Patent ID: 8744947

Claim:
A computer-implemented method for determining an optimized investment strategy across a portfolio of media channels for a given product or service, the method comprising: by operation of one or more computer processors: receiving data associated with each media channel in the portfolio of media channels, wherein the data associated with a particular media channel includes an unadjusted elasticity that indicates a percentage change in a metric corresponding to the given product or service generated by a percentage increase in the level of investment in the media channel as well as a risk factor specifying a confidence interval that indicates a confidence level in the accuracy of the unadjusted elasticity; for each media channel, computing a marginal revenue based on the unadjusted elasticity associated with the media channel, wherein the marginal revenue associated with a particular media channel indicates a change in the metric corresponding to the given product or service generated by a unit of additional investment in the media channel; for each media channel, adjusting the marginal revenue associated with the media channel based on the risk factor included in the data associated with the media channel; for each media channel, converting the adjusted marginal revenue associated with the media channel to an adjusted elasticity; and computing an optimized level of investment in each media channel included in the portfolio of media channels based on the adjusted elasticities associated with the media channels.