Much has been written about companies’ increased spending on integrated Internet marketing, from search engine optimization and Webinars to podcasts, social networks, and video on demand. While these nontraditional strategic communication tactics represent smart, innovative ways for marketers to reach consumers and build brand awareness, permission-based email marketing continues to perform the strongest.

In fact, consumer backlash over spam and phishing, flawed opt-out practices, and bulging in-boxes has done little stem the growth of email marketing programs. Email, once considered a supplement to direct mail marketing, has evolved into one of the most cost-effective, powerful integrated marketing communication channels. Just how powerful? The Direct Marketing Association (DMA) projects that email ROI will hit $45.65 for every dollar spent this year.

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According to JupiterResearch, direct email marketing spending will grow to $2.1 billion in 2012, from $1.2 billion in 2007. Additionally, spending on customer retention email will account for more than half of total email spending by 2012. In a separate study of some 2,000 online marketers conducted by Datran Media, 82 percent of respondents indicated that they plan to expand their email marketing programs in 2008, and 80 percent said email was the strongest-performing online advertising buy, ahead of search and display advertising.

Of those who use email as a strategic communications tool, the Datran Media study found, 78 percent hope to drive sales, 53 percent seek to reactivate dormant customers, 71 percent wish to enhance customer relationships, and 65 percent expect to increase brand awareness. It’s clearly having a positive effect: Nearly two-thirds of U.S. Internet users surveyed said they made a purchase because of a marketing message received through email, according to a study by ExactTarget. Additionally, about two-thirds of respondents to a joint survey by Habeas and Ipsos said they preferred email when dealing with businesses.

David Hallerman, a senior analyst at e-Marketer, cautions that email marketers may have to spend more in the coming years to remain relevant with their target audiences. “Email marketing is effective,” he says, “but spending is tempered by the somewhat, but not entirely, valid impression among many companies that email is inexpensive marketing and that they therefore need not throw too much money at these programs.”

To increase the effectiveness of your email marketing strategies, consider these three tips from EmailLabs, a leading email solutions provider (www.emaillabs.com):

1. Define your email value proposition (EVP). Without a clear focus and value proposition, your email won’t hit your recipient’s “internal inbox.” People can manage only a limited number of regular email communications. Give them clear reasons to open your emails every time. Define your EVP much like you would a brand positioning statement and use it to drive your content, creative, frequency, and segmentation strategies.

2. Integrate with other integrated marketing channels. Email marketing can’t exist in a silo. You’ll get a higher ROI when you integrate it with other marketing channels and touch points, such as direct mail, telemarketing, and trade shows. Design search-engine landing pages to make it easier to begin a relationship. Promote newsletter content through multiple channels, and reprint email information on your Web site.

3. Allocate necessary resources. Many companies initially got into email marketing because it was cheaper than traditional direct mail, but the landscape has changed. From ISP relations to technological innovation and government regulations, email marketing is more complex now. So your organization must allocate adequate budgets, resources, and know-how to do the job right and achieve your ROI goals. Your email service provider should be able to help you out, but you must also educate your team and key influencers in your company.

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