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5 CUPS

Advertising Budgeting: Where’s the Evidence?

Dr. Rachel Kennedy, Ph.D. – Associate Professor, Ehrenberg Bass Institute

Comparing budgets from competing methods for a variety of categories revealed that different approaches led to significantly different budgets. The key insights from this study are provided.

  • Not all budgeting approaches are equal. Different budget approaches give different answers.
  • “Be evidence-based in selecting approaches to use.”
  • Combine key approaches. The authors recommend combining heuristics with algorithmic approaches, and considering both internally- and externally-focused perspectives.

 

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