Tuesday, 29 September 2020

What is Advertising Budget? (A&BM 25Sept2020)

What is Advertising Budget?


The budget is an expression of the expenditure plan. It is estimated to meet the financial requirements of advertising plans so that advertising objectives with planned strategies may be realized within a given time frame.

 

It is a statement of proposed advertising expenditure; a guideline for allocating the available funds to the various functions and activities of advertising.

The nature of the advertising budget, advertising appropria­tion, allocating advertising budget and retail advertising budget are the main decision areas of the advertising budget.

 

A budget is an expression in monetary terms of the forward plan and the proposed activity. Advertising plan includes sales targets, product facts, marketing information, competitive situation, creative platform, copy treatment etc. The advertising budget is the translation of an advertising plan into monetary form. It states the amount of proposed advertising expenses and informs the management of the organization the expected cost of executing the advertising plan.

 

Advertising Budget is the amount of money which can be or has to be spent on advertising of the product to promote it, reach the target consumers and make the sales chart go on the upper side and give reasonable profits to the company.

 

Before finalizing the advertising budget of an organization or a company, one has to take a look on the favorable and unfavorable market conditions which will have an impact on the advertising budget.

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