Is there a Laffer curve for marketing spend?

By Ted Wright January 27, 2009

laffer curve

Last weekend some of us at Fizz were having dinner with some people who control about 10 figures of annual global market spend. They commented to us that their company was still involved with broadcast because at a certain and very large level of SOV, the marginal value of each additional marketing dollar spent increases. It’s kind of a Laffer curve for marketing spend argument. Guy Kawasaki is also out making a kind of mass beats Influentials argument these days. It’s a foolish/brave man who argues with Guy and wins.   

At Fizz we see the word of mouth marketing model winning every day this is why we like it so much and have built our business around the ideas and practices of WOMM. However, the wisest business people we know are always scanning the horizons for changes. We are glad to hear any thoughts that you might have.

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