InTrendz MediaSystem: nominal

Glossary // D / Biochemistry

What is Diminishing returns?

Definition

Diminishing returns describe how each additional unit of input, such as an ad dollar, yields less extra output than the one before.

Formula

Hill / Michaelis-Menten response

Why it matters

In paid media it appears as rising marginal cost per result as spend grows, and it is the reason budgets should be spread across channels.