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How to Use the 3 Most Common Direct Marketing Measurements to Increase Your Profits!


John Wanamaker, a 19th century entrepreneur, once famously made the statement, "I know that half of my advertising is wasted, I just don't know which half." Fortunately for today's marketers, there are scientific ways to determine which half is wasted, and which half is not, through the use of common direct marketing measurements.

Advertising is, and has always been, part art and part science. With direct marketing, the science part takes center stage as there are common direct marketing measurements that can be utilized to verify the results of the advertising.

With the increased popularity of direct marketing, the success of advertising can be measured through a variety of common direct marketing methods such as cost per acquisition, cost per piece, and response rate.

Before continuing in describing these common direct marketing measurements in detail, it is beneficial to review one of the direct marketing tools needed to determine the success of the mailing. The most important direct marketing tool is the response mechanism. This is how you can gauge the success, or lack of success, of a direct mail campaign. This is the mechanism by which the prospect will use to respond - it may be a postcard to request more information, an 800 number to call, or a website address to place an order. You can than utilize this response to determine the success of the direct mailing.

The first of the most common direct marketing measurements is the cost per acquisition. The cost per acquisition can be determined by taking the total cost of the mailing and dividing it by the number of responses. For example, let's say the total cost of a mailing is $2,000 and 20 people respond. The cost per acquisition is $100. This is an important tool to find out if the cost to obtain a new customer is in line with the profits that you will receive.

The second of the most common direct marketing measurements is the cost per piece. To find the cost per piece, you would take the total cost of the mailing and divide it by the total number of pieces sent. For example, if the total cost of the mailing was $4,500 and you sent 2000 direct mail pieces, the cost per piece would be $2.25. This is an important figure to keep in mind, because by lowering the cost per piece (as long as the number of responses stays the same), you can lower the cost per acquisition.

The third of the most common direct marketing measurements is the response rate. The response rate can be calculated by taking the number of people that responded and dividing it by the number of people that were sent the direct mail package. For example, if 2000 people were mailed a direct mail package and 20 people responded, the response rate would be 1%. This is an important tool that you can utilize to forecast the success of future mailings.

By using all three of these common direct marketing measurements, you can finally determine which half of your marketing is working, and which half is not.

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Todays News by officejax free advertising and ad exchange solutionsMORE RESOURCES updated Wed. May / 22 / 2024

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Google unveils AI-powered advertising tools at Google Marketing Live  MarTech

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Vidhya Srinivasan Has the Hardest Job in Advertising  Adweek

New ways Google AI can improve ads performance and creativity - The Keyword | Google Product and Technology News
New ways Google AI can improve ads performance and creativity  The Keyword | Google Product and Technology News

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Drug advertisements will look different as new FDA rule takes effect Monday  Washington Examiner

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An artist reckons with the dangerous power of advertising and iconography  CNN

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Joe Rogan-backed company sued for peddling supplements with 'false' advertising  The Independent

Bumble, Apple, and the art of the advertising apology - Fast Company
Bumble, Apple, and the art of the advertising apology  Fast Company

It's becoming impossible for game publishers to avoid the question of advertising inside premium titles - Digiday
It's becoming impossible for game publishers to avoid the question of advertising inside premium titles  Digiday

Recent Target class actions allege false advertising, data collection, more - Top Class Actions
Recent Target class actions allege false advertising, data collection, more  Top Class Actions

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Grace Beverly broke advertising rules with Tala posts  BBC.com

Digital Out of Home (DOOH) & In-Store Retail Media Playbook - IAB
Digital Out of Home (DOOH) & In-Store Retail Media Playbook  IAB

NBC Taps Big Advertisers to Support ‘SNL’ 50th Season - Variety
NBC Taps Big Advertisers to Support ‘SNL’ 50th Season  Variety

Out-of-state abortion pill providers must stop advertising and sales in Arkansas, AG orders • Arkansas Advocate - Arkansas Advocate
Out-of-state abortion pill providers must stop advertising and sales in Arkansas, AG orders • Arkansas Advocate  Arkansas Advocate

As Roblox expands its advertising network, child safety concerns are on the horizon - Digiday
As Roblox expands its advertising network, child safety concerns are on the horizon  Digiday

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Despite Advertising Carbon Capture, ExxonMobil Saw Marginal Role for It in Fighting Climate Change  DeSmog

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Griffin accuses 2 organizations of advertising sale of abortion pills in Arkansas, sends cease and desist letters ...  Arkansas Online

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INDIANA BOROUGH COUNCIL APPROVES ADVERTISING UPDATES TO TRANSIENT BUSINESS ORDINANCE  wccsradio.com

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When Cookies Go Away, You'll Be Glad You Mastered These 3 Advertising Alternatives  Inc.

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How Advertisers Might Handle Over-Attribution; Political Ads Still Hinge On Linear  AdExchanger

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Google enhances product search, advertising with AI  Chain Store Age

Press Release - City Advertising for Opening on Framingham Planning Board - framinghamsource.com
Press Release - City Advertising for Opening on Framingham Planning Board  framinghamsource.com

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Advertising in the Baltics - statistics & facts  Statista

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Attorney general threatens groups advertising abortion pills in Arkansas  Arkansas Times

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Governor Signs Bill to Eliminate Junk Fees, Mandating Full Disclosure in Advertising  KNSI

Inclusion drops in Advertising Council’s DE&I census: ‘Average is not good enough’ | Analysis - Campaign Asia
Inclusion drops in Advertising Council’s DE&I census: ‘Average is not good enough’ | Analysis  Campaign Asia

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Arkansas asks abortion pill companies to stop advertising or face possible lawsuits  THV11.com KTHV

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Exploring textual–visual strategies in internet-based light food advertising: a study of Taobao advertisements in China ...  Nature.com

Digital marketing & advertising industry: current trends, major players, latest data - eMarketer
Digital marketing & advertising industry: current trends, major players, latest data  eMarketer

Google rolls out more tools for advertisers — including new formats for AI-generated search - Digiday
Google rolls out more tools for advertisers — including new formats for AI-generated search  Digiday

Veritonic Debuts Cross-Podcast Listener Measurement for Brands, Platforms, and Advertisers - Business Wire
Veritonic Debuts Cross-Podcast Listener Measurement for Brands, Platforms, and Advertisers  Business Wire

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Putting Truth Social's 'Nascent Advertising Initiative' in Perspective  WhoWhatWhy

Mississippi Lottery Offers Advertising RFP Opportunity - WCBI
Mississippi Lottery Offers Advertising RFP Opportunity  WCBI

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Havas Health names global network Jacques after advertising legend  MM+M Online

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RIP surveillance advertising — you won’t be missed  The Media Leader

Squirrel Media buys advertising agency IKI Group: Advisors - Iberian Lawyer
Squirrel Media buys advertising agency IKI Group: Advisors  Iberian Lawyer

Griffin tells abortion pill companies to stop advertising in Arkansas - The Center Square
Griffin tells abortion pill companies to stop advertising in Arkansas  The Center Square

Advertising: How food is responding to changes - FoodNavigator.com
Advertising: How food is responding to changes  FoodNavigator.com

Veritonic Unveils Cross-Podcast Listener Measurement for Brands, Platforms, Advertisers. - Insideradio.com
Veritonic Unveils Cross-Podcast Listener Measurement for Brands, Platforms, Advertisers.  Insideradio.com

May 29 edition advertising deadlines | News | iosconews.com - Iosco County News Herald
May 29 edition advertising deadlines | News | iosconews.com  Iosco County News Herald

My Creative Hero: The Advertising Giants of The 80s | LBBOnline - Little Black Book - LBBonline
My Creative Hero: The Advertising Giants of The 80s | LBBOnline  Little Black Book - LBBonline

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ASA Files: Denigrating Competitors 'Isn't A Good Look' For Advertisers  HBW Insight

Attorney General Griffin issues cease and desist letters to abortion pill companies advertising in Arkansas - Mountain Home Observer
Attorney General Griffin issues cease and desist letters to abortion pill companies advertising in Arkansas  Mountain Home Observer

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Calling Out Gender Bias: Advertising Coalition Demands Meta Address Bias in Women's Health Ad Review Process  MyChesCo

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The best print ads of all time  Creative Bloq

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Beware of fake Facebook account 'Jackline Hope' advertising bogus job offers  Africa Check

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What you need to know about non-endemic retail media advertising  eMarketer

Baidu Earnings: Advertising Weakness Offset by Continued Growth In Cloud Business - Morningstar
Baidu Earnings: Advertising Weakness Offset by Continued Growth In Cloud Business  Morningstar

Google Expands Advertising Into AI Search Engine - Adweek
Google Expands Advertising Into AI Search Engine  Adweek

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Moms for Liberty to spend over $3 million targeting presidential swing state voters  The San Diego Union-Tribune

Outcomes Are Best Barometer of TV Advertising: A+E's Roseann Montenes – Beet.TV - BeetTV
Outcomes Are Best Barometer of TV Advertising: A+E's Roseann Montenes – Beet.TV  BeetTV

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KCAD Graphic Design students win top national honors in inaugural student OBIE Awards  Ferris State Torch

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OpenAI Inks Data, Advertising Deal With Reddit  Hollywood Reporter

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CMO Strategies: A guide to ad-supported streaming services, from the top platforms to marketing spend  Modern Retail

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Everyone Offers Tomorrow's Advertising Today (Upfronts) | Next TV  Next TV

Mississippi Lottery Offers Advertising RFP Opportunity | starherald.net • The Star-Herald • Kosciusko, Mississippi - Kosciusko Star Herald
Mississippi Lottery Offers Advertising RFP Opportunity | starherald.net • The Star-Herald • Kosciusko, Mississippi  Kosciusko Star Herald

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Arkansas Attorney General Tim Griffin sends cease and desist letters to companies advertising abortion pill access  KARK

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Indiana Borough Council opens bids for paving, Marsh Run, posts food truck rule for advertising  Indiana Gazette

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Open Letter to Mark Zuckerberg: Addressing Bias in Women's Health Advertising on Meta Platforms  GlobeNewswire

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Amazon’s First Upfront Is All About Advertising And Sports  AdExchanger

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UK Stop Ad Fraud Coalition Group Joins the Conscious Advertising Network (CAN) | LBBOnline  Little Black Book - LBBonline

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Unveiling the creative potential of podcast advertising: beyond the platform  The Media Leader

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OpenAI and Reddit Partner on Data Licensing, Advertising  PYMNTS.com

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Netflix advertising is booming: More than 40 million users are now on its ad-supported tier  Fast Company

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Vidmob Launches AI-Driven Diversity Reporting Tool  AiThority

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Key Trends in Advertising Management  MarTech Outlook

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Pepper raises $30 million in funding for AI and advertising improvements  Digital Commerce 360

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How Netflix and Amazon dominated the advertising upfronts  Los Angeles Times

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OpenAI partnering with Reddit on advertising and content  CNBC

Latrobe Bulletin wins big in statewide advertising awards - latrobebulletinnews.com
Latrobe Bulletin wins big in statewide advertising awards  latrobebulletinnews.com

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Jewelers Turning to Artificial Intelligence for Online Advertising  The New York Times

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Amid plague of ads on social media, China’s first advertising recalled  Post Magazine

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Food Advertising, Labeling, and Litigation Conference  Food and Drug Law Institute

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Advertising & Promotion for Medical Products Conference  Food and Drug Law Institute

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California Attorney General Bonta Secures Settlement Requiring Liberty Tax to Stop Deceptive Advertising  Sierra Sun Times

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CMOs at top US advertisers are leaving their roles sooner  eMarketer

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Student Wins Integrated Campaign Advertising Award | Royal News: May 15 2024  Scranton

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Lamar Advertising (NASDAQ:LAMR) Position Lifted by Vanguard Personalized Indexing Management LLC  Defense World

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Putting Ads Without Third-Party Cookies To The Test: A Roadmap To Advertising Durability  AdExchanger

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Netflix Upfront 2024: The Year of Growth and Momentum  About Netflix

Google set to bring ads in search AI Overviews - The Hindu
Google set to bring ads in search AI Overviews  The Hindu

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Bankrupt Red Lobster owes PFG $24.4m, advertising firm $13.4m  Undercurrent News

How Television Advertising Lost Its Relevance - The Wall Street Journal
How Television Advertising Lost Its Relevance  The Wall Street Journal

Webinar: Mainstreaming Cannabis: Branding and Advertising – Cannabis Industry - Duane Morris LLP
Webinar: Mainstreaming Cannabis: Branding and Advertising – Cannabis Industry  Duane Morris LLP

MP's Pitch to Ban Fossil Fuel Advertising Triggers Vicious Backlash, Death Threats - The Energy Mix
MP's Pitch to Ban Fossil Fuel Advertising Triggers Vicious Backlash, Death Threats  The Energy Mix

DoubleVerify: Security Advertising Play Has Proven Not So Secure (NYSE:DV) - Seeking Alpha
DoubleVerify: Security Advertising Play Has Proven Not So Secure (NYSE:DV)  Seeking Alpha

Students Claim BEST Award at National Student Advertising Competition - Drew University - Drew Today
Students Claim BEST Award at National Student Advertising Competition - Drew University  Drew Today

Netflix To Launch In-House Advertising Tech Platform - Next TV
Netflix To Launch In-House Advertising Tech Platform  Next TV

What's up with Google's new AI summary in search results? - Marketplace
What's up with Google's new AI summary in search results?  Marketplace

Yesterday's news? How advertisers can halt the publishing industry's decline - The Drum
Yesterday's news? How advertisers can halt the publishing industry's decline  The Drum

Google's YouTube Pitches Advertisers On Unskippable Ads 05/20/2024 - MediaPost Communications
Google's YouTube Pitches Advertisers On Unskippable Ads 05/20/2024  MediaPost Communications

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Willie Nelson & Waylon Jennings' 1996 Stuffed Crust Pizza Hut Commercial Is Advertising GOLD  Whiskey Riff

India's Zee Entertainment reports Q4 profit as advertising demand picks up - Reuters
India's Zee Entertainment reports Q4 profit as advertising demand picks up  Reuters

Baidu's core advertising remains weak in Q1, GenAI boost cloud revenue · TechNode - TechNode
Baidu's core advertising remains weak in Q1, GenAI boost cloud revenue · TechNode  TechNode

Mary Wells Lawrence, High-Profile Advertising Pioneer, Dies at 95 - The New York Times
Mary Wells Lawrence, High-Profile Advertising Pioneer, Dies at 95  The New York Times

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Waitrose hymns summer food (with a soggy element)  More About Advertising

Amazon announces new ad tech tool Signal IQ - Ad Age
Amazon announces new ad tech tool Signal IQ  Ad Age

Rumble sues Google over digital advertising practices - Reuters
Rumble sues Google over digital advertising practices  Reuters

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Navigating the world wide web in advertising | News  Yoursun.com

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Veritaas Advertising marks a stellar start on its debut after listing  Storyboard18

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TV companies flaunt ad tech and AI to persuade advertisers to spend  Reuters

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Why Invest in USD 9473.3 Billion Programmatic Display Advertising Market Growing at a CAGR of 35.8% Reach by  EIN News

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