Formula in determining the advertising budget was never standardized methodology for the determination of advertising budgets that already exist at this time continues to change and improvement. The variation method of determining the advertising budget is also being developed. Until now there are at least 10 ways advertising budget determination. From some of these variations, advertisers generally accustomed to using the method or approach to sales, in which the Determination advertising budgets tailored to target sales.
Advertising budget is not for the media, but overall, including the manufacture of materials to research the ad. Determination through a sequential process.
In principle, the budget amount was never fixed in each period, for a predefined ad budget was never promised 100% the result is always the same as hope.
For example, if a brand or product category you are on everyday goods, then the same budget that could produce effects different ad.Another example, the cost of advertising to build brand awareness or repeat purchase may be different for each period, for external or market conditions could provide a strong influence. Advertising budgets in such cases often go up or down depending on market conditions or competition is happening.
Some of the things below will lead you to understand the determination of the ad budget.
Use personal assessment as possible
The managers or brand managers must utilize appropriate personal assessment to determine the cost of advertising.The assessment is of course based on empirical experience or something that is based upon his own experiences throughout the period of advertising. Although the formula for determining the budget they have, but still only a personal consideration is needed before a final decision.
Discussion of Inter-Ministry Becoming Necessity
Another important point that often the problem is the "contradiction" between production and marketing teams often have different perspectives. Finance team often had to win a party for the sake of productivity which is considered more appropriate budget.
For example, the funds needed advertising or promotional team are often transferred to increase the quality and control products, so the advertising budget to be very little, often zero. The transfer budget to the production is often considered an investment, while advertising is often regarded as waste.
That is why prudence in deciding the use of budgets, whether directed to the advertising or production, need attention. Do not let the ads be sacrificed just because it is often considered not measurable and not getting results quickly or immediately. Meanwhile, if the funds are used to develop the product, then the result can be seen visibly.
Understand Effects Retrieved Want Ads
Does advertising affect the determination of the effects of advertising budget? This question often arises in the minds of advertisers, or in another language., Often questionable, "If I advertise for x dollars, if the money I'll be back in the same amount? Or if I do not advertise at all, if my sales will go down? ".
A number of fact the results show, a brand that are very familiar does not advertise at all in one year will affect the brand value and may cause heavy losses in the short term. And to re-advertise the second year will be assessed very heavy.
It should be understood, advertising not only affect the customers or users, but also all the parties involved in marketing and sales systems, such as retailers, wholesalers, and even sales team or your own department.
In the minds of consumers, for example, advertising is accepted as a source of new knowledge about the brand and potentially increase the added value a brand. This increase is often more productive to push the performance compared to other marketing elements.
For example, because the performance of an ad, regardless of the price of a brand is often not very problematic because it pulled the message or the execution of an ad they see. The allure of the making appeared very strong emotional impression on the minds of consumers.
Advertising Budget Determination is a process
Determination of the ad budget is a process that requires knowledge of all things, not just to the effects of advertising but also to the situation of market competition, the latest brand to be advertised, as well as consumer perception of the brand.Be aware, advertising or advertising often works as a trigger end of sales. In this case other marketing factors such as price, product, and distribution work harder. It is not immediately lessen your range of advertisers not to advertise, because in this condition even if the ad becomes essential to work at the final stage.
Such cases often happen in the goods old age, or industrial goods. If your brand into the category of unique and almost no significant competitors, then the knowledge of the element of competition or rivalry brand becomes minor.
Media Is Becoming Important Elements Budget Budget Advertising?
Media budget is just one of many components of the ad, but the portions are the largest. The media is very important because the effects of advertising will only be felt when the selected media is very fitting and allows the message read or seen the audience.Often, a scourge of the media budget to advertise, simply because the expected effect is often not monitored immediately after significant.
Does Affect Ad Content Ad Budget?
It should be understood, the determination of the materials or content of the ad must be based on an appropriate knowledge about the effective performance of the ad. Various brands are often more fit when advertised in the execution of audiovisual, while others are more trusting brand of print media.The element of dramatization message is often a factor determining whether an advertising message will use the execution-based audio, copy-based, or visual based, and or a combination.
Is Reach and Frequency Determining stresses Ad Budget?
The amount of funds available to its impact to the advertising effect. When money is limited then the subsequent impact of the number of audience reach and frequency of ads can be very limited. There are still many things to consider, including a practical method of determining the advertising budget.
