ADVERTISING BUDGETING

&
MEDIA PLANNING

Prepared By

Nijaz N
 Advertising Budget

• An advertising budget is the money a company is

willing to set aside to accomplish its marketing
objectives.

• A subset of the larger sales budget .

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 answering several important questions?

• Who is the target consumer?

• What media type will be most useful in reaching the

target consumer?

• What is required to get the target consumer to

purchase the product?

• How much profit is likely to be earned for each dollar

spent on advertising?

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 Two Approaches to decide budget

Top –Down Approach

Activity based or
Management Object Oriented
decides how much approach by
to spend managers

Bottom- Up Approach

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 Methods to determine --Affordable method

• Budgets on what we can afford.

• Small business

Methods to determine –Percentage of Sales Method

• Most commonly used by small business.

• Takes a percentage of either past or anticipated sales

and allocates that percentage of the overall budget to
advertising.
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 Methods to determine --Competitive Parity Method

• If a business is aware of how much its competitors are spending to

advertise their products and services, the business may wish to budget
a similar amount on its own advertising by way of staying competitive.

Methods to determine –Objective and Task Method

• Correlate advertising expenditures with overall marketing objectives.

This correlation is important because it keeps spending focused on
primary business goals.

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MEDIA PLANNING

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 Media Planning

• Media planning is generally the task of a media

agency and entails finding media platforms for a
client's brand or product.

• The job of media planning involves determining the

best combination of media to achieve the marketing
campaign objectives.

• Media Planning = Selection + Scheduling

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 Factors Influencing Media Planning Decisions

• Target Market Profile

• Looking at Brand/Product Dynamics
• The Creative Execution
• Budget Considerations and Media Deals
• The Competitive Situation
• Availability and Timing Considerations
• Cost Efficiency (Cost per thousand: cost of reaching 1,000
members of target audience with media vehicle(s) or plan.)

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 Media Selection?

• Media are evaluated based on selectivity.

• There are two types of selectivity:

 Class Selectivity : is the ability of a medium to reach the
target market without waste.

 Geographic Selectivity : is the ability of a medium to cover a

particular geographic area without spillover (without
creating any negative impact.).

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 Media Scheduling
• Reach + Frequency + Continuity +Impact
• Reach : % of target audience with opportunity for exposure to
media vehicle(s) or media plan in a given time frame.

• Frequency : average number of times target is likely to be exposed to

the ad in a given time frame

• Continuity : how long the campaign runs continuous vs. fighting vs.
pulsation

• Impact : the attention-getting ability of the media vehicle(s)

selected to run the ad

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 Types of Media Plan

• Geographic
 Local, spot, key market

 Regional

 National

 International

• Selective

• Combination

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 Media Research

• Research that is centred on issues of media selection and

efficiency

• Survey conducted to investigate what segment of consumers

read which periodicals and/or listen to or watch which radio
or television programs.

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