1. Historical Method :
- Common budgeting method.
- May be based on last year’s with a percentage increase.
- Nothing to do with advertising objectives.
2. Task-Objective Method: Bottom-Up –
- Most common method.
- Looks at objectives set for each activity, and determines the cost of accomplishing each objective.
3. Percentage-of-Sales Method :
- Compares total sales with the total advertising (or marketing communication) budget during a previous time period to compute a percentage.
4. Competitive Methods:
- Relates the amount invested in advertising to the product’s share of market.
- Must understand share-of-mind.
5. All You Can Afford Method:
- Allocates whatever is left over to advertising.
- Companies who use this don’t value advertising very much.