Email Marketing and Social Media Marketing are like boat and ship. It is difficult to compare among the two. Both serve different purposes according to the overall strategy of your agency. Their comparison is an evergreen heated debate these days. Both of these have legitimate marketing goals and it is hard to find out which one is the most cost effective and productive among the two.
Although both can generate a lot of value, but for the purpose of growing our businesses, we must know and analyze the difference among the two. However, once you analyze your audience and brand effectively, then you can figure out which platform is more effective for your business.
This is where Email Marketing performs better:
- Reach → The truth is having 1000 email subscribers and having 1000 facebook fans is not the same thing. The reach to your email subscribers is more relevant than posting on Facebook or Twitter.
- Higher Click Rate → Email is the king. According to research, it has been revealed that email drives double the click rate as compared to social media. The average click rates received from all the channels are: Email – 3.57%, Facebook- 0.07% and Twitter – 0.03%.
- Higher Conversion Rate → Similarly, conversion rate is higher with emails than social media. With the options given by most email marketing providers, you can deliver highly targeted messages based on the behavior of your subscribers. Due to which, more conversion through emails is observed.
- Better ROI → When you receive more clicks and better conversion rates due to email marketing, then ultimately you get better ROI. Everything in business comes to ROI and cost of opportunity.
This is where Social Media Marketing performs better:
- Higher Engagement Rate → Social media is the best medium to maintain your relationships with the customers. It delivers maximum engagement rate.
- Popularity → Social media is best to gain popularity among people and make your brand name more popular. Social media content is much stickier and give you a long time relationship with users. Most people do not open email and the content goes in vain but in social media any content can go viral and the activity around it continues for months.
- Higher Click Way for Email Conversions → Social media is very much responsible for getting clicks. In other words, social media engages the audience and helps email convert better. It tends to generate more assisted conversions that email (1010 assisted and 173 direct).
- Branding → Mostly companies are on social media to create an image of their brand or to leave an impression. Your branding, feedbacks, product face, logo etc is much more visible on social media channels.
- Honest Feedbacks → People will give honest feedbacks about your brand/product to update others as well. You get to know what people think about you and then you make improvements accordingly.
Here I am sharing with you an assumption on effectiveness with email engagement and social media engagement.
Have a look…
- Facebook Followers
- Acquisition cost = $1/Like (according to Search Engine Journal)
- Post Boost Cost: $20
- Reach: Organic = 7%, Boosted = 21% (300% increase)
- Conversion rate = 4%
- Email Database
- Acquisition cost = $4 (This figure varies widely depending on how the emails are acquired.
- Emailing cost: = $100 (monthly MailChimp pricing)
- Open Rate = 20%
- Conversion Rate = 2.5%
- 5,000 Likes x 21% Boosted Reach = 1,505 followers reached
- 1,505 Followers x 4% conversion = 42 participants
- 5,000 Likes x $1 per Like = $5,000 acquisition cost
- $20 Boost cost x 1 boosted post = $20 marketing cost
- Total cost = $5,020
- Cost / participant = $5,020 / 42 = $119.52
- 5,000 subscribers x 20% open rate = 1,000 subscribers reached
- 1,000 subscribers x 2.5% conversion rate = 25 participants
- 5,000 subscribers x $4 per subscriber = $20,000 acquisition cost
- $100 monthly emailing cost x 1 email blast = $100 marketing cost
- Total cost = $20,100
- Cost / participant = $20,100 / 25 = $804.00
Over To You:
Can you think of other reasons to differentiate email marketing and social media? Please share on comment section below.