What is the Marketing Plan Budget Report?
The forecast marketing expenditure budget shows you how much money you have available to spend this year as shown in the figure below.
Note: This report can be found in the Marketing Plan menu.
There are three key parts of this report that you must understand.
Your budget limit is set as part of your product’s marketing plan. It is up to you to decide whether you spend your entire budget or not.
How much you spend of this year’s budget has no effect on your budget for next year.
The first column shows much money you currently have allocated to evaluation research, Agency fees and product advertising. Changing any of your decisions in these areas will automatically update this report.
Available to Spend
This is how much unallocated budget you have left, i.e. how much money you still have available to spend if you want to. Any money you spend will be deducted from your net marketing contribution, so you should only spend on activities where you think the return will more than cover the cost.
If this number is negative that means that you have exceeded your budget and you need to choose which advertising activities to cut back. If you do not do so yourself, then AdSim will automatically reduce your media advertising expenditure during the rollover to bring you back within budget.