The advertising budget is the total amount of money and other resources that a company determines and allocates to achieve its advertising goals for a specific product, brand, or for a specific period of time. It is the financial expression of the advertising strategy and directly determines the scope, frequency, and quality of the advertising campaign that can be implemented.
Conceptual budgeting is a critical process that can be based on different methods: percentage of sales, competitive parity level, affordable method, or the Task Method, which is the most logical. Effective management of the advertising budget requires not only its adequate distribution among the various media channels, but also constant tracking and measurement of the return on investment (ROI) of advertising spending.
