System and Method for Optimizing Media Portfolio Allocation

One embodiment of the present invention sets for a mechanism for determining an optimized investment strategy across a portfolio of media channels for a given product or service. For each media channel in the portfolio, the unadjusted elasticity indicating an estimated effectiveness of the media channel when used for marketing is adjusted based on risk information associated with the media channel. The risk adjusted elasticity corresponding to each media channel in the portfolio is then used to determine an investment allocation for the media channel.