Diminishing Returns & Marketing Spend Optimization Calculator (Simplified)
Estimate the point of diminishing returns for your ad spend in specific channels. Input historical data to project future returns.
Diminishing Returns & Marketing Spend Optimization Calculator
This calculator helps estimate the point of diminishing returns for marketing spend.
Input historical data points (Spend and corresponding Returns like conversions or revenue).
The model uses a power function (Return = a * Spendb) to project future returns.
The value ‘b’ indicates the nature of returns:
– 0 < b < 1: Diminishing returns (each additional dollar spent yields less return).
– b = 1: Constant returns.
– b > 1: Increasing returns.
1. Historical Data
2. Future Spend Levels for Projection
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