Ad tech glossary

Marketing Response Curves

Technical definition

Mathematical models that describe the relationship between marketing investment levels and business outcomes, accounting for factors like diminishing returns and minimum effective spending levels.

The ADLINGO translation

The model output that tells you what each additional dollar in a channel is actually worth at your current spend level. Below the minimum effective threshold, spend does not register. Above the saturation point, incremental return collapses. The curve is not static. It shifts with creative, competitive intensity, and market conditions. Most brands do not run response curves at all. Most brands are either underspending or overspending in at least one channel as a result.

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