Advertising Budget

How much will you spend on ads? Duh. What may not be duh is that the cost of shooting the commercial is usually like 1 percent or less of the total ad budget of the media buy itself.

That is, a commercial - an amazing one with celeb hair getting set on fire, fireworks, and entire cities blown up - might cost a million bucks. But the whole media buy might be a couple hundred million.

Think about how many times you've seen Aaron Rogers do the discount double-check thing, or Peyton Manning mumble about pizza and/or Nationwide being on your side. The modern era is driven by internet ads. Think: Google Search Engine Marketing. This new world is granularly measured. Every dollar in is tracked, as are sales jumps via campaigns.

Catchphrase: I know half of my advertising budget is wasted. I just don't know which half.

Related or Semi-related Video

Finance: What is a Budget?43 Views

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Finance a la shmoop what is a budget? that's that thing you throw right out [Woman throws budget out the window]

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the window just before you start doing all your Christmas shopping

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right but generally it's a plan that lets you see where your money will be

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spent if you have a personal budget well you'll be able to decide ahead of time [Personal budget example]

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how much money you'll spend on clothes, food, megaphones to annoy and anger your

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neighbors and you know whatever floats your boat if you own a company well

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you'll probably have much more complicated budget for things like

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advertising and lawyer fees either way the plan helps you make sure that you

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have enough moolah for everything you need and maybe some leftover for stuff

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you want.....Joan wants to control her money so she decides to set up a budget for [Joan setting up a budget on a laptop]

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next month she makes a thousand bucks from her summer job and well here's what

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her budget looks like.....

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Now Joan knows exactly where every penny is gonna go she's not [Joan driving a car]

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gonna be caught off guard by any surprise expenses she's not gonna spend

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$200 on safecracking equipment and then realize she doesn't have enough left [Joan stood beside a vault of gold bars]

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to pay her phone bill although if she does get hit with some unexpected

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expenses well hopefully yeah she can just pawn some of those exotic vases she

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took from the Peterson place [Joan holding a vase]

Find other enlightening terms in Shmoop Finance Genius Bar(f)