The cost of timely advertising will vary with the amount of funds the company can provide, which can prompt those financial-conscious senior managers to realize that all types of expenses of the company are closely related to changes in total revenue.

It can prompt business managers to consider business management issues based on the relationship between unit advertising costs, product selling prices and sales profits.

It is helpful to keep competition relatively stable, because as long as competing companies tacitly agree to let their advertising budgets fluctuate with a certain percentage of sales, advertising wars can be avoided.

Treating sales revenue as the "cause" rather than the "effect" pointed out in advertising has resulted in an inversion of cause and effect.

Using this method to determine advertising budgets is actually based on the amount of available funds, rather than on the discovery and utilization of "opportunities", and thus beneficial marketing opportunities will be lost.

Using this method to disadvantage the advertising budget will cause the advertising budget to increase or decrease with annual sales fluctuations, thus conflicting with the long-term advertising plan.

This method does not provide a choice between this fixed ratio or a certain ratio of costs. Instead, a ratio was determined arbitrarily.

Instead of determining different advertising budgets according to different products or different regions, all advertising budgets are allocated at the same rate, resulting in unreasonable egalitarianism.

Enterprises must be able to obtain reliable information about competitors' advertising budget determinations, so that they can adjust their advertising budgets higher or lower as competitors' advertising budgets increase or decrease.

Competitors' advertising budgets can represent the collective wisdom of the industry in which the company operates.

Maintaining competitive balance can avoid advertising wars between regions.

The company has no reason to believe that the advertising budget determination methods used by competitors are more scientific than the company's methods.

The advertising reputation, resources, opportunities and goals of each enterprise are not necessarily the same and may vary greatly. Therefore, the advertising budget of one enterprise may not be worthy of imitation by other enterprises.

Even if the company's advertising budget is evenly matched with its competitors, it may not be able to stabilize industry-wide advertising expenditures.

Clearly define your advertising goals.

Determine the work tasks that must be performed to achieve this goal.

Estimate the various expenses required to perform this kind of work tasks, and the sum of these expenses is the planned advertising budget.

Define their advertising goals in as much detail as possible, preferably numerically.

List the work tasks that must be completed to achieve this goal.

Estimate the total cost of completing these tasks. The sum of these costs is the respective funding application amount, and the funding application amount of all managers constitutes the total advertising budget necessary for the enterprise.