Question: An advertiser notices that increasing their budget for a specific ad product shows diminishing returns in the reach curve on Ads Planner. What should they do?
- Focus all their budget on this single ad product
- Reallocate some of that budget to other ad products to maximize overall campaign reach
- Continue increasing the budget since more spend always equals more reach
Explanation
Ads Planner reach curves help show when additional spend on one ad product may produce less incremental reach. Diminishing returns indicate that the current allocation is becoming less efficient for expanding audience exposure. Reallocating budget across other ad products can improve total reach by finding additional audience opportunities. This supports a more balanced media mix instead of concentrating spend where incremental reach is flattening.
Why the other options are incorrect
Single ad product is incorrect because concentrating all spend can worsen diminishing returns.
More spend is incorrect because additional budget does not always produce proportional reach gains.
Source for verification
https://advertising.amazon.com/library/guides/campaign-planning
https://advertising.amazon.com/API/docs/en-us/release-notes/index
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