❓ Why is it important to understand the level of saturation for each of your marketing activities?
Let's look at the attached response curve.
If you are in point A:
More investments at this point drive a good amount of incremental sales for your company. In other words, the marginal ROI at this point is high. You have room to scale this activity.
✅ Typically it's a good idea to invest more.
If you are in point B:
Your marketing activity is saturated, meaning that additional investments bring very little back in incremental sales. In other words, your marginal ROI is low.
❌ Typically it's a bad idea to invest more.