What is a key consideration when determining a media budget?

One of the key considerations when determining a media budget is past spending trends. Analyzing historical spending data allows advertisers to comprehend how much budget has been allocated in previous campaigns and what results were achieved. This can provide insights into which strategies were effective and which were not, helping to refine future budget allocations. By looking at past performance, a company can make informed decisions about how much to invest moving forward, leading to more efficient use of resources and potentially higher returns on investment. Additionally, it helps in setting realistic financial expectations and adjusting strategies based on seasonal fluctuations or identified patterns in audience engagement.

Considering agency commissions, market demand, and competitor budgets are also important factors, but they serve more as external influences rather than internal benchmarks that reflect a company's own historical context and performance.