Explain The Advertising Budget Process


Advertising Budget 1

Advertising Budget process:-

Advertising budget process consists of four major steps:

  • Collection of data & preparation of budget.
  • Presentation and approval of the budget.
  • Budget execution.
  • Control of budget.
  • Collection of Data and preparation of budget :

Determining the size of the future advertising appropriation is the first step in preparing the advertising budget. The budget must be allocated among different market segment, time periods and geographical areas depending upon the market potential within that segment period or area.

  • Presentation and approval of the budget :-

The next step in the budget making process after it is developed by advertising head in consultation with the agency personnel is to present it before the C.E.O for the approval.

  • Budget execution:-

the third step is budget making process in the execution of the advertising plan .administration of advertising spending is the routine activity .the important task undertaken for this purpose is the purchase of authorized time and space over the media .the cost of advertising production such as making television commercials is also a significant element in the overall expenditure for advertising.

  • Control of Budget: –

It is duty of advertising manager to see whether actual advertising expenditures coincide with the budgeted expenditure or not.

A procedure must be evolved which brings information about current expenditure to the advertising manager.


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