Zero Based Budgeting has been around for decades, but the recent resurgence in marketing has come with worry and fear amongst many marketers. This is because in most cases it is being applied to simply drive down marketing budgets and rewarding the consultants who deliver those reductions. Find out how ZBB can help here in a Golden Minute.
When you read about Zero Based Budgeting the methodology makes sense.
Start at zero and budget for those activities that deliver a return on investment in the short, medium or longer term.
So why is it that so many consultants who are implementing ZBB are talking about working to non-working ratios?
Or media investment levels?
Or agency fees?
Or in fact about almost anything except return on marketing investment and marketing performance?
You could cynically believe it is really just a way to reduce the marketing budget to pay for their fees?
While ZBB suggests reinvesting the savings back into marketing that performs.
There is nothing wrong with ZBB if you do it right. Right?