February 22, 2017, posted by Kevin Smith

Ad Math: How to Calculate Response Rate

One of the best things about direct marketing – such as digital marketing email, or direct mail – is that it’s possible to gauge whether your marketing is working or not. A basic number used to calculate the effectiveness of direct marketing is response rate, which measures the percentage of people who found your message or offer attractive enough to act on it.

Obviously, if someone responds to your marketing they’re that much closer to buying – but it’s not a guarantee. In fact, the average response rate (something we’re often asked about by our clients) varies from channel to channel and industry to industry as the chart below illustrates:

Response Rate by Select Direct Media

You should use these averages to see how your response rate compares and made adjustments to the channel, message, and call-to-action accordingly.

We hope this video helped. If so, please give us a “Thumbs Up” on YouTube, and subscribe to our channel where we’ll release a new Ad Math video each Wednesday.

And, as always, if you have a marketing metric that you’d like us to break-down in an upcoming video let us know by adding it in the comments.

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