Area-by-Area Allocation

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Area-by-Area Allocation

A way to budget for advertising whereby a company allows its departments to spend a certain amount in each media market based on its size and relevance to the overall marketing strategy. For example, a company may allocate $10 million for advertising in Dallas, $7.5 million for Oklahoma City, and $5 million for Tulsa because each city is smaller than the one before it. Area-by-area allocation is also called market-by-market allocation.