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Allocation Efficiency
The effectiveness with which resources are distributed across various marketing activities to maximize ROI.
Implications
Used in resource management to ensure that resources (capital, labor, etc.) are used in the most effective way possible, maximizing output.
Example
Example: Google optimizes allocation efficiency by using algorithms to allocate ad spend across different channels based on performance data.
Related Terms
Different from productive efficiency, which focuses on maximizing output from a given set of inputs, allocation efficiency emphasizes the best use of resources.
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