Marketing budget optimisation: Advertising as risk hedging

Havas Media's Global Research team applied and adapted a long-standing financial methodology to help frame marketing strategies in financial terms and gain the confidence of clients' chief financial officers.

Marketing budget optimisation: Advertising as risk hedging

William CabreraHavas Media

Brand managers can use risk hedging tools to model outcomes at different marketing budget levels to maximise upsides while minimising risk.

Communicating to consumers comes as second nature for marketers. But all too often, communicating with their board of directors doesn't – especially when trying to secure their yearly budget.

Getting the investment needed to keep sales moving in these financially uncertain times is a hard pitch. Successful brand managers are expected to be the company's sharpest talkers, but all too often, we find that unless they are adept...

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