Channel Saturation
When adding more spend on a channel stops compounding — the point where you should switch channels, not double down.
What it is
Channel saturation = the moment CAC starts climbing faster than revenue scales. The channel still works. It just stops earning back the marginal $.
Why it happens
Auction-based channels (Meta, Google, LinkedIn paid) get more expensive as more competitors bid. Free channels (SEO, organic social) cap on attention not auction.
How to detect it
Plot CAC by month for the last 6 months. If trending up by 10%+ per month, you're saturating. Compare to category-level saturation signals (competitor ad pacing).
What to do
Don't pull spend. Add a parallel channel. Diversify. The saturated channel is still earning — just stop expecting it to grow.
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