The budget of a campaign should be based on which principle?

• A. A fixed allocation from a larger marketing budget, with justification needed for any overspending
• B. A purely guess-based amount
• C. Based on the previous year's budget with no justification
• D. Only the budget for creative development

Answer: (B)

Starting with a provisional figure that you believe can support meaningful activity is the practical move. The idea is to treat the budget as a hypothesis about what it will take to achieve the campaign goals, then test and adjust based on what the data shows. This test-and-learn approach lets you allocate enough to run real experiments, measure results, and scale what works while cutting what doesn’t.

The other options impose rigid rules or narrow scope that hinder optimization: sticking to a fixed portion of a larger budget with strict overspend controls, basing on last year’s budget with no justification, or budgeting only for creative development ignores media, testing, and analytics needed to improve performance.