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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 Fri. November / 22 / 2019

An Advertising Lesson From A Church In North Carolina - Forbes
An Advertising Lesson From A Church In North Carolina  Forbes

Google to Limit Who Can Be Targeted by Political Advertising - TIME
Google to Limit Who Can Be Targeted by Political Advertising  TIME

YouTube is working to bring advertising to edgier content as demonetization woes grow - The Verge
YouTube is working to bring advertising to edgier content as demonetization woes grow  The Verge

Global Geomarketing Software Market 2020-2024 | Use of AI in Digital Advertising to Boost Growth | Technavio - Business Wire
Global Geomarketing Software Market 2020-2024 | Use of AI in Digital Advertising to Boost Growth | Technavio  Business Wire

Asiaray is Awarded Exclusive Concession Rights to Operate Advertising and Media Resources of KMB and LWB - Yahoo Finance
Asiaray is Awarded Exclusive Concession Rights to Operate Advertising and Media Resources of KMB and LWB  Yahoo Finance

Facebook Mulls Tightening Its Political-Advertising Policy - TheStreet.com
Facebook Mulls Tightening Its Political-Advertising Policy  TheStreet.com

Google Restricts Political Advertising On Its Platform - Yahoo Finance
Google Restricts Political Advertising On Its Platform  Yahoo Finance

Facebook is considering changes to its policy on political advertising: WSJ - MarketWatch
Facebook is considering changes to its policy on political advertising: WSJ  MarketWatch

Creative leaders join Conscious Advertising Network to combat ad abuse - Prolific London
Creative leaders join Conscious Advertising Network to combat ad abuse  Prolific London

We Need to Fix Online Advertising. All of It. - Slate
We Need to Fix Online Advertising. All of It.  Slate

Digital advertising is not the dot com bubble, improper attribution is - Marketing Land
Digital advertising is not the dot com bubble, improper attribution is  Marketing Land

"Out of Home Advertising": the billboards that spy on you as you move through public spaces - Boing Boing
"Out of Home Advertising": the billboards that spy on you as you move through public spaces  Boing Boing

The grey area around defining political advertisements in Washington State - Washington State Wire
The grey area around defining political advertisements in Washington State  Washington State Wire

14-year-old faces hate crime charges, accused of advertising 'slave for sale' - WSB Atlanta
14-year-old faces hate crime charges, accused of advertising 'slave for sale'  WSB Atlanta

Facebook launches new safety tools for advertisers as criticism continues over false political ads - CNBC
Facebook launches new safety tools for advertisers as criticism continues over false political ads  CNBC

Ryan Reynolds puts Samsung, Netflix, and Aviation Gin in one ad - Fast Company
Ryan Reynolds puts Samsung, Netflix, and Aviation Gin in one ad  Fast Company

Fearless: How One Couple Launched The Largest Independent, Hispanic-Owned U.S. Advertising Agency - Forbes
Fearless: How One Couple Launched The Largest Independent, Hispanic-Owned U.S. Advertising Agency  Forbes

Digital Advertising Performance Reporting Touches Down in Web App for Airport Media Programs - PRNewswire
Digital Advertising Performance Reporting Touches Down in Web App for Airport Media Programs  PRNewswire

Is The Future Of Digital Advertising Conversational? - Forbes
Is The Future Of Digital Advertising Conversational?  Forbes

Why Mobile In-Game Advertising Is Taking Off and the Different Ad Formats Available - eMarketer
Why Mobile In-Game Advertising Is Taking Off and the Different Ad Formats Available  eMarketer

Programmatic advertising must handle more complex media-buying decisions, study says - Marketing Dive
Programmatic advertising must handle more complex media-buying decisions, study says  Marketing Dive

Global Blockchain in Media, Advertising & Entertainment Market 2019-2024: Anticipating a CAGR of 82% During the Forecast Period - ResearchAndMarkets.com - Business Wire
Global Blockchain in Media, Advertising & Entertainment Market 2019-2024: Anticipating a CAGR of 82% During the Forecast Period - ResearchAndMarkets.com  Business Wire

3 Auctions Rule Digital Advertising. Here's A Guide To Navigating Them - AdExchanger
3 Auctions Rule Digital Advertising. Here's A Guide To Navigating Them  AdExchanger

Is Ben & Jerry's misleading consumers? Lawsuit says 'happy cow' representation not quite true - USA TODAY
Is Ben & Jerry's misleading consumers? Lawsuit says 'happy cow' representation not quite true  USA TODAY

Romer: The case for investing in advertising - Vail Daily News
Romer: The case for investing in advertising  Vail Daily News

Study Highlights “Five Secrets for Automotive Advertisers” - Radio World
Study Highlights “Five Secrets for Automotive Advertisers”  Radio World

Airport advertising performance reporting app launches - Passenger Terminal Today
Airport advertising performance reporting app launches  Passenger Terminal Today

David Lynch-directed advertisement for Playstation welcomes you to The Third Place - Boing Boing
David Lynch-directed advertisement for Playstation welcomes you to The Third Place  Boing Boing

G5 Launches New Cross-Channel Spend Optimizer That Improves Digital Advertising Performance Up To 25% - MarTech Series
G5 Launches New Cross-Channel Spend Optimizer That Improves Digital Advertising Performance Up To 25%  MarTech Series

In-Stadium Video Advertising Gains Traction Across MiLB and NASCAR - Front Office Sports
In-Stadium Video Advertising Gains Traction Across MiLB and NASCAR  Front Office Sports

XITE Taps Beachfront for Set-Top Advertising Assist - Light Reading
XITE Taps Beachfront for Set-Top Advertising Assist  Light Reading

Citrus College Wins Advertising, Marketing, Social Media Awards - Patch.com
Citrus College Wins Advertising, Marketing, Social Media Awards  Patch.com

Google to Restrict User Information It Gives Advertisers - The Wall Street Journal
Google to Restrict User Information It Gives Advertisers  The Wall Street Journal

APEX's ARC Committee Spreads the Word About In-Flight Advertising - APEX Media
APEX's ARC Committee Spreads the Word About In-Flight Advertising  APEX Media

SEC Proposes Overhaul Of Advertising And Solicitation Rules For Investment Advisers - Corporate/Commercial Law - United States - Mondaq News Alerts
SEC Proposes Overhaul Of Advertising And Solicitation Rules For Investment Advisers - Corporate/Commercial Law - United States  Mondaq News Alerts

Report: Programmatic advertising not fully automated | - Advanced Television
Report: Programmatic advertising not fully automated |  Advanced Television

AI in advertising captures audiences with personalized ads - TechTarget
AI in advertising captures audiences with personalized ads  TechTarget

Milwaukee advertising exec Bill Eisner dies - Milwaukee Business Journal
Milwaukee advertising exec Bill Eisner dies  Milwaukee Business Journal

Case: False Advertising & Unfair Competition/Pleadings (D. Ariz.) - Bloomberg Law
Case: False Advertising & Unfair Competition/Pleadings (D. Ariz.)  Bloomberg Law

Twitter's ban on paid political advertisement comes into effect - Lexology
Twitter's ban on paid political advertisement comes into effect  Lexology

How Effective Is Facebook Advertising? - Mother Jones
How Effective Is Facebook Advertising?  Mother Jones

The Advertising Industry Has a Problem: People Hate Ads - The New York Times
The Advertising Industry Has a Problem: People Hate Ads  The New York Times

The Ad Screens on Ride-Hail Cars Collect Data, Too - CityLab
The Ad Screens on Ride-Hail Cars Collect Data, Too  CityLab

NBCU Moves To Unify Cross-Platform Advertising With New Senior Executive Position 11/21/2019 - MediaPost Communications
NBCU Moves To Unify Cross-Platform Advertising With New Senior Executive Position 11/21/2019  MediaPost Communications

The Culture Gabfest on The Irishman, Schitt's Creek, and targeted advertising. - Slate
The Culture Gabfest on The Irishman, Schitt's Creek, and targeted advertising.  Slate

The Irresistible Visual Power of Urban Advertising - CityLab
The Irresistible Visual Power of Urban Advertising  CityLab

Redesigned Microsoft Advertising Editor now available - Search Engine Land
Redesigned Microsoft Advertising Editor now available  Search Engine Land

Harvard Economist Calls for Outlaw of Online Advertising Markets—Just Like the Trade of ‘Organs, Babies, or Slaves’ - Fortune
Harvard Economist Calls for Outlaw of Online Advertising Markets—Just Like the Trade of ‘Organs, Babies, or Slaves’  Fortune

Microsoft Advertising talks intelligence, UI updates, audience solutions in SMX keynote - Search Engine Land
Microsoft Advertising talks intelligence, UI updates, audience solutions in SMX keynote  Search Engine Land

Consolidation rocks WPP, Amazon's next advertising star, and the story behind Taboola and Outbrain's tie-up - Business Insider
Consolidation rocks WPP, Amazon's next advertising star, and the story behind Taboola and Outbrain's tie-up  Business Insider

The convergence of advertising and marketing - MIT Technology Review
The convergence of advertising and marketing  MIT Technology Review

Google to Place Limits on Political Advertisements ahead of 2020 Election - National Review
Google to Place Limits on Political Advertisements ahead of 2020 Election  National Review

Getting rid of microtargeting in political advertising is a terrible idea - The Washington Post
Getting rid of microtargeting in political advertising is a terrible idea  The Washington Post

Netflix pulls Spectator advertising after social media backlash - Scram News
Netflix pulls Spectator advertising after social media backlash  Scram News

New York Times Co. Advertising Drops as ‘Turbulence’ Hits Digital Market - The New York Times
New York Times Co. Advertising Drops as ‘Turbulence’ Hits Digital Market  The New York Times

Google is putting new limits on political ads, restricting advertisers - Business Insider Nordic
Google is putting new limits on political ads, restricting advertisers  Business Insider Nordic

Long Branch scam is advertising fake home rentals, cops say - Asbury Park Press
Long Branch scam is advertising fake home rentals, cops say  Asbury Park Press

Trivago’s Incoming CEO Gets Busy Tweaking Its Advertising Strategy - Skift
Trivago’s Incoming CEO Gets Busy Tweaking Its Advertising Strategy  Skift

All About 'Fellow,' VB&P's Community App for Women in Advertising - Muse by Clio
All About 'Fellow,' VB&P's Community App for Women in Advertising  Muse by Clio

Political Advertising on Facebook Is Different Than Normal Political Advertising - The Bulwark
Political Advertising on Facebook Is Different Than Normal Political Advertising  The Bulwark

Advertising on Car Window Helps Woman Find a Kidney Donor - NBC 5 Dallas-Fort Worth
Advertising on Car Window Helps Woman Find a Kidney Donor  NBC 5 Dallas-Fort Worth

Twitter, the RC Cola of campaign advertising, will no longer accept campaign ads - The Washington Post
Twitter, the RC Cola of campaign advertising, will no longer accept campaign ads  The Washington Post

State investigating marijuana advertising at Lewiston Colisée - Press Herald
State investigating marijuana advertising at Lewiston Colisée  Press Herald

Apple Stock Gets Price-Target Hikes As Advertising Business Touted - Investor's Business Daily
Apple Stock Gets Price-Target Hikes As Advertising Business Touted  Investor's Business Daily

25 Fascinating Years of Digital Advertising [Infographic] - Social Media Today
25 Fascinating Years of Digital Advertising [Infographic]  Social Media Today

Sinclair leads $10.3M investment in rideshare advertising startup Octopus - TechCrunch
Sinclair leads $10.3M investment in rideshare advertising startup Octopus  TechCrunch

Apple's ad agency has layoffs as the company beefs up its in-house ads group - CNBC
Apple's ad agency has layoffs as the company beefs up its in-house ads group  CNBC

Integral Ad Science Buys Technology Firm to Help Advertisers Avoid Objectionable Content - Wall Street Journal
Integral Ad Science Buys Technology Firm to Help Advertisers Avoid Objectionable Content  Wall Street Journal

Advertising bets on a team's Twitter account? Welcome to sports gambling in 2019 - Pittsburgh Post-Gazette
Advertising bets on a team's Twitter account? Welcome to sports gambling in 2019  Pittsburgh Post-Gazette

Politics will drive billions in local advertising spending in 2020: Report - Fox Business
Politics will drive billions in local advertising spending in 2020: Report  Fox Business

Walmart is rolling out tools and API to grab Amazon advertisers - Business Insider
Walmart is rolling out tools and API to grab Amazon advertisers  Business Insider

Roku Doubles Down on Advertising Tech - Motley Fool
Roku Doubles Down on Advertising Tech  Motley Fool

Public-funded Oroville Dam advertising called ‘propaganda.’ Here’s how much it cost - Sacramento Bee
Public-funded Oroville Dam advertising called ‘propaganda.’ Here’s how much it cost  Sacramento Bee

TripAdvisor Journeys Into Non-Travel Advertising - AdExchanger
TripAdvisor Journeys Into Non-Travel Advertising  AdExchanger

Charity Advertising & Marketing Partners - The Dallas Morning News
Charity Advertising & Marketing Partners  The Dallas Morning News

How to Invest in Digital Advertising - The Motley Fool
How to Invest in Digital Advertising  The Motley Fool

Bernie Sanders Is Flush With Cash. Here’s How He Plans to Spend It. - The New York Times
Bernie Sanders Is Flush With Cash. Here’s How He Plans to Spend It.  The New York Times

The Problem of Political Advertising on Social Media - The New Yorker
The Problem of Political Advertising on Social Media  The New Yorker

One bright spot in Amazon's ugly quarter — its advertising business is growing like crazy - CNBC
One bright spot in Amazon's ugly quarter — its advertising business is growing like crazy  CNBC

5G Will Reshape Advertising Data - AdExchanger
5G Will Reshape Advertising Data  AdExchanger

Cynopsis Media Presents: Advanced TV Advertising and the New Power of Local - cynopsis.com
Cynopsis Media Presents: Advanced TV Advertising and the New Power of Local  cynopsis.com

The Rise of Advertising on Ecommerce Marketplaces: 5 Tips to Get Ahead - Search Engine Journal
The Rise of Advertising on Ecommerce Marketplaces: 5 Tips to Get Ahead  Search Engine Journal

Lawsuit Against Facebook Uses Public Accommodation Law to Challenge Advertising - Forbes
Lawsuit Against Facebook Uses Public Accommodation Law to Challenge Advertising  Forbes

Why Twitter’s New Restrictions on Political Advertising Make No Sense - National Review
Why Twitter’s New Restrictions on Political Advertising Make No Sense  National Review

Allan Kalish, 94, an advertising icon who ‘should have been a third baseman for the Phillies’ - The Philadelphia Inquirer
Allan Kalish, 94, an advertising icon who ‘should have been a third baseman for the Phillies’  The Philadelphia Inquirer

US Advertisers Will Allocate Nearly $7 Billion to Connected TV This Year - eMarketer
US Advertisers Will Allocate Nearly $7 Billion to Connected TV This Year  eMarketer

The Rundown: Advertisers mull how much digital advertising is too much - Digiday
The Rundown: Advertisers mull how much digital advertising is too much  Digiday

Amazon CFO Talks One-Day Shipping, Torrid Advertising Growth, and More - The Motley Fool
Amazon CFO Talks One-Day Shipping, Torrid Advertising Growth, and More  The Motley Fool

The Rundown: We've always hated advertising - Digiday
The Rundown: We've always hated advertising  Digiday

WPP comparable sales rise as advertising backs 2019 guidance - MarketWatch
WPP comparable sales rise as advertising backs 2019 guidance  MarketWatch

Democratic Strategists Set Up $75 Million Digital Campaign to Counter Trump - The New York Times
Democratic Strategists Set Up $75 Million Digital Campaign to Counter Trump  The New York Times

Newspaper Advertising Market Procurement Intelligence Report | Newspaper Advertising Price Trends, Newspaper Advertising Suppliers and Procurement Insights Now Available from SpendEdge - Business Wire
Newspaper Advertising Market Procurement Intelligence Report | Newspaper Advertising Price Trends, Newspaper Advertising Suppliers and Procurement Insights Now Available from SpendEdge  Business Wire

Help us chart Amazon’s growth as an advertising platform - Search Engine Land
Help us chart Amazon’s growth as an advertising platform  Search Engine Land

Advertisers flood World Series for D.C. opinion leaders - Axios
Advertisers flood World Series for D.C. opinion leaders  Axios

California Sues Juul, Alleging E-Cigarette Maker Targets Teens With Vaping Advertisements In New Lawsuit - CBS Los Angeles
California Sues Juul, Alleging E-Cigarette Maker Targets Teens With Vaping Advertisements In New Lawsuit  CBS Los Angeles

Executive Spotlight: Lamar Advertising Company's Jay Johnson - Greater Baton Rouge Business Report
Executive Spotlight: Lamar Advertising Company's Jay Johnson  Greater Baton Rouge Business Report

The SEC brings its adviser advertising rules into the internet age - InvestmentNews
The SEC brings its adviser advertising rules into the internet age  InvestmentNews

To help ward off Amazon, CPG advertisers are seeking data relationships with retailers - Digiday
To help ward off Amazon, CPG advertisers are seeking data relationships with retailers  Digiday

Advertisers emerge as buyers for ad tech - Digiday
Advertisers emerge as buyers for ad tech  Digiday

Learn Digital Advertising Essentials and Stay Ahead of the Game - Entrepreneur
Learn Digital Advertising Essentials and Stay Ahead of the Game  Entrepreneur

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