This document provides guidance on setting up advertising budgets. It recommends allocating 2-5% of gross revenues or 7-8% of revenues under $5 million to marketing. The allocation depends on industry, business size, and growth stage. It also discusses preparing a marketing communication budget with Excel, considering factors like target audiences and media strategies. Media plans should outline objectives, strategies, metrics and select cost-efficient media to deliver messages to audiences. Media buyers help with information, negotiation, monitoring and evaluation.

1. Setting Up Advertising Budget

2. Setting Up your Facebook Page
http://www.youtube.com/watch?v=4sXn6pAxe9
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The content shall be:
- Relevant and Dynamic
- Photos and videos
- Very short texts.

3. Percentage for advertising
• Many businesses allocate a percentage of actual or
projected gross revenues – usually between 2-3
percent for run-rate marketing and up to 3-5 percent
for start-up marketing.
For example, during the early brand building years retail
businesses spend much more than other businesses on
marketing – up to 20 percent of sales.
• As a general rule, small businesses with revenues less
than $5 million should allocate 7-8 percent of their
revenues to marketing

4. Factors of allocation of budget
But the allocation actually depends on several
factors:
the industry you’re in,
the size of your business,
 and its growth stage.

5. Methods
Percentage of Sales – Under this approach
advertising spending is set based on either a
percentage of previous sales or a percentage of
forecasted sales.
Example with Excel

6. What is Affordable
What is Affordable – For these companies,
advertising may only occur when extra funds are
available.

7. How to prepare Marketing
Communication Budget
http://smallbusiness.chron.com/prepare-
marketing-communication-budget-62386.html
https://www.youtube.com/watch?v=CJpwv-
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8. Recommended Process
http://www.inc.com/encyclopedia/advertisingb
udget.html

9. Media Plan
It is a written document that summarizes the objectives
and strategies that guide how media money will be spent.
The goal is to find de most effective and efficient way to
deliver messages to a target audience answering these
questions:
• Why?
• What for?
• Where?
• When?
• How big?
• How much?

10. Factors to consider
1) Target audience (2009 – 37% americans said
TV ads helped to make a purchase decision)
2) Communication and media objectives
3) Media strategies
4) Media metrics and analytics
- Cost Efficiency

11. Functions of Media Buyers
1) Provide Information to media planners
2) Select the media
3) Negotiation
4) Monitor/Supervise/Check
5) Evaluate the media choice after the
campaign
6) Billing and Payment

12. Budgeting in Excel
http://www.youtube.com/watch?v=v_HpJMSNG
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13. Bibliography
http://www.inc.com/encyclopedia/advertising-
budget.html