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CPP is the cost of an advertising campaign, relative to the rating points delivered. In a manner similar to CPM, cost per point measures the cost per rating point for an advertising campaign by dividing the cost of the advertising by the rating points delivered. [4] The American Marketing Association defines cost-per-rating-point (CPR or CPRP) as:
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Direct mail is a common form of direct marketing, and may be employed by for-profit businesses, charities and other non-profits, political campaigns, and other organizations. Direct mail encompasses a wide variety of marketing materials, including brochures, catalogs, postcards, newsletters and sales letters. [17]
For example, if a company spends $100,000 on a direct mail piece and it delivers $500,000 in incremental revenue, then the ROMI factor is 5.0. If the incremental contribution margin for that $500,000 in revenue is 60%, then the margin ROMI (the incremental margin for $100,000 of marketing spent) is $300,000 (= $500,000 x 60%).
Direct mail fundraising is a form of direct marketing widely used by nonprofit organizations in North America, Europe, and parts of Asia-Pacific to acquire new donors or members and retain the level of their contributions or dues as part of a fundraising program.
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