outsourcing your email marketing to an agency or freelancer
We recommend using an agency like ICN that offers expertise and cost-effective strategies. Agencies or freelancers may charge hourly rates, project-based fees, or a monthly retainer, all of which include a premium for their specialised knowledge.
Email domain warming
This is an essential, but often overlooked cost to consider. Warming up your email domain helps prevent emails from being blacklisted when sending campaigns at scale. This process involves using specialised software, which follows a similar pricing structure to email marketing platforms-ranging from free plans to more expensive options as your needs grow. Although this is a pre-campaign cost, it’s critical for ensuring successful email deliverability.
Why Are the Economics of Email Marketing Campaigns So Important?
Understanding the economics of email marketing is essential for any business looking to optimise their digital marketing efforts. By carefully selecting email lists and employing effective strategies, your email marketing platform can achieve significant ROI.
ICN Media offers a cost-effective solution with our high-quality email database at just 12p per email address, helping you reach your marketing goals efficiently and affordably.
Are you ready to take advantage of our expert email marketing and other digital services? You can fill in our ‘Work with Us’ form, or contact the ICN team at +44 (0)115 8244 448 or gb@icn-apps.com.
Blog by ICN’s Business Analyst Ryan Lever
