Marketing Channels · Channel economics · Component
The loaded cost
Everything the channel costs, not just the media line — because production and management frequently exceed the spend.
The deliverable
What it is
The media line is the visible part. Production, management time, tooling and agency fees are the rest, and for content-heavy channels they dominate.
Comparing channels on media cost alone systematically favours the ones with high production requirements, which is the opposite of what the comparison is for.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The media
What is paid for the placement itself.
3 attributes: Media spend · Period · Share of total
LearnThe production
What making the material costs.
3 attributes: Production cost · Production time · Reusable
LearnThe management
What running the channel takes in time.
3 attributes: Management time · Whose time · Estimated value
Learn
Production cost scales with the number of channels rather than with spend. That is an argument for fewer, done properly.
The other components in channel economics
The payback
How long until an acquired customer repays the cost — the number that connects a channel decision to cash.
LearnThe spillover
What this channel does to the performance of the others — because channels are not independent and are almost always measured as though they were.
Learn