Email marketing has been the prime weapon for digital marketing success, and when it comes to ensuring secured email delivery, there are a range of SMTP options. However, choosing the right email delivery service provider is important to meet your needs.
Now, when it comes to offering quality SMTP service, two names have always been on the list of top SMTP service providers: Mailgun and SendGrid. There is also a possibility that you might be using another SMTP service company. So, the question that arises here is which one is better? Mailgun, Sendgrid, or your SMTP service provider.
In this post, we will compare these three email delivery services to help you make the right decision. Let us start with the basics.
Understanding the Basics
Mailgun
Built for developers, Mailgun is a third-party email service provider that is ideal for transactional email delivery service. This tool offers tailored solutions based on your business strategy.
SendGrid
Just like Mailgun, SendGrid is also a third-party email service company. It offers a cloud-based infrastructure for sending, tracking, and managing email.
Your SMTP Service
Your SMTP service provider may be the one from whom you have bought hosting. It may be ideal for sending bulk emails but may lack personalization.
Let us now have a detailed look at each of these to understand the advantages and pitfalls.
Mailgun – Built for Developers and High-Volume Senders
Mailgun is a complete email automation tool that provides an intuitive and user-friendly interface to track, manage, and optimize email delivery. This SMTP service company works best for businesses that send a lot of transactional and programming emails, such as SaaS companies.
Advantages of Mailgun
Best for Transactional Emails
If you are looking for a smooth and timely email delivery, Mailgun tops the list.
Detailed Analytics
The best part about Mailgun is that it provides a detailed report of email campaigns, helping you track delivery, open rates, click-through rates, and more.
Flexible API
The API of Mailgun is well-made and allows easy integrations to various apps and tools.
Powerful Email Validation Tools
This SMTP service company helps reduce bounce rates and improve email delivery.
Disadvantages of Mailgun
Developer-Centric
Designed keeping developers in mind, Mailgun is best for people who are comfortable writing codes or working with APIs. Otherwise, it can feel irritating.
May Not Be Cost-Effective
Mailgun has a free trial option, but if you need to try out its advanced features or want to increase email sending limits, it can be a costly affair.
SendGrid – Ideal for Marketing Purposes
SendGrid is a powerful email marketing tool for marketers that allows seamless creation and optimization of email campaigns to maximize performance. It is praised for being a reliable, scalable, and versatile SMTP tool. SendGrid has a simple email editor and intuitive interface to make things smooth and easy.
Advantages of SendGrid
Easy Integration
SendGrid allows easy integration with other CRM software and tools you use to maximize its performance.
User-Friendly Dashboard
One of the key parameters why marketers love SendGrid to send marketing emails is its user-friendly dashboard. This makes it ideal for even non-technical users.
Top Email Marketing Capabilities
SendGrid’s email marketing features make it a top email delivery tool. From advanced segmentation to A/B testing, it features everything marketers need to set up a converting email marketing campaign.
Top Reputation and High Deliverability
SendGrid is known to have strong relationships with top ISPs that ensure high deliverability rates.
Disadvantages of SendGrid
Learning Curve
While powerful, it takes a bit of time to get the most out of the platform.
Customer Support Can Be Hit or Miss
Some users report long wait times or support that’s too “templated.”
Your SMTP Service Provider
Your SMTP service provider might be lacking some of these features, especially if it is not reliable. However, it may be suitable for your business needs. Compare the features of your SMTP server with Mailgun and SendGrid to get a better idea.
Advantages of Your SMTP Service
Cost-effective
If you already have a server, you may not need to pay extra.
Full control
You manage security, limits, logging, and everything else.
No third-party dependencies
You’re not tied to external pricing or APIs.
Disadvantages of Your SMTP Service
Deliverability challenges
ISPs are strict. Without proper SPF, DKIM, and IP reputation, your emails may get flagged as spam—or blocked entirely.
No built-in analytics
You may not get fancy dashboards or delivery tracking unless you build them yourself.
Maintenance burden
You may be responsible for uptime, software updates, blacklisting issues, and more.
Deliverability: The Make-or-Break Factor
When choosing an email service, deliverability should be a top priority. It doesn’t matter how beautifully designed your email is—if it doesn’t hit the inbox, it’s useless.
Mailgun and SendGrid both invest heavily in their infrastructure to ensure high deliverability. They maintain IP reputation, feedback loops, and compliance with spam laws.
Your SMTP server, on the other hand, depends entirely on how well you manage it. A misconfigured DNS record or a blacklisted IP can sabotage everything.
Which One Should You Choose?
Here’s a simplified decision flow to help you decide:
Are you a developer building a high-volume app? Go with Mailgun.
Are you a business owner or marketer who wants easy-to-use tools? Choose SendGrid.
Are you running a small website and sending low volumes of email? You might get away with your own SMTP server, especially for things like contact form notifications.
But if reliability, analytics, and professional-grade email features matter to you, it’s hard to beat Mailgun or SendGrid.
Final Thoughts
Email might seem straightforward on the surface, but getting it right takes careful planning. Whether you go with Mailgun, SendGrid, or your own SMTP server, the key is to align the tool with your goals and technical skill level.
If you’re just sending the occasional newsletter, your SMTP server might suffice. But if you’re scaling a product or running a serious marketing operation, the smart money is on a reliable, third-party service with a track record like Mailgun or SendGrid.
Choose wisely and send confidently.
