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The Importance of Email Marketing for SMEs

Email marketing is still one of the most effective forms of online marketing for SMEs. While other channels are in a constant state of flux due to algorithm updates and higher advertising costs, email marketing has delivered consistent results over the years and has managed to stay cost effective. In this blog post we outline why email marketing should be part of your multi-channel digital marketing strategy and how it can deliver a strong ROI for your business.

Algorithm Updates

Over the last three years Google has released a series of algorithm updates, the headline updates were called Panda and Penguin. Theses updates decreased the rankings of websites which had poor quality content and / or a bad back link profile – deemed “spammy backlinks”.

panda penguin


SMEs that relied heavily on organic search traffic and which were negatively affected by the penalties saw the majority of traffic to their website disappear overnight. Relying on organic traffic as your only source of traffic can leave your business open to flux’s in Google’s algorithm. By developing a multi-channel approach to digital marketing your business will not be reliant on any one channel.

Email marketing should be a regular component in your digital marketing strategy. It will help develop a constant, reliable source of website traffic that won’t be affected by any future Google updates.

Higher Advertising Costs


ads facebook

Facebook has recently limited the ability of company pages to reach their followers through the company page news feed. This has led many companies to invest in Facebook advertising in order to reach their target market. But as more companies turn to Facebook ads to reach their target market, the space is becoming more competitive and the costs have increased as a result.

Google AdWords

Similar to Facebook, the cost of advertising with Google AdWords has increased due to a more competitive marketplace. A recent Econsultancy report indicated that 6 out of 10 companies plan to increase their investment in digital marketing in 2014. The larger budgets available to SMEs have created a more competitive landscape for bidding, leading to a higher cost per click.

Email Marketing Costs

Email marketing is a cost effective solution compared with the higher costs of advertising on Facebook and Google AdWords. With costs as low as €10 per email (source you can reach your target market direct and on a regular basis.

Positive ROI with Email Marketing

In a recent survey by Marketing Sherpa’s, 92% of respondents answered that email marketing produces a positive ROI for them. For the minimal costs and effort required email marketing is a channel that delivers excellent ROI. Whether you are directing customers to your website or upselling products, email marketing gives you an easy and cost effective channel to deliver real returns for your business.

Don’t Forget the Core Email Marketing Principles

Remember the fundamentals of good email marketing though with all your broadcasts. It needs to be relevant, timely and useful to the recipient. A compelling offer will more likely cut through the spam in a recipient inbox and lead to a conversion.