Marginal return

Marginal return is the additional gain obtained from each additional euro of spend. It generally decreases as the budget increases (saturation): the average ROAS can stay good while the last euro spent is no longer profitable. It is used to decide whether to keep increasing or to reallocate the budget.

Example

Going from €10k to €12k brings €1.5k of margin: a marginal return of 0.75 per 1

Related concepts

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