By 2025, the number of email users will be roughly 4.6 billion.
Considering these statistics, it’s no surprise that 82% of marketers allocate up to 20% of their budget to email marketing. And over the past year, 77% of marketers have witnessed a boost in their email engagement.
Before incorporating email marketing into your digital marketing strategy, you have to ask yourself: "How much does email marketing cost? What costs are associated with this strategy? How can I save money on email marketing?”
This guide answers all that to help you get started effectively.
Table of Contents
- What are the Factors that Determine the Email Marketing Cost?
- Email Service Provider Cost
- Email Marketing Campaign Cost
- Email Design Cost
- Email Marketing Campaign Copywriting Cost
- Cost of Email Marketing Services by Budget
- How to Calculate the ROI for an Email Marketing Campaign
- How to Save Money on the Cost of Email Marketing Services
- Best Email Marketing Agencies to Work With
- Email Marketing Cost: Final Words
What are the Factors that Determine the Email Marketing Cost?
To give you a better idea of what drives up your email marketing budget, here are some of the main factors that affect the cost of email marketing services:
- Number of Subscribers: The more subscribers you have, the more expensive it will be because it requires more resources to send emails to a larger group of people.
- Email Marketing Software: The more complex your software needs are, the more expensive it will be. This won't be an issue if you only send a few emails monthly or less. But if you plan on sending more than 20 emails daily, investing in more sophisticated tools might make sense.
- Features: The number of features available on each platform varies widely between different providers and even within different packages offered by the same provider. Some platforms provide many different templates, while others only include templates designed by their team.
- Annual Revenue: If your organization brings in more than $1 million in sales annually, you'll need to invest in something more robust. You can't afford to risk losing out on potential customers because your emails aren't delivered.
- Industry: If you're in retail or travel or another industry that relies heavily on email marketing, then it's likely that your costs will be higher than those where customers are less likely to expect emails from their vendors.
- Product or Services Offered: What products or services do you sell? Do they require lots of customer support? Do they need some special equipment? If so, these things will also affect your emails' costs because they require more effort to set up and maintain.
- Marketing Goals: If you want to increase sales or improve customer loyalty through targeted campaigns, then hiring someone who knows what they're doing could make all the difference in how well your email campaign performs.
Email Service Provider Cost
The cost of an email service provider (ESP) will depend on the type of plan you select. There are various ESPs, each with different features and price points.
For example, a primary ESP will allow you to create an email list, send campaigns, and track your results. A premium ESP gives you more features, such as ESP automation, personalized email segmentation, and more.
Choose an ESP that best suits your business needs, and it will help you keep your email marketing costs as low as possible.
Here are some platforms you can try:
- MailChimp: $0 - $1,030+ per month
- Constant Contact: $9.99 - $410+ per month
- Sendinblue: $0 to $1,000 per month
- ActiveCampaign: $9 - $549+ per month
Each of these companies offers its advantages, but they all provide the same basic functions:
- Send emails directly to your customers.
- Track their activity over time.
- Create landing pages that drive traffic back to your website and more.
Email Marketing Campaign Cost
If you want to run an email marketing campaign, you could pay a marketing agency anywhere from $15 – $100+ per hour.
If you hire a freelancer through Upwork or Fiverr, you can expect to pay between $3 and $20+ per email sent through their platform. This would vary depending on whether they send out one-off or multiple campaigns over time.
The type of campaign you run will depend on what you want to do and how much time you have to commit.
The following types of campaigns will cost different amounts:
- Pitching New Products: Creating a marketing campaign for a new product will depend on the type of product you’re pitching and the price point.
- Re-engaging Subscribers: Re-engaging subscribers who have not purchased from you is one of the most cost-effective strategies. You can create email templates tailored to specific segments of your subscribers and send them at the right time, depending on their interests.
- Selling Existing Products: Creating an email campaign to sell existing products requires you to segment your subscriber list and create different email templates for each segment. The more tailored your emails are to your subscribers, the more likely they will purchase.
Email Design Cost
When setting your budget for email marketing campaign cost, remember the design, as it can have a significant impact on the success of your email marketing campaign.
Many elements go into the design, from color to size and font. It's imperative to have a well-designed campaign so that the content can be read and understood easily.
Designing an email can range from $25 – $150+ per hour. It depends on who you work with and the level of detail expected in the design.
Email Marketing Campaign Copywriting Cost
Email copywriting is a way to connect with your audience through their inboxes. It's also an efficient strategy to improve your brand's reputation, increase sales, and build customer loyalty. But how much does email copywriting cost?
The average price of an email copywriting campaign runs anywhere from $35 per email to $2,000 per email. The cost will depend on several factors:
- Length and complexity of the content
- Number and type of messages (Welcome, offers, launches, surveys, newsletters, etc.)
- Length of time
- Copywriter or agency’s expertise
Cost of Email Marketing Services by Budget
Depending on your budget, you can choose the services you want and need:
- Free Email Marketing Service ($0): If you have a minimal budget, you can use a free email marketing service to run your campaign. Using a free email marketing service has limitations, so you’re better off investing in a paid service once your business has grown.
- In-house Email Marketing (Up to $2,500+ per month): Getting an in-house email marketing team is a long-term strategy and will require hiring an email marketing specialist and investing in the right software.
- Outsourced Email Marketing ($300 - $12,000 per month): For businesses with an intermediate budget, outsourcing your email marketing campaign is an effective way to ensure its success.
How to Calculate the ROI for an Email Marketing Campaign
Identify the effectiveness of your email marketing campaign, thus, seeing whether or not the cost of email marketing services was worth it.
The ROI is calculated as: ROI = (Final Value - Initial Value) / Costs x 100%
The final value is the profit you gain from the email marketing campaign. On the other hand, the initial value is the budget you have allocated, considering the cost of email marketing services for your campaign.
How to Save Money on the Cost of Email Marketing Services
To help you find a balance between getting the most out of your email marketing and keeping costs in check, here are some tips on saving money on your email marketing costs.
Use a free email service like Gmail or Outlook for some of your emails. One of the most expensive parts of an email campaign is sending out your messages to many people.
Use an email template that's been tested for open rates and click-throughs. This can be found in any primary email service provider like Mailchimp or Campaign Monitor, or you can use a tool like Canva to make your template from scratch.
Send only one email per week if possible, and ensure it's full of helpful information that customers will want to read through at their leisure.
Build your email subscriber list. It's hard to save money if you don't have a good list of subscribers. You can't just run an ad campaign and hope people will join your mailing list. You need to build relationships with people over time, so they'll want to sign up for your emails.
Test different subject lines and send times for different segments of your audience so that you're always sending out emails that will be relevant and interesting based on their interests and habits.
Best Email Marketing Agencies to Work With
- Location: 5830 Granite Pkwy, Suite #100-360, Plano, Texas 75024, United States
- Average Hourly Rate: $35/hr
- Expertise: Digital Marketing, SEO, Social Media Marketing, Web Design…
Digital Success is a full-service agency that delivers various digital marketing services, ranging from SEO and content to email campaigns. They are among the top agencies of choice for small and mid-sized businesses in and around Dallas, Texas.
The agency develops specialized campaigns for every client, with the aim of optimizing spending and resources. The strategies and tools they use allow them to target the right consumers and drive digital success for the business.
Digital Success has catered to businesses across industries, including healthcare, legal, automobile and finance.
- Location: 1 W End Avenue, Suite 18B, New York City, New York 10023, United States
- Average Hourly Rate: $150/hr
- Expertise: Email Marketing, Social Media Marketing, Digital Marketing, Software Development…
Based in New York City, HomeTree Digital is a digital marketing agency that specializes in the financial service industry.
The agency works as a brand’s creative partner in designing the best digital experiences and customer journeys that drive results. In email marketing, they help clients with personalized distribution and advanced reporting. They are experienced in tools like MailChimp, HubSpot, Marketing Cloud and more.
Aside from digital marketing, the agency also offers software development, web design, brand identity and video production.
- Location: 353-3 Jalan C Y Choy, 10300 Georgetown, Penang, Malaysia., Penang, 10300, Malaysia
- Average Hourly Rate: $40/hr
- Expertise: 360° Digital Services, Digital Strategy, Branding, Graphic Design, Media Buying, Web Design, eCommerce Development, Website Development, Digital Marketing, Legal Digital Marketing, SEO, Google AdWords, Social Media Marketing.
Kode Digital Experts Services is an established digital agency based in Malaysia, founded in 2018.
Kode Digital Experts Services provides creative and innovative 360° digital solutions to help companies reach their goals. Its services range from Digital Strategy, Branding, Graphic Design, Media Buying, Web Design, eCommerce Development, Website Development, Digital Marketing, Legal Digital Marketing, SEO, and Google AdWords, to Social Media Marketing.
Believing in the power of digital marketing and technology, the agency strives to provide clients with tailored services that can meet their individual needs. Its team is composed of passionate creatives and professionals who have years of experience in the field; they always strive to deliver exceptional results and exceed the expectations of their clients.
Some of Kode Digital Experts Services’ most notable clients include Nomura Asset Management Malaysia, De.Wan 1958 by Chef Wan and Buddhist Tzu Chi Merits Society Malaysia.
Email Marketing Cost: Final Words
Marketing is a numbers game. You must try as many different things as possible if you're a beginner. For instance, testing emails to grow and develop their sales funnel.
Even if most of them don't work, you'll pick up more than enough information from the rest that will ultimately justify your efforts.
Email marketing is a highly effective strategy, so long as you have considered the cost of implementing it.
But if you're concerned about cost, look for free trials and demos that let you test different email marketing platforms before taking the plunge.