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Economies of Scale Don’t Always Make Sense

Strategy  / Economies of Scale Don’t Always Make Sense
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Economies of Scale Don’t Always Make Sense

“There is no higher religion than human service. To work for the common good is the greatest creed.”  – Woodrow Wilson

“Economies of scale” were established for businesses saving money as production increases. Many instances make perfect sense (printing, manufacturing, bulk orders, etc.). Simply put, it describes an impersonal relationship between cost and goods.

Why does the “Economies of Scale” mindset exist in Advertising and Marketing, where connecting consumers and users to brands is paramount? Make bulk broadcast buys and get lower spot costs! Sure, but what about varying consumption habits at the local market and hyper-geo level? Mandate cheaper bidding in digital display networks and get more impressions! Ok, but who are the humans strategizing targeting behind the scenes and optimizing your programmatic campaigns to specific objectives?

Companies will always need good service backing up production, and service isn’t mentioned in “Economies of Scale.” The value of experienced, personable, smart human marketing leaders is invaluable. Clients should want these dedicated humans focused on their business and providing built-to-suit service.

Even in the digital age, when programs, algorithms, bots, and sequences seem like they serve as the streamlined marketing assembly line that is so alluring, it’s brainpower, from humans, that drives strategic scale.

Advertisers and marketers have always been tasked with saving money and now focus on data and performance more than ever. Perhaps they will invest in agency partners whose “scale” is built for personable, attentive, relevant service that provides custom measurement to drive results. Maybe the ticket to “scale” is making money as production increases, not saving it. Choose your agency partners wisely.

About Matt Tiedgen

Matt brings extensive advertising industry experience to LEAD Marketing Agency with expertise in delivering a positive return on investment, through strategic account planning and management and media planning, buying, and measurement.

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