The advertising response function is a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing results.

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The advertising response function is a well-known concept in marketing and represents the idea that there is a limit to how much a company can benefit from increasing its advertising and sales promotion budget. The response function typically shows that initial increases in spending lead to higher sales or market share, but at some point, the returns begin to diminish, and further investment in advertising has less and less impact on the company's performance. This effect is widely recognized and has important implications for marketing strategy and budget allocation.

The Advertising Response Function Is a Phenomenon in Which Spending