Brief introduction of advertising budget

Advertising budget is the planning of the total amount of funds needed for the other party's advertising activities in a certain period, its use scope and distribution mode.

Advertising budget is an important part of advertising strategic planning and a systematic project. All advertising activities should be supported by advertising budget. Most enterprises make advertising strategies based on advertising budget, that is, how much advertising expenses are invested and how to decide on large-scale advertising activities.

Advertising budget and advertising expenses are two closely related concepts, but there are also great differences. Advertising expenses generally refer to all expenses used for advertising activities, mainly including advertising research expenses, advertising design expenses, advertising production expenses, etc. Advertising budget is the cost plan of enterprise's investment activities, which stipulates the total amount and scope of use needed to plan its advertising activities. Therefore, advertising fee can be said to be a general concept of funds needed in advertising activities and a kind of enterprise financial plan.

Advertising budget has important practical significance in advertising activities. If the advertising budget is too large, it will cause waste. If the advertising budget is less, it will inevitably affect the necessary advertising activities and even the whole sales link, and it will be at a disadvantage in the competition. Its specific significance is embodied in the following aspects: the main criterion for evaluating advertising leisure time is to see to what extent advertising activities have achieved the requirements of advertising objectives and achieved corresponding advertising results. The advertising budget has made specific provisions for each item of advertising expenses, which provides a basis for the comparison between advertising effect and advertising expenses.