Ad tech glossary

Opportunity Cost Analysis

Technical definition

Evaluation of potential returns from alternative media investments to optimize resource allocation.

The ADLINGO translation

The question most media plans never formally answer: what did we not buy, and what did that cost us? Every dollar committed to one channel is a dollar not available for another. Opportunity cost analysis forces that trade-off into the open so the allocation is a deliberate choice, not a default. Most budgets are defaults that function as strategy.

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