What is Channel ROI Comparison?
An email vs SMS marketing comparison evaluates the cost, reach, engagement, and conversion potential of each channel for your specific audience.
The Formula
Channel ROI = (Revenue from Channel − Channel Cost) ÷ Channel Cost × 100
Worked Example
A retailer: email costs $500/month reaching 10,000 subscribers generating $8,000. SMS costs $800/month reaching 3,000 generating $5,000.
- Email ROI: ($8,000 − $500) ÷ $500 × 100 = 1,500%
- SMS ROI: ($5,000 − $800) ÷ $800 × 100 = 525%
- Email revenue per contact: $0.80
- SMS revenue per contact: $1.67
📌 Email has higher total ROI but SMS generates 2x more revenue per contact, best strategy uses both channels.
Why This Matters
Channel diversification
Relying on one channel is risky. Businesses using both email and SMS see 25% higher overall marketing ROI.
Audience preferences
75% of consumers want to receive offers via SMS, but 80% also check email daily. Meet customers where they are.
Use case optimization
SMS excels at time-sensitive offers (98% open rate). Email excels at detailed content. Using the right channel for each message improves results.
Common Mistakes
❌ SMS for long content
SMS is for brief, urgent messages. Detailed content belongs in email where formatting and links work better.
❌ Same message on both channels
Each channel has different strengths. Adapt messaging format and length to the channel.
❌ Ignoring opt-in compliance
SMS has stricter consent requirements than email. Violating regulations risks $500K+ fines under TCPA.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| Email ROI | 36:1+ | 15-36:1 | Below 10:1 |
| SMS Open Rate | 95%+ | 90-95% | Below 85% |
| SMS Conversion | 8%+ | 3-8% | Below 2% |
Source: DMA Marketer Email Tracking Report 2025
Benchmark data sourced from DMA Marketer Email Tracking Report 2025.