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Top down or bottom up budgeting – which one is best?

How do you calculate your marketing budget? Advertising budget? Promotional budget? Is it top down where you start with a number and work out how to spend it? Or bottom up like ZBB where you start at the bottom and build it up based on projected returns. Find out which one is right for you in a Golden Minute here.

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How do you set your marketing budget?
Do you start with a budget perhaps based on last year’s budget?
Then adjust it up or down? Then work out what you can afford to do?
That is top down budgeting.
Or do you start with zero budget then decide what you need to deliver your strategy?
And work out the cost to build up your budget?
This is bottom up budgeting.
Also known as Zero Based Budgeting or ZBB
The budget is linked to the return on that investment.
Which one is best? Both have their uses.
But one is a cost-based approach. The other is an investment approach.
So, the question is what do you want to be? It’s your choice.