This effective, time-tested process can be used to determine your advertising budget. Select the appropriate ratio for your business from the 'Advertising To Sales Ratio for Selected Products, Retail Stores and Services' chart, and then multiply the ratio by your annual sales.


Formula for Advertising Budget:
Advertising/Sales Ratio x Annual Sales = Ad Budget

Once your annual budget has been determined, it is important to invest your advertising dollars when it will be most effective for your business. Advertise more during peak seasons, and less during the off-season. Determine the correct percentage from the “Percent of Year’s Sales Done Each Month By Type of Store” chart.

For example, a pool company will want to focus more of their advertising in the late winter, spring, and into the summer. The fall may not be a very busy time for them, and they may want to make a greater investment in their advertising when more consumers are thinking about a pool. Keep in mind that your advertising dollars should never vary too much from your total sales.

Seasonal events can be a terrific motive to increase sales. Consider these special times when planning your advertising budget.


Holidays and Special Days
January 1 – New Year’s Day
January 20 – Martin Luther King Jr.’s Birthday
February 14 – Valentine’s Day
February 17 – President’s Day
March 17 – St. Patrick’s Day
April 20 – Easter
April 23 – Secretary’s Day
May 11 – Mother’s Day
May 17 – Armed Forces Day
May 26 – Memorial Day
June 15 – Father’s Day
July 4 – Independence Day
September 1 – Labor Day
September 7 – Grandparents Day
October 13 – Columbus Day
October 31 – Halloween
November 11 – Veteran’s Day
November 27 – Thanksgiving Day
(Begins) December 20 – Hanukkah
December – 25 Christmas Day
December 26 – Kwanzaa begins

Military Paydays are the 1st and 15th of each month.


Our Special Sections


To calculate your monthly budget:
Annual budget x % of Years Sales = Monthly Budget
Done Each Month