An advertising budget, in simple terms, is the money a business plans to spend on promoting a product. In this article, we explain how to form it and teach you how to control your expenses so as not to waste money on ineffective platforms. We will analyze how to do this using examples of campaigns in Yandex Direct, VKontakte, and Telegram Ads.
Content
What expenses are included in the advertising budget?
Methods of forming an advertising budget
Calculating the cost of tasks
Advertising budget from turnover
Advertising planning and budget by competitors
Percentage of overhead and profit
Calculation of advertising costs per unit of product sold
Calculation of advertising costs from sales plans
How is the advertising campaign budget developed?
Cost control
How to Determine Minimum Advertising Budgets
Yandex Direct
VKontakte
Telegram Ads
Is it possible to save on advertising campaigns?
Conclusion
What expenses are included in the advertising budget?
The amount and structure of expenses are closely related to the advertising tools you use. And their choice, in turn, depends on how the sales funnel is built.
As a rule, it consists of several large stages. At the upper levels, methods buy lawyer contacts are used that work to expand the audience and increase brand or product recognition. Then, tools are used to bring users attracted at the previous level to the site, and at the last stage of the funnel, to convert them into customers. If the user does not make a purchase, they are tried to return using retargeting. Let's see what areas can determine the cost structure.
Media advertising is a tool used to increase awareness and reach. It is quite expensive for the budget, and the result of its use is difficult to calculate in specific figures.
Contextual advertising – placement in search and on partner sites of the advertising system. One of the main sales methods that attracts paid traffic to the site. Expenses depend on the subject of the business, the level of competition, and the approach to settings.
Example of contextual advertising on a Yandex partner site
Targeted advertising – similar to contextual advertising, but works only in social networks. It is also an important tool for organizing direct sales, but the rates and overall campaign budget are usually lower here.