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 track their spending and measure the effectiveness of their advertising efforts. Creating an advertising budget involves analyzing past spending, estimating future costs, and determining the expected return on investment (ROI). Companies often adjust their budgets based on market conditions, competition, and the performance of previous campaigns to ensure they maximize their advertising impact.