Learning library
Unit 5 · Control, Measurement and Ethics · Module 34 of 40
Advertising Budget Methods
Learning objective
Apply percentage-of-sales, affordable, competitive-parity and objective-and-task methods.
Concept summary
Percentage-of-sales is simple but backward-looking; affordable ignores opportunity; competitive parity assumes rivals are right; objective-and-task builds the budget from the communication job and is the defensible default. Share-of-voice benchmarking sanity-checks the answer.
Application task
Budget one campaign twice — percentage-of-sales and objective-and-task — and compare outcomes.