The Dynamic Definition of the Advertising Campaign Budget

Abstract

The article is aimed at exploring means for optimizing the budgeting of advertising activity, the optimal distribution of the advertising budget among several products, advertised by a company, and several advertising channels used during the distribution of an advertisement. The current status of the optimizationized budgeting models in the world and in Ukraine was analyzed. The topicality of scientific developments in this direction has been substantiated. The model is based on the non-linear logistics function of the response value of sales for the costs of placement of an advertising message, including market saturation effects and the accumulation of promotional effect. A complex advertising budgeting model has been proposed, which includes the dynamic definition of a budget constraint based on the expected sales return from a byed advertising campaign whose budget is being optimized. The proposed model allows to schedule advertising activities in conditions of uncertainty and rapid change of environment.

Keywords

• advertising campaign
• budgeting
• budgeting optimization
• budget distribution
• dynamic budgeting