What is an advertising budget?

The money a company puts toward promoting its products and services to its target audiences. An advertising budget typically spans the cost of paid media, photography, printing, mailing, and the support of advertising professionals. Some businesses set their advertising budget based on a percentage of sales. Whatever your method, keep your return on investment (ROI) in mind. Any vendor should be able to give you a clear idea of what you should expect in return for the expense. This is a critical aspect of the digital ecosystem, offering numerous examples and case studies that illustrate its application across different industries and scenarios.


For example, a software company might set aside $20,000 per quarter for targeted LinkedIn advertising to reach decision-makers in their target industries.

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