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7/29/2019 Advertising Benchmarks for 2012
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How does your advertising and marketing response rate compare?
Benchmarks are the best way to measure relative performance in nearly every endeavor. Benchmarking is the practice
of comparing individual performance to best practices and averages. We do this all of the time in most aspects of life.
Quarterbacks are measured by their Passer Rating. Baseball players are measured by theirBatting Average. Pitchers
are measured by their Earned Run Average. Because of these, each player can be compared and ranked to determine
their effectiveness and how they should be properly managed.
Advertisers and marketers also have performance metrics. The primary measures of our performance include,
Response Rate, Cost per Lead, Cost per Order and Customer Acquisition Cost.
Each year the Direct Marketing Association publishes a Response Rate Reportwhich gives us the ability to compare our
individual performance against our peers and competitors. The report provides in depth results and analysis of
advertising response rates from hundreds of companies and several data aggregators for six direct marketing mediums
including email, direct mail, paid search, Internet display, telemarketing and other media. Here are some of the key
findings from the 2012 report.
Results from General Prospect ListsMarketing Medium Cost per Lead Response Rate
Direct Mail $51.40 1.28%
Paid Search $52.28 0.22%
Email $55.24 0.03%
Telemarketing $190.49 8.21%
Results from In House Lists
Marketing Medium Cost per Lead Response Rate
Direct Mail $19.35* 3.40%
Email N/A 0.12%
Telemarketing $77.91 12.95%
How does your cost per lead and response rate compare? Does your marketing and advertising budget have the
appropriate amounts and marketing mix to generate enough leads to achieve your customer acquisition and sales goals?
Are you collecting the right data to compute your response rate and cost per lead? Are you considering new marketing
channels that will lower you cost per lead? When we compare our individual performances to broad based metrics like
these we can see our companys real potential and better determine the strategies to achieve it.
When we compare our individual performances to broad based metrics like these we can see our companys real
potential and better determine the strategies to achieve it. If you dont have the metrics to determine those strategies
its a smart move to outsource a portion of your marketing to a contingent fee marketing company like New Neighborsew Neighbors First
www.facebook.com/newneighborsfirst www.newneighborsfirst.com
630.618Palat
7/29/2019 Advertising Benchmarks for 2012
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First. Contingent fee marketing companies remove the risk and can lower your cost of advertising and marketing
spending.