Loading...

BUS306: Advertising and Promotion

Unit 6: The Advertising Budget   In Chapter 3 of Flash!*, the authors noted that advertising revenue in the US alone accounts for 2.5 percent of the nation’s Gross National Product. This represents a line on the firm’s income statement that decision makers will scrutinize closely. Creating the budget for an advertising campaign is a collaborative effort between the advertising agency and the advertiser’s marketing department.

In this unit, we will look at two aspects of the advertising campaign budget: (1) How much will it cost the advertiser to create and place advertising? and (2) How much will it cost the advertising agency to create a well-researched advertising campaign proposal?  In addition to our text’s Fortune 100 advertiser perspective, the readings in the subunits offer a view of the advertising budget from the small business practitioner’s point of reference.*

Unit 6 Time Advisory
Completing this unit should take you approximately 9 hours.
 
☐    Reading: 3 hours
 
☐    Subunit 6.1: 2 hours
 
☐    Subunit 6.2: 4 hours

Unit6 Learning Outcomes
Upon successful completion of this unit, you will be able to: - describe the budgeting methods used in an advertising budget; - develop an advertising budget that will produce a Return on Investment; and - explain how an advertiser can use Return on Investment to optimize their advertising spending.

****   - Reading: Launch! Advertising and Promotion in Real Time: “Chapter 7: Decide What You Can Afford to Say: msnbc.com Sets the Budget” Link: Launch! Advertising and Promotion in Real Time: “Chapter 7: Decide What You Can Afford to Say: msnbc.com Sets the Budget” (PDF)
 
Instructions: Read Chapter 7 on pages 204-230. This reading covers the material you will need to know for subunits 6.1 and 6.2. While reading this chapter, think about what methods this year’s Super Bowl advertisers might have used.
 
This reading should take you approximately 2 hours and 30 minutes to complete.
 
Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work’s original creator or licensee.

  • Lecture: iTunes U: Cambridge University, Judge Business School: Dr. Eden Yin and Dr. Omar Merlo’s “Don’t Cut the Budget” Link: iTunes U: Cambridge University, Judge Business School: Dr. Eden Yin and Dr. Omar Merlo’s “Don’t Cut the Budget” (iTunes U)
     
    Instructions: Listen to this 30-minute audio lecture for a sound argument for maintaining or even increasing the firm’s marketing budget during times of recession.  This lecture covers subunits 6.1 and 6.2.
     
    Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

6.1 Budgeting Methods   - Reading: Tutor2U’s “Advertising – Setting the Advertising Budget” and Professional Advertising’s “Advertising Budgeting” Link: Tutor2U’s “Advertising – Setting the Advertising Budget” (HTML) and Professional Advertising’s “Advertising Budgeting” (HTML)
 
Instructions: First, read the Tutor2U webpage for an outline of four methods for setting an advertising budget. Then, the Professional Advertising webpage will give you an overview of the advertising plan budget from the viewpoint of a small business owner.

 Reading these articles should take you approximately 2 hours to
complete.  
    
 Terms of Use: Please respect the copyright and terms of use
displayed on the webpages above.

6.2 Managing a Budget   - Reading: American Association of Advertising Agencies: Joe Burton’s A Marketer’s Guide to Understanding the Economics of Digital Compared to Traditional Advertising and Media Services: Chapters 3-4; Ohio State University’s “Planning Your Advertising Budget”; and Research: Robert Bain’s “Getting the Measure of ROI on Ad Spend” Links: American Association of Advertising Agencies: Joe Burton’s A Marketer’s Guide to Understanding the Economics of Digital Compared to Traditional Advertising and Media Services, Chapter 3 and 4 (PDF); The Ohio State University’s “Planning Your Advertising Budget” (PDF); and Research: Robert Bain’s “Getting the Measure of ROI on Ad Spend” (HTML)
 
Instructions: Read pages 11-15 of Burton’s report for a detailed look at budgeting considerations regarding traditional media and digital media  To access the second reading, follow the above link, then scroll down to the middle of the page and find the article under the section on “Advertising.”  In this article on advertising budgeting, pay particular attention to the section titled “How to Allocate Your Budget,” which makes some important points on managing the budget. Last, Bain’s article explains why ROI is an important metric in budgeting an advertising campaign.

 Reading these articles should take you approximately 4 hours to
complete.  
    
 Terms of Use: Please respect the copyright and terms of use
displayed on the webpages above.
  • Web Media: YouTube: Google+ Your Business’ “Advertiser Education: What is Return on Investment?” Link: YouTube: Google+ Your Business’ “Advertiser Education: What is Return on Investment?” (YouTube)
     
    Instructions: Watch this video on using ROI to manage pay-per-click ad spending.
     
    Watching this video and taking notes should take you approximately 5 minutes.
     
    Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

Unit 6 Assessment   - Assessment: The Saylor Foundation's “Unit 6 Assessment” Link: The Saylor Foundation's “Unit 6 Assessment” (HTML)

 Instructions: Please complete the linked assessment. You must be
logged into your Saylor Foundation School account in order to access
this quiz. If you do not yet have an account, you will be able to
create one, free of charge, after clicking the link.