What factors affect the size of the media budget?

Several factors should be collectively analyzed to determine the appropriate size of the media budget. The size of the customer base particularly in mass markets may put more resources in advertising as opposed to smaller ones such as industrial markets. Competition levels will also be a key influence. Organizations may get a feel for what competitors are spending on advertising and may consider surpassing these spends to change consumer attitudes and behavior in their favour. The stage of the product’s life cycle will affect media budgets. Products in their introduction and growth stage typically justify larger expenditures. Lastly, product characteristics, specifically unique brand-related ones, can justify higher budgets to educate consumers on the superior features of a product over the competition.