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.