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# Diminishing Returns
- URL: https://www.adlingo.org/glossary/diminishing-returns/
- Published: 2025-01-15T11:14:00.000Z
- Updated: 2025-01-15T11:14:00.000Z
- Description: The economic principle where continued investment in a marketing channel yields progressively smaller incremental returns beyond certain spending thresholds.
- Author: Travis Lusk
- Tags: Measurement, #glossary, #Import 2026-10-27 17:05

The point at which adding more budget to a channel produces less incremental return per dollar. Every channel has one. The question is where it sits for your category, your audience size, and your current penetration. Response curves from MMM are the most reliable way to find it. The uncomfortable truth is that most teams pass the inflection point before they look for it.