Advertising Appropriation

DEFINITION of 'Advertising Appropriation'

The portion of the total marketing budget that is allocated to advertising over a specific time period. The advertising appropriation policy for a company may be based on any one of a number of approaches. For example, spending an amount on advertising that is a fixed percentage of sales or based on the ad spend level of the competition.

BREAKING DOWN 'Advertising Appropriation'

In practice, the amount of the advertising appropriation is not very easy to establish. This is because of the lack of a definite relationship, in most cases, between the amount of advertising and the company's sales and profitability. Advertising appropriation is also sometimes referred to as advertising budget.

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