Meta Launches Budget Simulator That Reveals Diminishing Returns
1 years ago
Meta has launched a tool showing diminishing returns of digital advertising. The simulator shows that doubling the budget multiplies results by 1.7, tripling by 2.28, and quadrupling by 3.01. As advertising expenditure increases, CPL/CPA increases, reducing ROAS and ROI. The dilemma is choosing between good margin at the cost of volume or vice versa. Enhancing the creative aspect and increasing ad quantity is another option.
