Diminishing Returns Analysis
Where additional media spend produces less-than-proportional returns — Google Ads sample data
Current Spend (June 2026)
$34,000
Current ROAS
1.60×
Avg Marginal Return
$2.51
per $1 added
Optimal Spend (MR=1)
N/A
0% headroom
Efficient Spend Range — Current spend of $34,000 is below the estimated optimal spend of N/A. There is room to increase spend while maintaining positive marginal returns.
Spend vs Revenue
Each dot is a month; bubble size = ROAS. The curve flattening signals diminishing returns.
ROAS vs Spend
ROAS declines as spend increases — the core diminishing returns pattern.
Marginal Return by Spend Level
Incremental revenue per $1 of additional spend, sorted by spend. Below $1 = losing money.
Fitted ROAS Curve
Modelled ROAS from logarithmic regression. The optimal spend point is where marginal return = $1.
Monthly Diminishing Returns Analysis
Sorted by spend level. Marginal return = incremental revenue per additional $1 of spend.
| Month | Spend | Revenue | ROAS | Marginal Return | Status |
|---|---|---|---|---|---|
| July 2025 | $18,000 | $50,260 | 2.79x | — | Efficient |
| Nov 2025 | $18,500 | $59,360 | 3.21x | $18.20 | Efficient |
| Dec 2025 | $18,500 | $47,520 | 2.57x | — | Efficient |
| Oct 2025 | $19,000 | $55,860 | 2.94x | $16.68 | Efficient |
| Apr 2026 | $20,000 | $44,410 | 2.22x | $-11.45 | Efficient |
| May 2026 | $21,500 | $57,120 | 2.66x | $8.47 | Efficient |
| Mar 2026 | $22,500 | $62,100 | 2.76x | $4.98 | Efficient |
| Sept 2025 | $23,500 | $36,380 | 1.55x | $-25.72 | Diminishing |
| Feb 2026 | $33,000 | $43,800 | 1.33x | $0.78 | Diminishing |
| June 2026 | $34,000 | $54,340 | 1.60x | $10.54 | Diminishing |
| Aug 2025 | $35,000 | $48,280 | 1.38x | $-6.06 | Diminishing |
| Jan 2026 | $36,000 | $57,000 | 1.58x | $8.72 | Diminishing |