How To Create An Advertising Plan And Budget

Tip # 5 on using

Planning and executing an advertising campaign can be fun, creative, and certainly rewarding.  But it’d never get to that point unless you’ve got a solid financial plan for your advertising – possibly even an annual plan.

If you’re new to advertising, feel like you could benefit from a refresher, or know that there’s always something more that you can learn, is a great place to start.

Deciding How to Advertise

First, let’s learn a little about advertising. -> Marketing 101 -> Overview -> Advertising -> How Advertising Works explains how advertising works, and lays out a few strategies for making the most of your ad dollars.  Since you’re here, we’ll assume that you’re interested in radio advertising, either above all else or in a media mix.  Radio Advertising -> Tips gives a few helpful pointers on advertising specific to Radio, both from planning your commercials to figuring out how much money to spend and when to spend it.

See a term on the site you don’t recognize? It’s probably in the Radio Advertising Glossary at

How to Budget for Advertising

Chances are paying for an ad campaign isn’t as easy as just reaching into your back pocket and pulling out a checkbook.  You’ll probably want to budget your yearly advertising expenditures ahead of time – that way you’re not stuck with no ad budget when you need to get the word out!  Additionally, this will allow you to create a more balanced plan of advertising throughout the year, achieving consistency in messaging and gaining you year-round customers as opposed to advertising-responsive customers.

How much should you spend?  Check out Marketing 101 -> Overview -> Advertising -> How to Budget for Advertising.  Here, you’ll find a link and some quoted advice from the US Small Business Administration.  It helps to have a good idea of your upcoming year’s gross sales – depending on your sales plans, you should allocate a certain percentage of that towards advertising.  Additionally, (linked from the Advertising FAQ page) provides a formula and suggestion based on a few of your businesses characteristics.

So, really, how much will advertising cost you?  Perhaps a better question to ask yourself: “How much is NOT advertising costing you?”

Armed with this advice, you’re set to start budgeting for 2014 – which with the help of radio advertising will hopefully be your best one yet.