Incremental spending refers to budget allocation that allows for increased or decreased spending on media for advertising in direct proportion to sales. The challenge with this method is the difficulty in linking budget size to advertising objectives, making it hard to evaluate advertising success or failure in relation to expenditure.
A procedure used to set advertising budgets, based on a predetermined percentage of past sales or a forecast of future sales.
Zero-Base Budgeting (ZBB) is a budgeting method where all expenses must be justified for each new period, starting from a 'zero base.' Unlike traditional budgeting, no expenses are automatically carried forward from the previous period.
