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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMarketing FinanceZero-Based Budgeting

Marketing Finance

Zero-Based Budgeting

Building each budget from zero every period, justifying every expense, rather than adjusting the previous year's figures.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Zero-based budgeting is a method of building each budget from zero every period, requiring every expense to be justified, rather than adjusting the previous year's figures. In marketing, it forces teams to defend each program by its expected return. It can cut waste and redirect funds, but it takes more time and analysis than incremental budgeting.