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Setting budgets

The marketing budget typically includes all promotional and communications costs as well as those of running the marketing function; the media budget refers to the investment by a brand in paid-for media. Setting budgets involves estimating the costs needed to meet the brand’s strategic, financial and customer behaviour goals. Best-practice budgeting is an analytical process that requires detailed information about the brand's competitive set and its status within it (for example, its share of voice).

Key Reading

Important papers from across the Warc database

This guide summarises the key arguments on Warc around budgeting, offering marketers practical advice from industry experts. It covers topics including the budgeting process, ways of using data modelling, budgeting in a multi-channel world and when budgets have to be cut.
Andrew Green on why this most important of questions for marketers lacks a simple solution.
This article explains how risk assessment techniques can be applied to market budgeting.
The relationship between SOV and SOM as the most important factor determining budgets.
Practical tips for cutting budgets – a process that should be careful and rational, not emotional.

Research Paper

The current study applied a “mixture-amount modeling” statistical approach—used most often in biology, agriculture, and food science—to measure the impact of advertising effort and allocation across different media.

Article

This report provides evidence of how advertising - with an estimated global spend of $542 billion in 2016 - plays a crucial role in driving national economies and generating growth.

Article

This article outlines how electric vehicle brands such as Nissan and Toyota are raising the game in automotive advertising, using new technologies and innovative approaches.

Article

This article summarises the results of the Global Marketing Index (GMI) for February 2017, when the headline GMI value rose to a six-month high (52.9) on a global level.

Article

This report reveals the trends and lessons from the 2016 IPA Effectiveness Awards, analysing what differentiated the winners from the rest of the entries.

Article

This webinar discusses the key points from Warc's Asian Strategy Report 2017, an analysis of entries to the 2016 Warc Prize for Asian Strategy.
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  1. Article

    This report reveals the trends and lessons from the 2016 IPA Effectiveness Awards, analysing what differentiated the winners from the rest of the entries.

  2. Article

    This article provides marketers with information and guidance about avoiding advertising wearout and decay.

  3. Article

    This article explains research by TiVo that showed how decreased TV ad spend hurts sales; for every $1 saved in TV spend, the drop in sales return was $3.

  4. Article

    This article provides marketers with information and guidance on setting marketing budgets.

  5. Article

    This article sets out the top 10 drivers of advertising profitability, based on in-market experience and data modelling.

  6. Article

    This full version of the 'Seriously Social" Warc Trends Report (also available in summary form) identifies and explores effectiveness trends across approximately 800 recent case studies on Warc that contained a social media element.
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