Budget Allocation Revisited
David Merrick Business Economics LimitedKarl Weaver Data2Decisions Limited
In recent years numerous articles have been written about new methods and techniques for budget allocation. A fair proportion of these have been published in Admap, and have highlighted some sharp divisions in approach. Dyson ([1],[2]), for example, describes a mathematical process for allocating budget across a portfolio of brands based on advertising response curves, and outlines the financial benefits as well as the pitfalls.
By contrast, Harper and Bridges ([3]) argue that the response-curve-based approach to budget...