The Budget is an estimate of costs, revenues and resources for a specific period depending on the assessment of future financial conditions and goals.
In companies, the budget is very important to coordinate resources and expenditures. The amount of money a company provides for certain actions or campaigns can be a very important factor for the execution of these actions. Since the budget is a limiting factor, it determines which actions can be accomplished within a campaign.
An example: if a company sets a certain budget for marketing campaigns, the amount of this will determine whether:
- the company is using a lot of classic mass media marketing (Above-the-Line) or
- is using more precise, targeting based ways of advertising (Below-the-Line), which is a lot cheaper.
As mobile advertising is still the most rapidly growing sector in digital advertising, the budget for mobile marketing campaigns is believed to further increase over the next years. The forecast for the 2017 global mobile advertising ad spend predicts a total of over 130 billion dollars. Consequently, this emphasizes the growing importance of mobile advertising in the world of digital marketing.