An advertising budget is the money a company is willing to set aside to accomplish its marketing objectives. Media planning is generally the task of a media agency and entails finding media platforms for a client's brand or product.

1. ADVERTISING BUDGETING
&
MEDIA PLANNING
Prepared By
Nijaz N

2. Advertising Budget
2
• 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 .

3. answering several important questions?
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• 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?

4. Two Approaches to decide budget
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Top –Down Approach
Bottom- Up Approach
Management
decides how much
to spend
Activity based or
Object Oriented
approach by
managers

5. Methods to determine --Affordable method
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• 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.

6. Methods to determine --Competitive Parity Method
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• 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.

7. MEDIA PLANNING
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8. Media Planning
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• 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

9. Factors Influencing Media Planning Decisions
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• 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.)

10. Media Selection?
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• 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.).

11. Media Scheduling
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• 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

12. Types of Media Plan
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• Geographic
 Local, spot, key market
 Regional
 National
 International
• Selective
• Combination

13. Media Research
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• 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.