The Saturation Curves session in the MMM Advanced Workshop focuses on helping marketers understand diminishing returns in advertising. Saturation curves show how media effectiveness changes as spend increases, allowing for smarter budgeting and channel planning.
Key topics include:
Understanding Saturation Curves
They represent the relationship between media spend and performance (e.g., sales).
Initially, spend increases lead to strong returns, but beyond a point, returns begin to flatten—indicating diminishing efficiency.
Business Value of Saturation Curves
Identify the optimal spend level for each channel to avoid over- or under-investing.
Improve budget efficiency by reallocating funds away from saturated channels.
Full-Drawn vs. Curtailed Curves
Full-drawn curves show the full theoretical response but may overstate potential if spend exceeds historical levels.
Curtailed curves focus on realistic ranges based on actual spend, making them better for planning.
How Curves Are Built and Used
Derived from modeled data and account for adstock and response saturation.
Include metrics like average, max, and recommended spend levels.
Used for planning and budget optimization across channels.
By the end of this session, participants will be able to interpret saturation curves effectively and apply them to maximize marketing ROI through smarter media investment decisions.
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