The document outlines the fundamentals of advertising budgeting and media planning, highlighting the importance of setting an effective budget to achieve marketing objectives. Various budgeting methods, such as the affordable method and objective and task method, are discussed, along with factors influencing media planning decisions, including target market profiles and cost efficiency. It emphasizes the significance of strategic media selection and scheduling to optimize the reach and impact of advertising campaigns.

1. ADVERTISING BUDGETING
&
MEDIA PLANNING
Prepared By
Nijaz N

2. Advertising Budget
2
• An advertising budget is the money a company is
willing to set aside to accomplish its marketing
objectives.
• A subset of the larger sales budget .

3. answering several important questions?
3
• Who is the target consumer?
• What media type will be most useful in reaching the
target consumer?
• What is required to get the target consumer to
purchase the product?
• How much profit is likely to be earned for each dollar
spent on advertising?

4. Two Approaches to decide budget
4
Top –Down Approach
Bottom- Up Approach
Management
decides how much
to spend
Activity based or
Object Oriented
approach by
managers

5. Methods to determine --Affordable method
5
• Budgets on what we can afford.
• Small business
Methods to determine –Percentage of Sales Method
• Most commonly used by small business.
• Takes a percentage of either past or anticipated sales
and allocates that percentage of the overall budget to
advertising.

6. Methods to determine --Competitive Parity Method
6
• If a business is aware of how much its competitors are spending to
advertise their products and services, the business may wish to budget
a similar amount on its own advertising by way of staying competitive.
Methods to determine –Objective and Task Method
• Correlate advertising expenditures with overall marketing objectives.
This correlation is important because it keeps spending focused on
primary business goals.

7. MEDIA PLANNING
7

8. Media Planning
8
• Media planning is generally the task of a media
agency and entails finding media platforms for a
client's brand or product.
• The job of media planning involves determining the
best combination of media to achieve the marketing
campaign objectives.
• Media Planning = Selection + Scheduling

9. Factors Influencing Media Planning Decisions
9
• Target Market Profile
• Looking at Brand/Product Dynamics
• The Creative Execution
• Budget Considerations and Media Deals
• The Competitive Situation
• Availability and Timing Considerations
• Cost Efficiency (Cost per thousand: cost of reaching 1,000
members of target audience with media vehicle(s) or plan.)

10. Media Selection?
10
• Media are evaluated based on selectivity.
• There are two types of selectivity:
 Class Selectivity : is the ability of a medium to reach the
target market without waste.
 Geographic Selectivity : is the ability of a medium to cover a
particular geographic area without spillover (without
creating any negative impact.).

11. Media Scheduling
11
• Reach + Frequency + Continuity +Impact
• Reach : % of target audience with opportunity for exposure to
media vehicle(s) or media plan in a given time frame.
• Frequency : average number of times target is likely to be exposed to
the ad in a given time frame
• Continuity : how long the campaign runs continuous vs. fighting vs.
pulsation
• Impact : the attention-getting ability of the media vehicle(s)
selected to run the ad

12. Types of Media Plan
12
• Geographic
 Local, spot, key market
 Regional
 National
 International
• Selective
• Combination

13. Media Research
13
• Research that is centred on issues of media selection and
efficiency
• Survey conducted to investigate what segment of consumers
read which periodicals and/or listen to or watch which radio
or television programs.