The law of diminishing returns
In economics, the law of diminishing returns states that beyond some point, each additional unit of variable input yields less and less additional output.
So, what does this have to do with media analysis?
Simply put, media analysis, or any other business activity, is no different from a production line.
You need to add business value to any activity and there is a fine line between too much information and not enough.
Too much information creates information overload. This can be time-consuming and, therefore, not cost-effective.
Too little information doesn’t give you the value or context you need. This can leave your decision-making rudderless.
Media analysis is about answering why something is happening or has happened, so you can take action. That action can come in the form of learning from your mistakes and correcting the way you engage people or situations, or it can come in the form of being able to adjust your tactics in real-time to generate real measurable results.
It’s all about return on investment (ROI). That’s what will dictate what and how you monitor and measure your activities via the media.
In fact, at MediaMiser, this is how we decide what features we’ll add to our ‘News into Knowledge’ system. People and organizations need to derive value from the information that is collected and analyzed in a cost effective manner.
Furthermore, MediaMiser invests time and energy researching the why and exploring ways to take action on it. That’s a big reason why we created our Resource Center and our blog, Turning News into Knowledge.
Leave a Reply