Taking the guesswork out of budgeting

This article explains how risk assessment techniques can be applied to market budgeting. Econometric analyses, however accurate, cannot predict what will happen, so its use must be based on informed guesswork.

Taking the guesswork out of budgeting

Karl Weaver and Paul Dyson

Most companies will have some sort of structured process for setting the marketing budget. As a business Data2Decisions has worked with many clients to design and implement such processes, often across a brand portfolio and across countries.

Recently, we have observed the approach evolving. Clients want to understand the potential range of financial risk when making decisions about how to spend the marketing budget. This arises naturally from an increasingly varied and complex marketing palette and is critical because understanding the sensitivities may change a decision about...

Not a subscriber?

Schedule your live demo with our team today

WARC helps you to plan, create and deliver more effective marketing

  • Prove your case and back-up your idea

  • Get expert guidance on strategic challenges

  • Tackle current and emerging marketing themes

We’re long-term subscribers to WARC and it’s a tool we use extensively. We use it to source case studies and best practice for the purposes of internal training, as well as for putting persuasive cases to clients. In compiling a recent case for long-term, sustained investment in brand, we were able to support key marketing principles with numerous case studies sourced from WARC. It helped bring what could have been a relatively dry deck to life with recognisable brand successes from across a broad number of categories. It’s incredibly efficient to have such a wealth of insight in one place.

Insights Team
Bray Leino

You’re in good company

We work with 80% of Forbes' most valuable brands* and 80% of the world's top top-of-the-class agencies.

* Top 10 brands