The document discusses advertising budgets, which estimate the financial requirements to achieve advertising objectives within a given time period. The budget is a guideline for allocating funds to advertising functions and activities. Key factors that influence the budget include available finances, sales percentages, competitors' spending, and return on investment. The budget specifies income, expenses, and how funds will be allocated. It must be constructed within the company's financial capabilities. The budget process involves estimating total advertising costs based on market information, then appropriating funds and specifying expenditures for each advertising function. The budget is presented to management for review and modification before execution and control to ensure actual spending matches estimates. Various methods can be used to allocate the budget, such as percentages of sales or objectives

1. ADVERTISING
BUDGET
Vijyata
Assistant Professor
Ranchi Women’s College

2. Advertising budget is an estimate of financial
requirements of advertising plans so that
advertising objectives can be realized with
planned strategies within a given period of time.
The advertising budget is a statement of proposed
advertising expenditure. It is a guideline for allocating
funds to various functions and activities of advertising.

3. Key fundamentals of ad budget
Ad budget depends on different variables such as finance
availability percentage of sales, competitors' budget, return on
investment and objective and-task approach.
The budget must specify the figures of income and expenditure,
financial capability and allocation of funds into various activities.
It must specially contain the details on the allocation of funds to
specific operations.
Budget must be constructed within the financial capabilities of the
company, otherwise the plans will remain unexecuted due to
shortage of funds.

4. Advertising
budget
process

5. Preparation of budget
The total expenditure of advertising is estimated on the basis of
information of markets, product, pricing, image, message and media.
(i) Budget Appropriation: Budget appropriation determines the total funds to
be allocated for advertising budget. Advertising appropriation depends on the
existing sales, unit sales, expenditure on advertising and affordable capacity.
(ii)Specification of Expenditure: After determining the appropriation, the
expenditure to be incurred on each function of advertising is specified. The
total budget is divided into small budgets for each advertising function.
Advertising budget is allocated among different market segments, time
periods and geographical areas depending upon the market potential within
that segment, period or area.

6. Presentation
After the budget is prepared by the advertising manager, it is
presented to the marketing manager. He decides the rationale and
contribution of the budget components and modifies it on the basis of
the prevailing marketing conditions and management requirements.
The marketing manager may fix the budget and budget components in
consultation with the financial manager. The budget may also be
modified in the light of sales forecast, sales opportunities and the role
of advertising in capturing the market share

7. BUDGET EXECUTION
Execution of the budget considers the cost of advertising ,
production , purchase of advertising time and space and other
functions.
Since advertising is employed to increase sales , the budget
must be compatible with the sales goals.

8. Control of Budget
This is used to check whether actual expenditure coincides with
the budget estimates or not.
In case of critical changes in the market , which require
adjustment in the budget, necessary modification should be
exercised

9. METHODS OF
ALLOACATION
OF
ADVERTISING
BUDGET
Percentage
of sales
method
The
objective –
and –task
method
Affordable
Method
Comparative
matching
parity
method
Marginal
Approach
Judgement
Method
Return on
Investment
Method

10. FACTORS AFFECTING THE BUDGET SIZE
Size of the
market
Extent of the
market
Financial
Resources
Stages in
product life
cycle
Amount to be
spent on
promotion
Role of
advertising in
the marketing
mix
Profit margin
on sales

11. THANK YOU !!!
For any sujhaw, sawaal and comment ,
use the comment box or write to me at
vijyata.rwc@gmail.com