If we recall the old expression “advertising is the engine of commerce”, then you cannot 100% apply it to today's realities. The sphere of sales, services, and even the sphere of a non-profit plan cannot do without promoting its activities in the public. The advantages of the advertising business include the following:
- constant flow of customers;
- the high budget of the organizations planned to be included in the advertising campaign.
Despite the advantages, there are a number of shortcomings that are manifested in the high competition prevailing in the advertising services market, the large staff of employees responsible for their link in the company’s activities, the effectiveness of the agency depends on the professionalism of the employees.
The advertising business has risks associated with the departure of key employees, the loss of key customers. One way or another, the relevance of the advertising agency is at a high level. This is due to the growth of entrepreneurship in the country, with the emergence of new social movements and the development of new technologies.
Advertising Agency Business Plan
Any advertising company pursues the main goal - making a profit by providing its customers with qualified services related to the development, organization and conduct of various types of advertising campaigns and promotions.
The main condition that can bring success in the early stages of a business is experience in this area. An experienced person understands the complexities of activities, knows the main features business and can correctly assess this or that situation. In the absence of experience, it is necessary from the very beginning to understand the field of advertising services, their types and main tasks. The main purpose of advertising is to promote goods, services, creating the image of a company, goods, services, brands and people. Advertising is divided into types, namely:
- advertising in various media;
- Internet advertising;
- street advertising, including advertising on transport;
- holding exhibitions and presentations;
- advertising by personal contact;
- advertising by mail;
- conducting promotions;
- advertising by phone.
Creating an advertising business, you should study the market of your region, decide on types of advertising which you plan to implement, create your own intellectual product. To settle in the market of advertising services, you need a large staff. The minimum staff should not be less than 7-8 employees. It is important that the future agency fruitfully cooperate with local newspaper editorial offices, printing houses and television. When implementing your advertising program, do not forget about promising areas of information delivery, such as branding, creating corporate identity, video advertising, online advertising and telephony.
How to open an advertising agency
The creation of any business, including an advertising agency, requires planning. That is why it is necessary to carefully recreate the sequence of future actions for the implementation of the project:
- registration of a company, collection of documents, acquisition of seals - from 5,000 rubles;
- rental of premises - from 20 000 rubles / month.
- repair, decoration, design creation - from 150 000 rubles;
- purchase of equipment and furniture - from 150,000 rubles;
- personnel search - from 5,000 rubles;
- search and conclusion of contracts with advertising media;
- advertising - from 20,000 rubles;
- other expenses - from 10,000 rubles.
- The authorized capital of LLC is from 10,000 rubles.
In the advertising business, an important role is played by the office space. This is necessary if you plan to receive most of the clients in your own office. In this case, you will need competent decoration of the premises to create the proper image of your company.
If your advertising agency will independently visit customers, then it is worth approaching the choice of office more loyally, since its main purpose will be to receive calls and process documentation. It is worth noting that this option is less effective than the previous one.
The maximum effect is provided by the company’s policy when both methods of selling their services occur together. For these purposes, you will need to create a staff of field and staff of stationary employees.
How to open an advertising agency with 100% certainty that your company will become effective and popular? It is almost impossible, since based on statistics, only 20% of the agencies that have opened cross the annual threshold of activity.
Search for clients for an advertising agency
The largest share of customers consists of small businesses, therefore, professionals recommend that they focus on them. Large-scale companies do not pay attention to small and young advertising companies, therefore, before chasing such companies, it is worth earning a high reputation and collecting a high-quality portfolio.
Advertising business involves the use of many ways to achieve results. The most popular is direct advertising in the media. This type is carried out by placing advertising modules in local and regional print media.
Direct sale of advertising agency services is carried out by calling potential customers. This method is effective during the implementation of unique offers that may interest customers.
Typically, in the first year of work, media advertising and direct sales are used, which bring about 30% of the total number of customers. According to experts, the greatest profitability comes from creative ideas, for example, profit from services related to the production of layouts and banners, the development of logos and signs, which can reach up to 40%. When advertising in the media, the advertising agency makes a profit from the interest received from the discount given to the media. This type of service spends a lot of time and effort, but still brings its effectiveness.
Thus, having considered the business plan of an advertising agency, we can say about the feasibility of investing in this segment of the business. The average payback period is from 3 to 12 months.
