Advertising Budget


Definition: an Advertising Budget is the amount of money a firm reserves for and invests in advertising.
If a firm spends too little, the effect would be negligible and if it spends too much then some of the money could probably be put to better use.
5 factors to consider when setting the advertising budget:
- Stage in the Product Lifecycle
- Market Share / Consumer Base
- Competition and Clutter
- Advertising Frequency
- Product Substitutability



More on advertising budgets.
More on advertising: 5 M's of Advertising, AIDA Model, Negative Advertising, Sleeper Effect, Sustainable Advertising.


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