Email marketing is one of the most economical forms of marketing. Companies make an average of $38 for every $1 invested in email marketing. That is quite remarkable. But how much does email marketing cost?
In this blog, you will get all the information you require about email marketing costs. From list building and email marketing tools to managing your tasks internally, outsourcing, and more.
Let’s get started with our email marketing guide!
Table of Contents
Understanding the Components of Email Marketing Costs
Email marketing pricing comprises several parts, each of which adds to the total cost of maintaining a successful email campaign:
1. Email Marketing Platforms
Email marketing systems, which include crucial functions such as email template generation, list segmentation, automation, and analytics, constitute the basis for carrying out email campaigns.
These platforms’ prices vary according to features, number of subscribers, and other services.
2. Subscriber List Management
Maintaining subscriber lists involves keeping them clean, adding new members, and segmenting them according to behavior or demographics.
Expenses for list-building strategies, tools for managing subscriptions, and adherence to data protection laws may also be included.
3. Email Design and Content Creation
Good email design and content generation are essential to engaging recipients and increasing conversions. This area includes expenses for employing copywriters, designers, and content producers.
Email marketing campaign costs include purchasing graphic design tools and services for customizing email templates.
4. Testing and Analytics Tools
Testing and analytics tools help marketers maximize email campaigns by examining performance indicators and running A/B tests.
Email marketing costs could include analytics tools for analyzing key performance indicators (KPIs), including open and click-through rates, testing platform subscriptions, and email deliverability monitoring services.
5. Additional Services and Integration Costs
Depending on particular business demands, email marketing may require additional services and integration fees in addition to its fundamental components.
It includes email marketing campaign costs for services such as consulting on email deliverability, developing custom integrations with other marketing tools or platforms via APIs, integrating marketing automation, and integrating CRM systems.
The cost for these email and content marketing services can vary widely based on complexity, ranging from $500 to several thousand dollars.
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Factors Influencing the Cost of Email Marketing
Email marketing has several advantages, but what factors affect the total cost?
Email marketing services pricing is influenced by a few factors more than others. While many factors can increase a campaign’s cost, most also increase the project’s scope or complexity.
Consider the following factors that significantly influence email marketing pricing to understand it better:
1. Services Offered
Email marketing companies offer various services, including consulting, list management, campaign execution, design, and strategy creation.
These suppliers could bill more for their extensive services. Some could only provide a smaller range of services, such as campaign execution, and so be able to charge less.
2. Email Volume
Many email marketing agencies charge based on the number of emails sent or the size of the campaigns. Software products have tiered price structures based largely on the volume of emails received.
Businesses may pay a higher price as it takes more resources to run campaigns, including a bigger volume of emails. Businesses can allocate funds for email campaigns by limiting the volume to what is required.
3. Features and Functionality
Clients who ask for more advanced features with digital marketing services during collaboration will pay more. Certain email marketing companies provide more advanced services than others, such as automation, A/B testing, and platform connections. This service offering comes at a higher cost due to their increased complexity and resource requirements.
4. Reputation and Brand
An organization’s brand awareness and reputation can greatly influence how much email marketing costs. Better connections with subscribers and higher deliverability rates might lower expenses for well-known businesses.
On the other hand, companies with a damaged reputation or little brand awareness might have to pay more. At the same time, they try to repair their sender image, pay for reputation management services, or devote more resources to dispelling unfavorable rumors.
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Pricing Models in Email Marketing
Email marketing businesses may use different pricing methods for the same type of work. Due to the various techniques used in email marketing services pricing, business executives may find it difficult to project the precise cost of a particular campaign without outreach.
Email marketing companies generally consider the following pricing models:
- Pay-Per-Email: As the name suggests, clients pay a fixed amount for each email sent. This price approach can help you stick to even tighter budgets if your company doesn’t intend to send many emails during a campaign.
- Monthly Retainer: Businesses pay an email marketing agency on a regular monthly basis for continued work. To establish a long-term partnership spanning several projects and campaigns, agencies are placed on retainer.
- Pay As You Go: This price structure enables companies to pay according to the number of emails they send, which benefits those with variable email volumes that are high in some months and low in others.
- Custom Pricing: Several email marketing providers provide custom pricing for clients with particular needs or for large enterprises. This model probably includes some of the features or services mentioned above in addition to others.
How Much Does Email Marketing Cost?
Email marketing software costs $0 to $99 monthly if you handle your email campaign. The size of your email list affects the price. For example, you should budget about $270 once you reach over 50,000 members.
Let’s understand the email marketing cost in detail:
Email Marketing Costs by Industry
Certain industries may require more intensive email marketing campaigns from their businesses, raising the engagement cost.
This table breaks down the average cost of an email marketing project according to the industry in which the campaign was executed. While certain businesses’ average price points are comparable, the expenditure varies greatly depending on the client’s industry.
|
Industry |
Average Project Cost |
|
Retail |
$10,000 to $49,999 |
|
Software |
$10,000 to $49,999 |
|
Manufacturing |
$10,000 to $49,999 |
|
Financial Services |
$50,000 to $199,000 |
|
Marketing and Advertising |
$50,000 to $49,000 |
|
Healthcare |
$10,000 to $49,999 |
|
IT Services |
Less than $10,000 |
Cost of Hiring an Email Marketing Agency
As per Clutch, hiring an email marketing agency typically costs between $100 and $149.
Email marketers must thoroughly understand the market, target audience, rivals, and other factors to create an effective campaign. They must also write intriguing, convincing, and original material to get clients to act.
Email Marketing Pricing by Location
The agency’s location also impacts the email marketing pricing. Clients frequently pay higher fees to service providers in North America and Western Europe than other regions.
These differences can be attributed to the greater labor expenses in nations with higher rates. Businesses seeking lower prices for email marketing services could benefit from considering offshore email marketing providers who can work with more constrained budgets.
Here is the list of hourly rates service providers regularly charge in popular locations.
|
Country |
Average Cost per Hour |
|
USA |
$100 – $149 |
|
India |
<$25 |
|
UK |
$150 – $199 |
|
Canada |
$100 – $149 |
|
Australia |
$100 – $149 |
|
Phillippines |
<$25 |
|
Ukraine |
$25 – $49 |
|
Poland |
$50 – $99 |
|
Spain |
$25 – $49 |
|
Mexico |
$25 – $49 |
Email Marketing Agency Cost
Not every company has an internal email marketing manager. Many would rather have this process done by freelancers or email marketing agencies. But what is the cost of this?
The email contact list’s volume, frequency, and size influence the rate. For large organizations, it can often start at around $300 and go up to $2,000.
Is it worthwhile? It depends on your ability to manage this project independently. Most email marketing platforms are simple and marketers can set up stunning campaigns that generate leads and troubleshoot any problems with little assistance from the support staff.
However, it’s crucial to have a copywriter on board who can present your brand in the best possible light in email newsletters. To determine whether hiring someone externally is your best option, include their hourly fee in your budget.
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How to Measure Your Email Marketing ROI?
Let’s say you’ve finally decided on your favorite email marketing provider after learning how much it will cost your company. You can use the given formula to calculate your email ROI using the average email advertising cost:
If you don’t regularly assess your strategies, how will you know if they are working? Finding your average gain might become a challenging task. The following metrics will demonstrate your earnings:
- Open rates
- Click-through rates
- Website Traffic
- Email-generated sales
- Conversion rates
- Impact on revenue
Apart from your email platform, gather information from Google Analytics or other comparable tool you use to ensure the accuracy of the results.
You may identify strategies to maximize profits while minimizing expenses based on your email marketing ROI. This can involve investing in a new platform or developing a stronger email marketing plan to convert even the most malicious readers into clients.
The Bottom Line
Calculating the email marketing cost in 2024 requires a keen understanding of the various factors, including platform fees, the size of your email list, the level of customization and automation needed, and the integration of analytics and third-party services.
While budget-friendly options are available for small businesses and startups, larger enterprises may invest significantly more to leverage advanced features and achieve higher ROIs.
Ultimately, your email marketing pricing efforts will be closely tied to your business needs, objectives, and how creatively you use these tools to engage your audience.
