Abstract: How much an individual firm spends on advertising is influenced by its resources and objectives more than by what other firms in the industry are doing. The amount of money spent on advertising differs widely among companies, even within the same industry.The main interest of the researchers was to find out if all the commercial banks adopt the same budgeting techniques when allocating money for advertising and the effect on sales of the respective bank, to find out if the increase in budget corresponded to increased sales.Responses from the questionnaire indicated that each bank utilizes a different method to allocate advertising budgets. None of the usual budgeting approaches ware applied by the commercial banks. The approach to new products is similar to that of the objective and task method. The research showed that in all commercial banks, the sales levels do not necessarily affect advertising budgets nor do they dramatically affect sales.