DMA Response Rate 2016

  • ID: 3981634
  • Report
  • Region: Global
  • 80 Pages
  • Data & Marketing Association
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Data to Benchmark All of Your Marketing Campaigns

The Response Rate Report is back and better than ever! Looking to benchmark your campaign’s performance to drive strong results? Then look no further. Find out how your campaigns stack up across different industries and channels.

The 2016 edition provides success metrics for email, online display, paid search, direct mail and social media. Compare metrics specific to your campaign across 10 industries, B-to-B versus B-to-C and campaigns objectives such as direct sale, retail traffic, and lead generation.

Key sections of the report answer questions such as:

  • Which channel has the highest ROI?
  • Have response rates gone up or down since 2015?
  • Are open rates higher on desktop or mobile?
  • How will media usage change in the next 12 months?
  • And much more!

Report Objectives:
The primary objective of the response rate research this report shares is to provide benchmark data for media performance for the data-driven marketing community. Where possible, the data from this research study is presented in individual segments so that marketers can make valid comparisons of how their organizations are performing in their campaigns.

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1. Introduction

2. Benchmarks From 2016 Response Rate Report: Central Questions

3. For Marketers

4. Executive Summary

5. Overall Findings

6. Direct Mail

7. Email

8. Online Display

9. Paid Search

10. Social Media

11. Research Methodology

Appendix A: Sample Questionnaire
Appendix B: Glossary

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Report Layout
Following this Executive Summary, Chapter 1 shares an overview of key survey findings. Chapters 2 through 6 provide details for each media type, followed by a chapter that discusses the survey methodology. The Appendices contain the survey sample and provide a glossary of terms.

Methodology, Media And Metrics
This report is based on data from an online survey (reproduced in the Appendix) that was deployed from April 2016 until June 2016. Respondents come from the DMA and Demand Metric communities, and received an incentive for completing the survey as described in the Methodology chapter of this report. The survey experienced a 49 percent completion rate. The media types covered in this report include: email, direct mail, paid search, internet display ads, and social media ads. Data about comparative mobile performance was collected as part of each media section.

Key Findings
Email ROI Is The Highest Surveyed.
As in past surveys, email stays in the top spot, both in terms of median ROI and usage. The ROI of email far outdistances all other media, and conventional wisdom attributes this to the perception that email is free or very inexpensive to use. The Cost per Acquisition (CPA) for email when house lists are in use was the lowest of all media types in the study. Email sent to prospect lists had the lowest reported response rate. The heaviest use of email is in B-to-B campaigns, and compared to desktop email, over 80 percent of respondents report that open rates are the same or higher on mobile devices, while over three-fourths report that mobile conversion rates are the same or lower. Over half of this study’s participants plan to increase their usage of email in the next 12 months.

Direct Mail Response Rates Significantly Higher Than For Digital Media.
Direct Mail was the second most used media type in the study, and the strength of it is in the response rate it can produce. However, direct mail is projected to experience the greatest decline in future usage, and it has the biggest response rate measurement challenge. Despite this challenge, study participants report that it performs better than the digital media in this study, as measured by response rate. This characteristic may offset the higher Cost per Acquisition (CPA) associated with its use. The ROI of direct mail also compares very favorably to paid search, online display and social media advertising. This channel sees its greatest use in B-to-C campaigns.

Online Display Delivers Strong Response.
Online display showed noticeable growth between years of this study. One reason may be related to the evolution of targeting capabilities for this media: almost half the study’s respondents are using remarketing or retargeting with their online display campaigns. Over half of those who are using remarketing report higher Click-Through Rates (CTRs) as a result. Of the digital media types, online display boasts the highest response in this year’s study, with a CPA slightly lower than paid search and social media advertising. Looking at the performance of online display advertising on mobile devices, 80 percent of respondents report that mobile click rates are the same or higher than desktop rates, and just over one-fourth report that mobile conversion rates are higher. Usage for this media type is up year-to-year and 91 percent of respondents plan to increase usage or keep it at current levels in the coming 12 months.

Paid Search Usage Forecasted To Increase.
Paid search sees equal use in B-to-C and B-to-B settings. Almost half of paid search users are running lead generation campaigns, and when brand keywords are used, paid search was tied with email sent to house lists for the highest CTR in the study at 10 percent. Over two-thirds of paid search users use both brand and generic keywords in their campaigns, and slightly under half are using a third party paid search management tool. Comparing mobile to desktop paid search, 83 percent of respondents report that click rates are the same or higher on mobile devices, and one-third report that mobile conversion rates for paid search are higher. Usage is up slightly year-to-year, and almost half of respondents who use paid search plan to increase its usage in the next 12 months.

Social Media Drives Brand Awareness.
Social media advertising is first among digital media types for driving brand awareness, with over half its usage tied to this purpose. It is second behind email for overall usage, with Retail as the top using industry in this study. This media type compares well to paid search and online display in terms of CPA and ROI, and its strength is a conversion rate of almost 8 percent. Social media performs well on mobile platforms with 91 percent of respondents reporting mobile click rates the same or higher than desktop rates, and over one-third reporting higher mobile conversion rates. Usage is up markedly from the 2015 study, and social media projects as the second fastest growing media type in this survey, with half of respondents planning to increase usage in the next 12 months.

Multichannel Orientation.
Most organizations rely on more than one type of media for their campaigns, with the average in this study using 2.7 types. In the 2015 response rate study, 35 percent of study respondents reported using just a single type, and in the current study, that rate has dropped to 27 percent. Single media type users are most likely to use email (64 percent) or direct mail (26 percent). Comparing study results year-to-year, organizations are increasingly likely to use multiple channels, and in this study, 52 percent of the respondents use three or more (versus 44 percent in 2015). The media types most likely to see simultaneous usage are: email, social media and direct mail

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