An advertising budget is the amount of money a business allocates for its marketing and promotional activities over a specific period. This budget helps companies plan how much they can spend on various advertising channels, such as television, online ads, or print media. By setting a budget, businesses can ensure they invest wisely in reaching their target audience. Creating an effective advertising budget involves analyzing past spending, estimating future costs, and considering the overall marketing strategy. Companies often adjust their budgets based on the performance of previous campaigns, aiming to maximize their return on investment (ROI) and achieve their marketing goals.