"Opportunity costs are invisible," notes Rory Sutherland. That phrase is going to get taped to the top of my computer screen. The audience we want to reach with our startup, Creative Houston, has to be reached before it arrives online. We are going to be forced to reach out and form partnerships with out-of-town schools and cities and companies. And we need to figure out a way to trade benefits instead of purchasing visibility with cash. I have been very inspired by Tim O'Reilly's essay on "sustainable scalability." I hope he's putting out a book about it.
Campaign: Advertising in in crisis, but it's not because it doesn't work, 2019-Jan-24 by Rory Sutherland
Online visitors to the site convert at about 0.3%. People who telephone convert at 33%. Maybe the website should have a phone number on every page."
Now obviously I am not claiming that the telephone is 100 times more effective than the web; prospects who call are warmer than those who browse. But it does raise a serious question – perhaps the most efficient way to sell travel is not the most effective way to sell travel? What, in short, is the opportunity cost of being efficient?
Nobody ever asks this question. Opportunity costs are invisible; short-term savings earn you a bonus. That’s the efficiency bubble at work again....
Why try to identify your target audience in advance when the right creative gets them to identify themselves? In mass media, the targeting takes place in the mind. And to suggest that the ad is wasteful because lots of people see it is dumb. Efficient advertising identifies potential customers; effective advertising can create them.