New low cost platform promises to revolutionize email marketing – again
Amazon’s expanding portfolio of Cloud services has revolutionized the IT industry several times before, and their latest product is no different. This time, the Amazon Simple Email Service (SES) is driving down the cost of email marketing – by as much as 100%.
The Amazon Simple Email Service combines the low-cost, flexible capabilities of the Amazon Cloud with the mass-mailing capabilities of popular platforms like MailChimp and Campaign Monitor. However, Amazon SES is also much, much cheaper than its more established rivals.
Email marketing platforms have never been considered particularly expensive once they begin to generate results. According to research published by B2B Marketing, 82% of marketers have made email their priority channel for investment this year due to the healthy returns on investment available.
However, Amazon SES is about to increase returns almost 100-fold thanks to its ultra-low headline costs. Using SES, each email costs just $1 per 10,000 messages (or $0.0001 each). This is a significant saving over MailChimp which would charge $200 for the same volume of messages.
The savings are even more impressive when sending hundreds of thousands of messages. 500,000 emails costs just $50 using Amazon SES, or $5005 when using Campaign Monitor.
“With costs so low, we fully expect to see Amazon SES quickly establish itself as a major player in the email marketing arena,” said Nicolae Buldumac, managing director of contacts database provider Global Database, “established players like MailChimp will need to respond quickly, dropping their own fees, or creating new value-added services to justify the costs being charged. Either way, it is the email marketer who stands to gain most from SES entering the market.”
In keeping with the rest of the Amazon Web Services (AWS) family, SES is billed on a pay-as-you-use basis. There are no up-front subscription fees, and all use is billed retrospectively to ensure customers are never over-charged.
The Amazon SES service also offers a ‘Free Tier’ for accounts that already have a paid EC2 subscription. The Free Tier allows subscribers to send up to 62,000 messages completely free of charge, after which they are billed the same ultra-low fee of $0.0001 per mail.
“For businesses already using AWS, the choice to adopt SES is a no-brainer,” continued Buldumac, “the ability to send their first 62,000 emails completely free of charge will free up money in the marketing budget that can be invested in other activities, like purchasing more accurate contact data, or running additional campaigns to boost results.”
Amazon do levy one additional charge for messages sent via the SES platform. Email attachments sent as part of a campaign are billed at an additional $0.12 per gigabyte. For most email campaigns, the increase in cost will be negligible, but it should be a consideration when designing campaigns around larger assets, like eBooks and white papers.
The benefits of Amazon SES extend beyond per-email cost savings too. The Cloud-hosted SES platform can be deployed with minimal reconfiguration of an existing marketing system for instance, and there is absolutely no need for additional capital investment.
The SES service also boasts improved deliverability, thanks to built-in content filtering technologies. These filters assess the quality of every outgoing message to ensure that the content adheres to ISP standards required for successful delivery. Where SES detects a problem, the message is re-routed to the sender for correction. This helps to reduce the risk of being classified incorrectly as a spammer, or wasting resources processing bounced messages.
“Some marketers have claimed that email marketing is dead. But the reality is that it email remains one of the most popular and profitable channels available. And Amazon SES is set to revolutionize the market once again – marketers and recipients will be the winners from these developments.”
To learn more about Amazon SES and how Global Database can turbocharge your email campaigns with the most accurate contact data for 6.8 million decision makers worldwide, please get in touch.
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