Email marketing outperforms social media—and SMS can do the same.

Alex Salkever, former technology editor of BusinessWeek.com and former senior writer at AOL DailyFinance.com, shared on VentureBeat his expert perspective regarding “the ultimate cash-cow money machine” on the internet. It isn’t social media, he says. Nor behavioral or targeted ads. The ultimate killer-app money machine, according to Salkever, is the original platform for online communication: email.

Alex went through three “exhibits,” citing Groupon’s meteoric success to exemplify his point each step of the way. Two things resonated with us throughout the article: 1) the validity of his argument as he punched holes in the buzz-worthy social media marketing hype, and 2) the fact that each point he makes regarding the strength of an email marketing platform echoes precisely the strengths of SMS as a marketing channel.

Exhibit 1

Salkever’s argument: “suitably massive has generally trumped well-targeted in the online advertising space.”

Salkever’s example: Groupon is the social buying “big kahuna” and generates sales via outreach to an email subscriber base, not by engaging Twitter followers or Facebook fans.

The mobile parallel: why create flashy mobile apps for a small percentage of tech-savvy Smartphone users when 98% of mobile users nationwide can receive SMS messages? Reach the masses with an SMS marketing campaign, not a Smartphone app.

Exhibit 2

Salkever’s argument: “email captures intent better than any other form of advertising” because users must willingly enter their email address in order to subscribe to the newsletter or deals.

Salkever’s example: prime verticals (finance, travel, luxury goods) CPMs (cost per mille, or the amount earned for every 1,000 views) for email newsletters are four to five times higher than the CPMs for content advertised on those same publishers’ websites.

The mobile parallel: mobile marketing, where consumers willingly subscribe via a keyword and short code, works on the same opt-in subscription principle as email marketing.  Earn more per view by reaching an audience that explicitly wants to see your offers.

Exhibit 3

Salkever’s argument: email pulls in more revenue per subscriber than social networks.

Salkever’s example: Groupon’s gross revenue is already approaching what many estimate will be Facebook’s revenues.

The mobile parallel: don’t float your content ambiguously to your website visitors or social media networks. Instead, drive it into the palms of your opt-in audience and see greater revenue generation from them.

Social networks and niche marketing may be receiving all the chatter, but established, tried and true marketing platforms of email and SMS will give you tangible, increased revenue generation. Just listen to Salkever, and look at Groupon.

You can follow Chris on Twitter @WaterfallMobile or read more from him at Mobile Demystified.