A company's advertising budget is usually a component of its wider sales budget, which includes the marketing budget. Advertising is a part of the sales and marketing process. When it comes to assigning a budget for advertising and marketing, businesses take a number of tactics. The top-down strategy and the bottom-up approach are two techniques covered in this study. It's also worth noting that various budgeting methods might be used in a comprehensive marketing or operational strategy. These budgeting techniques aren't only for advertising budgeting; they can be used for almost every financial component of a business or agency. Money spent on advertising may be viewed as an investment in the company's growth. Bottom-up budgeting is sometimes mistakenly referred to as a more advanced version of top-down budgeting. This is not the case, and the two budgeting disciplines are not interchangeable. Departments must develop budgets within the limits imposed by senior leadership in a top-down budget. Departments construct their budget projections and submit them to upper management in a bottom-up budget. The two methods of budgeting are the most commonly used. While a top-down budget saves time, it compromises a deep understanding of each department's requirements. As a result, certain departments may be unable to work effectively within the limits imposed by upper management. A bottom-up budget, on the other hand, allows workers to take ownership of the process and makes use of their knowledge in the departments they manage, although the departments' output may not always correspond with the organization's overall aims.