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What is email marketing and how are platforms helping brands succeed?

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What is email marketing and how are platforms helping brands succeed?

Despite being so well-established, email marketing continues to attract more investment. Global spending on email software is expected to climb from $4.5 billion in 2020 to $14.9 billion in 2027, according to Global Industry Analysts’ predictions. That represents a compound annual growth rate of 13.7% over that period.

Email growth continues to chug along because it delivers consistent and impressive results. For every dollar marketers spend on email marketing, they generate $36 in revenue, a Litmus survey of 2,000 email marketers found in 2020. (The company didn’t have ROI numbers for 2021 due to the uniqueness of the year.)

Depending on what industry you’re in, your company’s ROI could be even higher. Agencies in marketing, PR and advertising see a return of $42 for every $1 they spend on email, and businesses in retail, e-commerce and consumer goods are rewarded with $45 in revenue for each dollar spent.

email marketing roi by industry

The centrality of data and the need for updated technology

Email may have been around since the dawn of the internet, but the space doesn’t stand still. Email marketing, and the technology that enables it, have evolved to deal with challenges like spam and deliverability and also to take advantage of opportunities, such as the ever-increasing sophistication of data usage for hyper-personalization.

When MarTech surveyed marketers for the 2021 MarTech Replacement Survey, they said technologies for email distribution and for marketing automation (a chief component of which is email), were the two top martech categories they had replaced over the previous 18 months.

The most common reason given for replacing technologies was to take advantage of new and better features in a different solution. And the capabilities that took center stage involved data centralization and other data capabilities.


What is email marketing and how are platforms helping brandsWhat is email marketing and how are platforms helping brands

Email marketing helps organizations acquire and retain customers, build businesses and make more money. Explore the platforms essential to email marketing in the latest edition of this MarTech Intelligence Report.

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The latest generation of email technology

When it comes to technology, maturity can be a disadvantage. New businesses can more easily leverage the latest capabilities of software development, while established firms may be saddled with legacy technologies and architectures.

Of course, technology players often introduce new features – some at a higher rate than others. But doing that on top of an aging infrastructure, while also keeping things running for an existing customer base, can be challenging.

The landscape of email marketing players comprises companies that started in the 1990s as well as those launched as recently as 2018.

The biggest recent change in the global environment, the COVID-19 pandemic, increased the importance of digital communications in general and email in particular. Studies by multiple email marketing providers indicate the overall volume of emails sent by marketers rose during the pandemic, as compared with before.

The personalization imperative amid data pressures

Marketers are trying to stand out in a crowded inbox by getting to know their customers and personalizing more messages to achieve greater relevance. But few marketers have the data they need to inform decision-making, a Capgemini survey found.

Many developments are changing the data landscape, especially in data collection. For example, in an effort to safeguard its customers’ privacy, Apple in mid-2021 announced features in iOS, Mac OS and Watch OS that limit the data available to marketers.

The main impact of these changes on email marketers is the decline of the open rate as a meaningful metric. Because of the way emails are cached under Apple’s Mail Privacy Protection, emails appear to be opened when they actually have not been, skewing the results.

As a consequence, email marketing platform vendors are educating their customers and redesigning interfaces to deemphasize the open rate metric. Some have also been developing new reports and metrics to help marketers as they optimize their messaging.


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Enterprise email marketing platform capabilities

Email marketing platforms usually offer features for email creation and sending, but consolidation and integrations have added to what one might have once expected. Common capabilities of these platforms include:

  • Message design and creation
  • Workflow automation and collaboration
  • Message previewing
  • Email sending
  • Deliverability management
  • Data management
  • Ecommerce capabilities
  • Analytics and reporting
  • Third-party integrations
  • Automation and landing pages

Some providers may offer more advanced capabilities, such as:

  • More full-featured customer data platform functionality
  • Artificial intelligence and machine learning capabilities leveraged through different parts of the platform

Here’s a breakdown of the top email marketing platform capabilities to look for that can help marketers succeed in their jobs.

Message design and creation

Providers typically offer a library of templates designed to simplify the process of message design and creation. The sophistication of these templates and the interface for using them differ from provider to provider, and most offer the capability for building your own templates from scratch.

These builders usually feature either a drag-and-drop interface or a code-centric option using HTML or MJML, an open-source email-specific markup language created by Mailjet. Many providers let marketers choose from these interfaces and some incorporate technologies that enable interactivity such as AMP for email or CSS.

Workflow automation and collaboration

Some of these standalone designer tools have won customers by developing features that allow users to smooth their workflows – especially where it comes to working within a team or coordinating between a brand and its agency.

Many of the larger platforms also offer capabilities along these lines. For example, solutions oriented toward franchise businesses let licensors provide assets, templates and such to their franchisees to guide and support their local efforts.

Message previewing

Though previewing goes hand in hand with message creation, we’re discussing it separately because there’s so much specialization involved in this part of the process. One of email’s biggest challenges is that recipients view emails on a wide variety of platforms. For each of the platforms that run email software – mobile phones, browser-based inbox providers and desktop clients – there are multiple brands and possible interfaces.

This means the ability to preview how messages look in all of these types of inboxes is an important feature to look for in an email marketing platform.

Email sending

The majority of email platform providers send emails, but their technologies – both software and hardware – and approaches for doing so can differ. This has the most significant impact on marketers sending large volumes of emails or doing sophisticated personalization.

More full-featured vendors may offer capabilities for managing and conducting SMS communications, as well, which have grown in importance in the COVID era, given their role in things like curbside delivery and other time-sensitive messaging.

Deliverability management

Email marketing platform vendors typically do a great deal to ensure the delivery of the messages they send. For example, tools that marketers use to preview emails can also warn them if the content of the email is likely to trigger spam filters so they can make changes before they send it.

Other deliverability measures include putting authentication protocols such as DKIM, SPF and DMARC in place, to reassure inbox providers that messages are not forged. A new protocol, called Brand Indicators for Message Identification (BIMI) has recently been gaining ground. When senders implement BIMI, a brand-controlled logo can appear next to a message in an inbox that supports the feature, adding to the message’s credibility and building brand recognition.

Email marketing platform vendors also build personal relationships with inbox providers, designating specialists on their teams to serve as liaisons with the biggest ISPs. Through these relationships, which often leverage technology integrations to collect feedback, they can keep up with changes and head off issues before they affect clients’ businesses.

Data management

The ways that email marketing platforms allow marketers to capture, analyze and act on data are
the areas of the greatest competition and differentiation between email marketing platforms.

The most sophisticated email marketing platforms, however, go well beyond this by incorporating CDP functionality. These systems gather data from your recipients’ interactions with your emails, but can also append information from a variety of on- and off-line touchpoints, as well as third-party data sources.

Given marketers’ shift to prioritizing first-party data, an email address is often the most valuable information about a customer or prospect, especially because it can lead to gathering additional information.

Most email marketing platforms have tools that help marketers manage list hygiene, eliminating bounces and unsubscribes in keeping with regulations like CAN-SPAM. Some providers may also include tools to reactivate or unsubscribe addresses that have not interacted with your messages for a given period.

More sophisticated applications for data include audience building and segmentation, including the use of artificial intelligence and machine learning to surface insights from big data stores.

Analytics and reporting

At a minimum, email marketing platforms offer reporting on things like delivery rates, clickthrough rates, bounces and unsubscribes. If you’re able to connect the platform to data from the point of purchase, or to other conversion events, you may be able to tie your email messages to specific returns.

E-commerce capabilities

Email is especially valuable to e-commerce, direct-to-consumer and multichannel retailers. Some providers offer functionalities created specifically for integration with e-commerce platforms, which enable personalization for cross-selling and upselling, as well as interactivity to allow purchases directly from an email message.

Third-party integrations

While, for many marketers, email is one of their most important channels, it’s unlikely to be the only one. Therefore, integrations with other marketing and business applications are critical. Most vendors offer integrations to other systems, but workflows are smoother within some interfaces compared to others.

Automation and landing pages

Another feature offered in email marketing platforms is the ability to automate the sending of individual emails or series of messages, such as warm-up series, drip campaigns or messaging triggered by a particular recipient behavior (such as shopping cart abandonment, for example).

Like automation, the creation of landing pages tailored for individual marketing campaigns is another feature typically associated with marketing automation platforms.

The benefits of email marketing platforms

While any but the most nascent of businesses will likely have adopted some approach to email, given its centrality to business in general, adopting an enterprise solution offers many benefits. These may include:

  • Data unification across channels. Some email marketing platforms include full-fledged customer data platforms, but, even if they don’t, the customer databases associated with these systems can serve as a single source of truth across an organization. Such unification can provide businesses with a complete portrait of their customers, permitting them to leverage data for marketing, customer service and product development purposes. Platforms can also assist with compliance with CAN-SPAM and other privacy regulations.
  • A more unified technology stack overall. Most email marketing platforms offer extensive integrations with other business technologies, allowing companies to more easily work across silos.
  • Ability to identify more profitable audiences and segmentation strategies. The unified data trove gives marketers the opportunity to get to know their customers better, and also to identify lookalike audiences by connecting to additional data sources. Artificial intelligence and machine learning capabilities can surface useful insights that marketers may not know to look for.
  • More efficient workflows. Every email message that’s meant to be delivered to an audience or segment typically goes through an internal review and approval process. Some email marketing platforms feature the ability to collaborate and obtain approvals within the platform, which is especially helpful for larger more-distributed organizations and those in more regulated industries. Franchises and other multilocation businesses benefit from even more complex systems aimed at sharing useful assets and establishing guidelines, while also allowing those closest to the customers to add valuable customization.
  • More personal and efficient communication with customers. Template design combined with data insights and segmentation can allow businesses to deliver more personalized, relevant and timely messaging. Automation and triggered-messaging features allow for more efficiency, as well. When systems include SMS or mobile notification options, this allows businesses to extend communications to those channels.
  • Improved deliverability and design of email messages. Email marketing platforms’ deliverability systems – both technological and relationship-oriented – can help businesses ensure their messages make it to the inbox. Once they arrive, design and preview features give marketers more control over how their messages appear, no matter where they are viewed.
  • Access to more advanced templating and interactivity. Interactive capabilities via AMP for email or CSS are more easily accessible with the help of email marketing platforms, allowing businesses to create more engaging messages with better return.
  • Better ability to measure return on investment (ROI) and more. Data and reporting capabilities can tie email messages to specific business goals, allowing marketers to optimize content and targeting to achieve the best possible results.

About The Author

Does your marketing team need a digital experience platform DXPDoes your marketing team need a digital experience platform DXP

Pamela Parker is Research Director at Third Door Media’s Content Studio, where she produces MarTech Intelligence Reports and other in-depth content for digital marketers in conjunction with Search Engine Land and MarTech. Prior to taking on this role at TDM, she served as Content Manager, Senior Editor and Executive Features Editor. Parker is a well-respected authority on digital marketing, having reported and written on the subject since its beginning. She’s a former managing editor of ClickZ and has also worked on the business side helping independent publishers monetize their sites at Federated Media Publishing. Parker earned a master’s degree in journalism from Columbia University.

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How Does Success of Your Business Depend on Choosing Type of Native Advertising?

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How Does Success of Your Business Depend on Choosing Type of Native Advertising?

The very first commercial advertisement was shown on TV in 1941. It was only 10 seconds long and had an audience of 4,000 people. However, it became a strong trigger for rapid advertising development. The second half of the 20th century is known as the golden age of advertising until the Internet came to the forefront and entirely transformed the advertising landscape. The first commercial banner appeared in the mid-90s, then it was followed by pop-ups, pay-by-placement and paid-pay-click ads. Companies also started advertising their brands and adding their business logo designs, which contributes to consumer trust and trustworthiness.

The rise of social media in the mid-2000s opened a new dimension for advertising content to be integrated. The marketers were forced to make the ads less intrusive and more organic to attract younger users. This is how native advertising was born. This approach remains a perfect medium for goods and services promotion. Let’s see why and how native ads can become a win-win strategy for your business.

What is native advertising?

When it comes to digital marketing, every marketer talks about native advertising. What is the difference between traditional and native ones? You will not miss basic ads as they are typically promotional and gimmicky, while native advertising naturally blends into the content. The primary purpose of native ads is to create content that resonates with audience expectations and encourages users to perceive it seamlessly and harmoniously.

Simply put, native advertising is a paid media ad that organically aligns with the visual and operational features of the media format in which it appears. The concept is quite straightforward: while people just look through banner ads, they genuinely engage with native ads and read them. You may find a lot of native ads on Facebook, Twitter and Instagram – they appear in the form of “in-feed” posts that engage users in search for more stories, opinions, goods and services. This unobtrusive approach turns native ads into a powerful booster for any brand.

How does native advertising benefit your business?

An average Internet user comes across around 10,000 ads a day. But even physically, it is impossible to perceive this amount of information in 24 hours. So, most of them use adblockers, nullifying all efforts of markers. Native ads successfully overcome this digital challenge thanks to their authenticity. And this is not the only advantage of native advertising. How else does your business benefit? Here are just a few major benefits that prove the value of native ads:

Better brand awareness. Native ads contribute to the brand’s visibility. They seamlessly blend into educational, emotional, and visual types of content that can easily become viral. While promotional content typically receives limited shares, users readily share valuable or entertaining content. Consequently, while you incur expenses only for the display of native ads, your audience may go the extra mile by sharing your content and organically promoting your brand or SaaS product at no additional cost.

Increased click-through rates. Native ads can generate a thrilling click-through rate (CTR) primarily because they are meticulously content-adaptable. Thus, native ads become an integral part of the user’s journey without disrupting their browsing experience. Regardless of whether your native advertising campaign is designed to build an audience or drive specific actions, compelling content will always entice users to click through.

Cost-efficient campaign performance. Native advertising proves to be cheaper compared to a traditional ad format. It mainly stems from a higher CTR. Thanks to precise targeting and less customer resistance, native ads allow to bring down cost-per-click.

Native ads are continuously evolving, enabling marketers to experiment with different formats and use them for successful multi-channel campaigns and global reach.

Types of native advertising

Any content can become native advertising as there are no strict format restrictions. For example, it can be an article rating the best fitness applications, an equipment review, or a post by an influencer on a microblog. The same refers to the channels – native ads can be placed on regular websites and social media feeds. Still, some forms tend to be most frequently used.

  • In-feed ads. This type of ad appears within the content feed. You have definitely seen such posts on Facebook and Instagram or such videos on TikTok. They look like regular content but are tagged with an advertising label. The user sees these native ads when scrolling the feed on social media platforms.
  • Paid search ads. These are native ads that are displayed on the top and bottom of the search engine results page. They always match user’s queries and aim to capture their attention at the moment of a particular search and generate leads and conversions. This type of ad is effective for big search platforms with substantial traffic.
  • Recommendation widgets. These come in the form of either texts or images and can be found at the end of the page or on a website’s sidebar. Widgets offer related or intriguing content from either the same publisher or similar sources. This type of native ads is great for retargeting campaigns.
  • Sponsored content. This is one of the most popular types of native advertising. Within this format, an advertiser sponsors the creation of an article or content that aligns with the interests and values of the platform’s audience. They can be marked as “sponsored” or “recommended” to help users differentiate them from organic content.
  • Influencer Advertising. In this case, advertisers partner with popular bloggers or celebrities to gain the attention and trust of the audience. Influencers integrate a product, service, or event into their content or create custom content that matches their style and topic.

Each of these formats can bring stunning results if your native ads are relevant and provide value to users. Use a creative automation platform like Creatopy to design effective ads for your business.

How to create a workable native ad?

Consider these 5 steps for creating a successful native advertising campaign:

  • Define your target audienceUsers will always ignore all ads that are not relevant to them. Unwanted ads are frustrating and can even harm your brand. If you run a store for pets, make sure your ads show content that will be interesting for pet owners. Otherwise, the whole campaign will be undermined. Regular market research and data analysis will help you refine your audience and its demographics.
  • Set your goals. Each advertising campaign should have a clear-cut objective. Without well-defined goals, it is a waste of money. It is a must to know what you want to achieve – introduce your brand, boost sales or increase your audience.
  • Select the proper channels. Now, you need to determine how you will reach out to your customers. Consider displaying ads on social media platforms, targeting search engine result pages (SERPs), distributing paid articles, or utilizing in-ad units on different websites. You may even be able to get creative and use email or SMS in a less salesy and more “native”-feeling way—you can find samples of texts online to help give you ideas. Exploring demand side platforms (DSP) can also bring good results.
  • Offer compelling content. Do not underestimate the quality of the content for your native ads. Besides being expertly written, it must ideally match the style and language of the chosen channel,whether you’re promoting professional headshots, pet products, or anything else. The main distinctive feature of native advertising is that it should fit naturally within the natural content.
  • Track your campaign. After the launch of native ads, it is crucial to monitor the progress, evaluating the costs spent and results. Use tools that help you gain insights beyond standard KPIs like CTR and CPC. You should get engagement metrics, customer data, campaign data, and third-party activity data for further campaign management.

Key takeaway

Summing up the above, it is time to embrace native advertising if you haven’t done it yet. Native ads seamlessly blend with organic content across various platforms, yielding superior engagement and conversion rates compared to traditional display ads. Marketers are allocating higher budgets to native ads because this format proves to be more and more effective – content that adds value can successfully deal with ad fatigue. Native advertising is experiencing a surge in popularity, and it is to reach its peak. So, do not miss a chance to grow your business with the power of native ads.or you can do digital marketing course from Digital Vidya.

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OpenAI’s Drama Should Teach Marketers These 2 Lessons

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OpenAI’s Drama Should Teach Marketers These 2 Lessons

A week or so ago, the extraordinary drama happening at OpenAI filled news feeds.

No need to get into all the saga’s details, as every publication seems to have covered it. We’re just waiting for someone to put together a video montage scored to the Game of Thrones music.

But as Sam Altman takes back the reigns of the company he helped to found, the existing board begins to disintegrate before your very eyes, and everyone agrees something spooked everybody, a question arises: Should you care?

Does OpenAI’s drama have any demonstrable implications for marketers integrating generative AI into their marketing strategies?

Watch CMI’s chief strategy advisor Robert Rose explain (and give a shoutout to Sutton’s pants rage on The Real Housewives of Beverly Hills), or keep reading his thoughts:

For those who spent last week figuring out what to put on your holiday table and missed every AI headline, here’s a brief version of what happened. OpenAI – the huge startup and creator of ChatGPT – went through dramatic events. Its board fired the mercurial CEO Sam Altman. Then, the 38-year-old entrepreneur accepted a job at Microsoft but returned to OpenAI a day later.

We won’t give a hot take on what it means for the startup world, board governance, or the tension between AI safety and Silicon Valley capitalism. Rather, we see some interesting things for marketers to put into perspective about how AI should fit into your overall content and marketing plans in the new year.

Robert highlights two takeaways from the OpenAI debacle – a drama that has yet to reach its final chapter: 1. The right structure and governance matters, and 2. Big platforms don’t become antifragile just because they’re big.

Let’s have Robert explain.

The right structure and governance matters

OpenAI’s structure may be key to the drama. OpenAI has a bizarre corporate governance framework. The board of directors controls a nonprofit called OpenAI. That nonprofit created a capped for-profit subsidiary – OpenAI GP LLC. The majority owner of that for-profit is OpenAI Global LLC, another for-profit company. The nonprofit works for the benefit of the world with a for-profit arm.

That seems like an earnest approach, given AI tech’s big and disruptive power. But it provides so many weird governance issues, including that the nonprofit board, which controls everything, has no duty to maximize profit. What could go wrong?

That’s why marketers should know more about the organizations behind the generative AI tools they use or are considering.

First, know your providers of generative AI software and services are all exploring the topics of governance and safety. Microsoft, Google, Anthropic, and others won’t have their internal debates erupt in public fireworks. Still, governance and management of safety over profits remains a big topic for them. You should be aware of how they approach those topics as you license solutions from them.

Second, recognize the productive use of generative AI is a content strategy and governance challenge, not a technology challenge. If you don’t solve the governance and cross-functional uses of the generative AI platforms you buy, you will run into big problems with its cross-functional, cross-siloed use. 

Big platforms do not become antifragile just because they’re big

Nicholas Taleb wrote a wonderful book, Antifragile: Things That Gain From Disorder. It explores how an antifragile structure doesn’t just withstand a shock; it actually improves because of a disruption or shock. It doesn’t just survive a big disruptive event; it gets stronger because of it.

It’s hard to imagine a company the size and scale of OpenAI could self-correct or even disappear tomorrow. But it can and does happen. And unfortunately, too many businesses build their strategies on that rented land.

In OpenAI’s recent case, the for-profit software won the day. But make no bones about that victory; the event wasn’t good for the company. If it bounces back, it won’t be stronger because of the debacle.

With that win on the for-profit side, hundreds, if not thousands, of generative AI startups breathed an audible sigh of relief. But a few moments later, they screamed “pivot” (in their best imitation of Ross from Friends instructing Chandler and Rachel to move a couch.)

They now realize the fragility of their software because it relies on OpenAI’s existence or willingness to provide the software. Imagine what could have happened if the OpenAI board had won their fight and, in the name of safety, simply killed any paid access to the API or the ability to build business models on top of it.

The last two weeks have done nothing to clear the already muddy waters encountered by companies and their plans to integrate generative AI solutions. Going forward, though, think about the issues when acquiring new generative AI software. Ask about how the vendor’s infrastructure is housed and identify the risks involved. And, if OpenAI expands its enterprise capabilities, consider the implications. What extra features will the off-the-shelf solutions provide? Do you need them? Will OpenAI become the Microsoft Office of your AI infrastructure?

Why you should care

With the voluminous media coverage of Open AI’s drama, you likely will see pushback on generative AI. In my social feeds, many marketers say they’re tired of the corporate soap opera that is irrelevant to their work.

They are half right. What Sam said and how Ilya responded, heart emojis, and how much the Twitch guy got for three days of work are fodder for the Netflix series sure to emerge. (Robert’s money is on Michael Cera starring.)

They’re wrong about its relevance to marketing. They must be experiencing attentional bias – paying more attention to some elements of the big event and ignoring others. OpenAI’s struggle is entertaining, no doubt. You’re glued to the drama. But understanding what happened with the events directly relates to your ability to manage similar ones successfully. That’s the part you need to get right.

Want more content marketing tips, insights, and examples? Subscribe to workday or weekly emails from CMI.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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The Complete Guide to Becoming an Authentic Thought Leader

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The Complete Guide to Becoming an Authentic Thought Leader

Introduce your processes: If you’ve streamlined a particular process, share it. It could be the solution someone else is looking for.

Jump on trends and news: If there’s a hot topic or emerging trend, offer your unique perspective.

Share industry insights: Attended a webinar or podcast that offered valuable insights. Summarize the key takeaways and how they can be applied.

Share your successes: Write about strategies that have worked exceptionally well for you. Your audience will appreciate the proven advice. For example, I shared the process I used to help a former client rank for a keyword with over 2.2 million monthly searches.

Question outdated strategies: If you see a strategy that’s losing steam, suggest alternatives based on your experience and data.

5. Establish communication channels (How)

Once you know who your audience is and what they want to hear, the next step is figuring out how to reach them. Here’s how:

Choose the right platforms: You don’t need to have a presence on every social media platform. Pick two platforms where your audience hangs out and create content for that platform. For example, I’m active on LinkedIn and X because my target audience (SEOs, B2B SaaS, and marketers) is active on these platforms.

Repurpose content: Don’t limit yourself to just one type of content. Consider repurposing your content on Quora, Reddit, or even in webinars and podcasts. This increases your reach and reinforces your message.

Follow Your audience: Go where your audience goes. If they’re active on X, that’s where you should be posting. If they frequent industry webinars, consider becoming a guest on these webinars.

Daily vs. In-depth content: Balance is key. Use social media for daily tips and insights, and reserve your blog for more comprehensive guides and articles.

Network with influencers: Your audience is likely following other experts in the field. Engaging with these influencers puts your content in front of a like-minded audience. I try to spend 30 minutes to an hour daily engaging with content on X and LinkedIn. This is the best way to build a relationship so you’re not a complete stranger when you DM privately.

6. Think of thought leadership as part of your content marketing efforts

As with other content efforts, thought leadership doesn’t exist in a vacuum. It thrives when woven into a cohesive content marketing strategy. By aligning individual authority with your brand, you amplify the credibility of both.

Think of it as top-of-the-funnel content to:

  • Build awareness about your brand

  • Highlight the problems you solve

  • Demonstrate expertise by platforming experts within the company who deliver solutions

Consider the user journey. An individual enters at the top through a social media post, podcast, or blog post. Intrigued, they want to learn more about you and either search your name on Google or social media. If they like what they see, they might visit your website, and if the information fits their needs, they move from passive readers to active prospects in your sales pipeline.

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