Engagement › Advertising · 3 of 4
Budgeting
By RISE Business Framework · Created by Gary Harper and Brandon McCurdy · Reviewed
An advertising budget sets how much you will spend, where, and what success looks like. In RISE, you plan the total cost of each ad, including design, production and media. You set limits per area and budget for testing. RISE describes six budgeting methods and favors the Percentage Method.
How RISE does it
- Set your budget, resource allocation and success benchmarks before any campaign.
- Plan each ad's total cost: design, production and media.
- Set spending limits per area and budget for testing formats and targeting.
- Aim for a budget that supports scalable growth while minimizing waste.
Budgeting is one of four tools in Advertising, part of the Engagement quadrant of the RISE Business Framework.
The RISE tool
Six budgeting methods
| Method | How it works | RISE's view |
|---|---|---|
| Percentage | Budget by percentage of sales, sales goals or gross markup | Most common; usually the best option because it ties to revenue |
| Goal-and-Task | Define goals, list the tasks, then estimate their cost | Common for long-term goals like market share |
| What's-in-my-Wallet | Plan month-to-month by what's available | May hold back revenue from lack of planning |
| Based-on-my-Competitor | Spend less, the same or more than a competitor | Leaves you at the mercy of their spending |
| Co-op Only | Limit spend to manufacturer co-op dollars | Limited by the manufacturer's message and funds |
| Zero | Keep marketing spend as close to zero as possible | Sometimes regretted |
AI RISE Coach
Work through Budgeting with the AI RISE Coach
“Walk me through Budgeting in the RISE Business Framework and help me apply it to my business.”
Quick self-check
“We have effective advertising channels that are measured weekly and adjusted when proven ineffective.”
Frequently asked questions
How do I set an advertising budget?
RISE recommends the Percentage Method for most businesses. Set the budget as a percentage of sales, sales goals or gross markup, based on past performance and industry standards.
What costs belong in an ad budget?
The full cost of each ad: design, production and media. RISE also says to set spending limits per area and budget for testing ad formats or targeting.
The other tools in Advertising
- ChannelsList every channel you advertise on, with its spend and share of your budget.
- MetricsTrack performance for each channel so you know which tactics work and where to improve.
- ConsistencyKeep the same message, visuals, colors and fonts across every channel so ads tell one story.
Related in another quadrant: Stoplight Reports
