Operating Principle

2–4 min read

Advertising Returns Diminish Faster Than Marketers Expect

Advertising Returns Diminish Faster Than Marketers Expect

Advertising Returns Diminish Faster Than Marketers Expect

Each additional unit of ad spend generally returns less than the prior one.

Each additional unit of ad spend generally returns less than the prior one.

Each additional unit of ad spend generally returns less than the prior one.

Response curves are concave, so linear budget assumptions overspend saturated channels.

Response curves are concave, so linear budget assumptions overspend saturated channels.

Response curves are concave, so linear budget assumptions overspend saturated channels.

Response curves are concave, so linear budget assumptions overspend saturated channels.

Explore demand generation strategy →

Operating Question

What customer memory, comparison, or demand dynamic should change the marketing approach?

What customer memory, comparison, or demand dynamic should change the marketing approach?

What customer memory, comparison, or demand dynamic should change the marketing approach?

Why It Matters

Response curves are concave, so linear budget assumptions overspend saturated channels.

Supporting Evidence

Andrew Ehrenberg; John Philip Jones.

Research Notes

Apply with category context, audience attention, and the limits of available evidence in mind.

Practical Actions

Test saturation; diversify earlier; model concave returns.

Continue Reading

Main Journal

All entries

Return to the complete Operator Journal library.

Main Journal

All entries

Return to the complete Operator Journal library.

Next Observation

Next article

Keep moving through the field notes.

Open the next observation

Next Observation

Next article

Keep moving through the field notes.

Open the next observation