The Art of Spending: Optimizing Your Marketing Budget with Nonlinear Optimization
Optimize Your Marketing Budget with Nonlinear Programming
In the age of digital marketing, businesses face the challenge of allocating their marketing budget across multiple channels to maximize sales.
However, as they broaden their reach, these firms inevitably face the issue of diminishing returns – the phenomenon where additional investment in a marketing channel yields progressively smaller increases in conversions. This is where the concept of marketing budget allocation steps in, adding another layer of complexity to the whole process.
In this article, we're going to explore the potential of nonlinear programming, specifically conic optimization (or cone programming), as a tool for marketing budget allocation. With the use of this advanced mathematical technique, we aim to optimize the distribution of marketing budget across various platforms to extract the maximum value and the highest possible ROI.
The code is available on GitHub and Google Colab.
