Setting the Communications Budget

Paul Dyson
D2D Limited


Setting communications budgets is a topical issue, and so it should be. Since advertising collectively for many brands is the largest chunk of the marketing budget, it is vital to get it right. A 5% or 10% improvement in efficiency can mean a significant saving.

This article discusses how we can answer the communications budget question and linked questions such as 'How do I divide it across my portfolio of brands?' The key is not a new statistical technique or model, but a modern, contemporary approach to statistical analysis, tailored to the specific problem, incorporating quantitative and qualitative inputs.

This approach requires the analysis to build itself around the inputs available as opposed to the traditional approach of shoehorning inputs into a statistical analysis package. The approach needs to pull together knowledge and learning from not only the data but also the marketing team and its suppliers to produce a realistic and usable model.