Freakonomics sighting

Freakonomics sighting: After
reading
the book Freakonomics, it’s hard not to be skeptical when
encountering ever-changing “conventional wisdom,” especially a radical
shift in conventional wisdom based on a “new survey.”

It happens everyday, however.

For example, there is the conventional wisdom that big media agencies
can use the leverage of “volume” to lower the costs for their clients.

Of course, today there’s “a new” conventional wisdom that disagrees:

“You
might have thought that this has something to do with volume,” he says,
“but it does not. And I think this is the best news possible for media
agencies. It says that it isn’t simply about scale, but that strategy
and negotiating skills do make a difference.”

Being “nimble,” using negotiating
skills, and being prepared to move TV advertising budgets around or
shift them into other media, he says, is what influences prices more
than the volume of ad budgets controlled by a media buyer.

(From: MediaPost.com – “Auditors Find Huge Price Gaps In U.S. Ad Market, ‘Size Doesn’t Matter’“)