---
title: How To Track The ROI Of Your Email Database
description: Compared to other advertising options, building your email database is relatively easy and low-cost — and leads to great ROI.
image: https://blog.federatedmedia.com/hubfs/email%20marketing.jpeg
---
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# How To Track The ROI Of Your Email Database
#### December 16, 2024
Email marketing is one of the most effective digital advertising tools for local businesses. Many Americans [check email 20 times per day](https://porchgroupmedia.com/blog/100-compelling-email-statistics-to-inform-your-strategy-in-2023/#:~:text=99%25%20of%20email%20users%20check,social%20media%20or%20the%20news.), and spend at least [10 seconds reading emails from businesses](https://porchgroupmedia.com/blog/100-compelling-email-statistics-to-inform-your-strategy-in-2023/#:~:text=99%25%20of%20email%20users%20check,social%20media%20or%20the%20news.). That creates countless opportunities for businesses to deliver news and information to attentive, engaged consumers.
Here’s another bonus: Compared to other advertising options, building your email database is relatively easy and low-cost. Once customers share their email addresses, you have a direct line to them. Plus, email boasts lower creative and technical expenses than other media channels.
Email marketing also delivers sizable bang for your buck. The average ROI for an email campaign is [between $38 and $42 per every $1 spent](https://porchgroupmedia.com/blog/100-compelling-email-statistics-to-inform-your-strategy-in-2023/#:~:text=99%25%20of%20email%20users%20check,social%20media%20or%20the%20news.) and the estimated ROI on email is [four times higher](https://www.digitalstrike.com/email-marketing-roi/) than other digital marketing options.
## **How to calculate the ROI of your email database**
Tracking the ROI of your email database is straightforward: take revenue generated from email campaigns and compare it to the expenses of building and managing that list.
Here’s an easy formula:
- Subtract total campaign expenses from the campaign revenue.
- Divide that by the costs of the campaign.
- Multiply by 100
For instance, with winter approaching, a mechanic may want to encourage customers to winterize their vehicle, so they create an email campaign with promotional discounts. If the effort cost $500 and generated $1,500 in revenue, then the return on investment would be 200%. For every dollar invested, the car dealer earned $2 in sales, a strong return on investment.
## **Ongoing email campaigns maximize ROI**
Email marketing campaigns deliver solid returns by motivating readers to take action. In fact, [consumers who purchase products through emails spend 138% more than non-email recipients](https://porchgroupmedia.com/blog/100-compelling-email-statistics-to-inform-your-strategy-in-2023/).
Not every email needs to focus on sales. Your business can share stories about your team, recommend local activities, or provide seasonal tips relevant to your business. These personal touches keep your company top-of-mind and help build lasting relationships with your customers
If you invest in sending regular emails and regularly growing your email database, you can spread out the costs of sending emails, which helps you maximize your ROI.
To make the most of your email marketing efforts, it’s important to create messages that inspire customers to open, read, and take action. At Federated Media, our marketing experts specialize in creating custom email marketing campaigns tailored to your goals. With the support of data analytics, we optimize your campaigns for maximum impact and results.
[Contact us](https://www.federatedmedia.com/contact-us/) to see how Federated Media can create, manage and optimize email marketing efforts and complement your digital and radio advertising.
### Written by [Federated Media](https://blog.federatedmedia.com/author/federated-media)
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