A recent article from Strategy-Business really caught my eye. The article, entitled The Advertising Saturation Point, discusses the fact that advertisers waste their money without knowing what is working and what isn’t. As John Wanamaker once said ‘Half the money I spend on advertising is wasted. The trouble is, I do not know which half.’
Each product on the market must have a point at which its advertising spend saturates and money becomes wasted. This happens when additional advertising spend no longer produces enough sales to justify the cost. Therefore the best ad budgets place just enough ads to reach saturation point and then stop.