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The Hidden Power of Owned Channels: Why Email Marketing Outperforms Social Media ROI
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From your Instagram page to your company website, there are many paths to reach your target audience. However, only owned marketing channels offer complete authority over your brand’s message. Owned channels are one of the most powerful methods for engaging all your customers, past, present and future. Below, we’ll explain what owned channels are, how they operate in relationship to other marketing channels and which best practices to implement for better audience engagement.
This article is sponsored by Campaign Monitor.
Understanding owned vs. rented channels
Your marketing channels are how you communicate with your audience. These channels can be owned or rented, depending on who controls how your message reaches users.
- Owned channels: Owned channels are the ones you manage directly, such as your email account or website. You have the final say over when and how your audience receives your content, and you’re not at the mercy of a third-party.
- Rented channels: With rented channels like social media platforms, you have to surrender some control to a third party. When you share content on rented channels, you can’t predict where the algorithm is going to place your content on your target audience’s feeds.
How owned and rented channels work together
Owned and rented channels are both vital to a successful content strategy. If you want to build your brand, it’s important to understand how owned and rented channels work in harmony. Rented marketing channels often play a role in pointing prospective customers toward your owned channels.
Rented marketing channels, from organic posts to paid ads, help you meet your audience where they’re at. As present and future customers scroll on their favorite social platforms, your brand has the opportunity to catch their attention. Once you’ve engaged your audience on social media, you can direct them toward your owned channels.
Email marketing is one of the most beneficial owned channels for connecting with your core audience. You’ll not only have the chance to show off your unique written and visual brand voice. You’ll also have full control over the makeup of your audience since your email list is entirely in your hands.
As you build your contact list over time, you’ll be able to build personalized messaging tailored to specific audience segments. Good email list management practices are all about balancing engaging content with strong data hygiene.
The risks of relying on rented channels
There are risks associated with relying solely on rented channels, which is why it’s best to ultimately funnel users toward your owned channels. Here are some rented channel challenges to be aware of:
Algorithm changes and reach collapse
Social media can seem like an incredible free marketing tool, but these days there is an increasing price for businesses trying to stand out among the noise. With so many brands vying for attention on social media, content saturation is diluting the potency of organic reach. In 2024, for example, Instagram’s average reach was less than 5%.
On top of that, you’re competing with paid content that’s been given favorability in an algorithm that’s already difficult to forecast. One small behind-the-scenes tweak to a platform’s algorithm can deprioritize your content, undoing years of hard work. Brands struggling with organic engagement are then faced with the choice of fighting the current or investing in paid content.
Platform policy changes and account risks
It’s not just the algorithm that’s being constantly updated. Social platforms are continuously making changes to their policies and terms of service, leaving businesses scrambling to keep up. Compliance with these policies becomes one more thing your team needs to stay on top of so you don’t risk penalties, including possible account suspension.
Whether initiated by the platform itself or influenced by regulatory changes, social platforms can change the way businesses access and use their data at any given time. If you’re relying entirely on social media analytics to drive your marketing strategy, you never know when a policy update is going to suddenly force you to change plans.
Limited data access and personalization
When you don’t own your audience data, targeting your message appropriately becomes a guessing game. You don’t know the demographics you’re speaking to and you don’t have the behavioural insight needed to schedule your content for maximum impact. While most social platforms do provide a direct line of communication when your audience wants to reach you, you can’t control when you’ll be able to reach them.
Email marketing allows you to have full reign over your subscriber list and the results speak for themselves. Email audiences deliver an average ROI of over $35 for every $1 spent, while social media’s returns average less than $3 for every $1 spent.
Marketing platforms with analytic features empower you to make the most out of your subscriber list. Unlike with social channels, you can see when subscribers open your emails and all of the elements they actively engaged with, so you have the knowledge needed to build effective email marketing campaigns.
Building your owned channel strategy with email marketing
Email can give you impressive results, but an intentional approach is key to making an impact.
Strategic list building fundamentals
It’s not enough to create a signup form and send out a newsletter; you have to show your subscribers real value if they’re going to opt in. Maybe you increase interest and engagement through exclusive content or boost sales through special deals for subscribers only. Whatever you use as motivation should align with your brand goals and drive conversions.
Cross-channel integration for maximum impact
Leverage your rented channels to grow your audience and increase engagement across all channels. Beyond using your rented channels to drive consumers to your owned channel content, a strong cross-channel strategy means looking at how each channel can support the other. Marketing platform integrations can help you grow your email list across your rented channels, letting you track leads through Facebook and even sync your email lists for ad retargeting across social platforms.
Segmentation for personalized value
Segmenting your audience and tailoring your content gives you a greater chance at broadcasting messages that truly resonate. Audiences expect it, too; as many as 71% of customers want personalized interactions from their favorite brands.
The more user data you have available, the easier it is to personalize your communications. Segmentation tools let you take a deep dive into user behavior and preferences, so you can precisely identify your target audience. In some cases, you can drill down into how each individual has interacted with past campaigns, giving you a glimpse into what’s needed for future campaign success.
Content strategies that convert followers to subscribers
Posts that tease your newsletter content or highlight discounts for subscribers are key to turning social followers into email subscribers. Create a sense of FOMO with the promise of a look behind the scenes or the chance to unlock benefits other customers can’t access.
Remember, if you’re offering premium content, it’s essential to present it in a high-quality format. Email templates simplify the process with a glossy finish. Some platforms give you the power to customize your templates according to your brand guidelines, letting you maintain consistency through each campaign.
Lead magnet development and promotion
Successful lead generation requires a deep understanding of your target audience so you know how to draw them in. Lead magnets attract customers that want content with useful tips and insights. When you publish materials that provide real value to your customers, such as educational materials or courses, you provide a powerful incentive to opt-in. And your rented channels are an effective tool for promoting these resources.
Cross-platform campaign coordination
Your marketing platform is central to supporting a seamless experience for audience members that find your owned channels through social platforms. Coordinate your campaigns so that when social traffic is leading to new subscribers, your message reaches them at their most engaged.
For instance, marketing automation allows you to trigger emails for new subscribers, so when someone signs up, they instantly get a warm welcome from your brand. Time your efforts right to make an impact and start a customer relationship off on the right foot.
Common owned channel building mistakes
Avoid these mistakes and common email marketing challenges to get the most out of one of your most valuable owned channels.
Focusing on quantity over quality
Building a long contact list doesn’t necessarily equate with generating a strong base of subscribers. A high quality email address list consists of actively engaged subscribers who chose to sign up. Many businesses make the mistake of taking a shortcut and purchasing contact data for their subscriber list, one of the biggest no-nos when it comes to email list management best practices.
At best, this strategy runs the risk of having your emails automatically filtered as spam or annoying customers with impersonal messages. If they didn’t opt-in, you could leave a lasting bad impression that makes them steer clear of your brand going forward. At worst, you could be violating privacy regulations meant to protect consumers, putting your brand at legal risk. Instead of wasting valuable funds on low-quality lists, invest in a cross-channel strategy that makes audiences eager to opt-in.
Treating email like social media
Although your owned and rented channels work in symbiosis, it’s important to remember that your communication strategy for one channel may not perfectly translate to the other. While social posts are meant to engage a wide range of followers, consumers expect emails to be personal.
If your marketing platform offers personalization tools, don’t let them go to waste. The best marketing platforms feature robust data tracking capabilities, so you can deliver communications that directly speak to customer preferences.
Neglecting list hygiene and engagement
Your subscriber list is not something you can set and forget. Regular reevaluation gives you insight into which subscribers still actively engage and who is leaving your emails unread.
Good list hygiene means removing invalid email addresses as messages bounce back. After cleaning up your list, you can work to win back valid contacts who haven’t engaged in a long time. Reengagement email campaigns are a great opportunity to employ targeted, value-driven messaging that reminds customers why they chose to engage with your brand in the first place.
The better your list management practices are, the more effective your owned channel strategies will be at making the right impression. Email marketing can have incredible influence on your customer relationships if you know how to use every tool in your toolbox correctly.