How to start an advertising agency from scratch? Advertising business

In the world of modern business, there are many ways to promote goods and services. The most accessible of them are carrying out promotional activities, thematic events, merchandising, as well as the production of banners, leaflets, POSM. This is not all that a product can promote. However, all of the above applies to advertising. Few businesses can survive without ads.

Entrepreneurs for Entrepreneurs

Demand creates supply. The need to attract customers gave rise to the need for the advertising business.

During just one day, a person encounters advertisements at almost every step. Turning on the radio in the car or the TV in the kitchen in the morning, on the way to work, during a break for surfing social networks, just working in a manufacturing enterprise, going to the grocery store in the evening, going for a walk with the children ... Advertising finds a person everywhere he goes neither walked nor did anything. Today it is the most effective way to manage people and make a profit.

Types of advertising agencies

The sphere of advertising is quite extensive and includes a large number of both large transnational enterprises and representatives of small firms. As in any field, the advertising business can be divided according to territorial coverage:

  • International agencies working with major global brands operating in several countries. These agencies offer a full range of services.
  • National firms. This type works within the same country. It can act as a contractor for international enterprises, or the main contractor for domestic customers.
  • Regional agencies. Here services are provided within a separate region, and it is possible to involve the client in the business. Small and medium business entrepreneurs with a small budget find it profitable to work with the third category due to their relatively low prices for the services provided.

The second classification is based on the list of work performed by the agency:

  • Full cycle agencies can organize almost anything the advertiser wants. If only there was enough budget for his desires;
  • Narrow-profile agencies specializing in the production of advertising materials, recruiting, signage or other individual work.

How to start your own advertising agency from scratch

Own business is much more pleasant and profitable than just work in a company, even if it is a very high position in a large company. But only those who are willing to take risks can try their luck in free business navigation.

What does it take to start an advertising agency from scratch and how to do it? First of all, you need to have a clear idea of ​​what you will have to deal with on a daily basis. Advertising is constant communication with people. This is communication with customers, contractors, personnel, subordinates, representatives of the executive bodies of state power, the tax inspectorate. Therefore, you need to have good organizational skills, iron nerves, sociability and a great desire to do what you love.

Advertising agency financial model

Brief Investment Memorandum

Advertising is known to be the engine of commerce. Today there are many agencies involved in attracting clients. However, the demand for high-quality and effective advertising is growing steadily. Thus, the opening of an advertising agency is a promising direction. In this business plan, we will look at a bus ticket advertising company.

The goal of the project: making a profit in the provision of advertising services.

The main reasons for opening an advertising agency to advertise on tickets on buses:

  • Steadily increasing demand for advertising services.
  • Advertising on tickets 100% falls into the hands of the target audience.
  • Advertising on tickets is profitable and effective.
  • Wide distribution coverage.

The initial investment amount is 290,000 rubles.

The break-even point is for the first month.

Payback period - 4 months.

Average monthly profit - 110,338 rubles.

Description of business, product or service

  • 1 How to start opening an advertising agency
  • 2 How much can you earn from an advertising agency
  • 3 How much money is needed to start
  • 4 How to choose equipment for business
  • 5 Which OKVED to specify when registering a business
  • 6 What documents are needed to start a business
  • 7 Which tax system to specify upon registration
  • 8 Do I need permission to operate
  • 9 Technology for opening an advertising agency
  • 10 Newbies in the advertising business

Now in this market it is difficult to occupy your specific niche.

As they say, all the seats are occupied, so there is a certain risk of starting a business in this direction.

But it is also worth considering the fact that, in general, opening a business is a certain risk, even if you have calculated everything, so consider the business idea of ​​opening your own advertising business.

Certain factors cannot be calculated in business, so there is even such a joke that smart people cannot do business.

Of course, this is a joke, but everyone remembers that there is some truth in every joke.

The business of opening an advertising agency also has probably the most positive plus, it is that it does not require strong costs in the first couples.

Of course, if you want your business to instantly start generating income for you, then you should invest a certain amount in it.

But if you do not have this opportunity, then it is quite possible to get by with a modest budget.

How to start opening an advertising agency

As you know, advertising is the engine of trade, and today no business can do without it. The volume of the advertising market in the world exceeds $ 500 billion a year. This has led to an abundance of ad agencies all over the place. Despite the huge supply, the demand for high-quality advertising services is high and trends indicate that it will continue to grow, and therefore the opening of an advertising agency is a promising direction that can bring considerable profit.

At the same time, it is possible to start an advertising business practically from scratch - without much investment and investment. Ideally, you have start-up capital, but with a creative approach to business this is not necessary.

Service description

First of all, you need to decide what constitutes an advertising business. Typically, this is an organization performing the following functions:

  • distribution of outdoor advertising;
  • promotion of a client's product or service in the media;
  • PR campaigns, including political ones; <
  • organizes an advertising campaign in the network;
  • SMS marketing.

All these services are usually provided by advertising agencies. However, you can start a business with one specific service. This will reduce costs, and if you wish, you can expand your business after making a profit. The most common option today is precisely Internet promotion due to its effectiveness and popularity.

However, a narrow agency has its drawbacks. So, clients who need a full-fledged advertising company are unlikely to agree to contact several small advertising agencies, most likely they will choose a company that can provide all services at once.

On the other hand, for a small, narrow-profile agency, the costs will be minimal.

Pros and cons of the advertising business

This is explained by the high demand for such services. Everywhere businessmen open large and small businesses that need to promote their services.

Also, the pluses include:

  • high cost of advertising services;
  • the ability to start a business without large financial investments;
  • stable income with regular customers;
  • the ability to do business from anywhere.

An advertising business can be especially successful if its owner knows how to generate creative ideas and has innovative thinking. This will keep customers interested and help build their loyalty. After all, the more original an advertising campaign, the greater the result it will give. Therefore, it is important to gain the client's trust so that he regularly contacts your agency for advertising campaigns.

In order to get new customers, you need to tell about your product. It is not enough to tell your friends and acquaintances about a product or service. If you need a lot of clients for little money, you will have to work on the effectiveness of advertising.

Main types of advertising

Advertising is a direction in marketing communications, within the framework of which information is disseminated to attract attention to the advertised object in order to form or maintain interest in it.

In our case, advertising will attract the attention of people in order to sell a product or service.

By location, the main types of advertising:

  • outdoor - presented in the form of billboards, posters on public transport, signs, signs, etc.;
  • through the media - television, radio, newspapers and magazines;
  • internet banner, social networks, contextual advertising, hyperlinks.

Advertising rules and factors

There are only two important rules for advertising for small businesses:

  • Customer flow - a feature of advertising for small businesses is not increasing brand awareness, but increasing sales. The most important purpose of advertising is to tell buyers and customers about specific offers of goods and services, to attract new customers, and to keep old ones.
  • Profitability - if you invest 100 rubles in advertising and get 500 rubles in profit, then it works. If you spend 100 rubles on advertising and get 30 rubles, then such advertising is ineffective and must be disabled.

Factors affecting advertising performance:

  • The target audience is people who have some kind of need and your product or service covers it. If you try to sell a product to those who don't need it, nothing will work. They simply won't buy it. Therefore, you need to sell only to those who are interested in it - the target audience.
  • Product characteristics - any product or service has its own characteristics in addition to the price. If it all came down to price, everyone would drive Logans and eat pasta and cereals. People have completely different needs. All services and goods can be divided into a large number of characteristics: warranty, delivery terms, quality, etc. You need to understand the strong characteristics of your product or service and talk about them in advertising.
  • The distribution channel is the means that allow you to convey advertising to the audience. For example: leaflets, outdoor advertising, social media. children and others. The choice of distribution channel depends on the nature of the business, the reach of the target audience and the profitability.
  • Advertising content - according to statistics, a person only looks at an advertisement or leaflet for a few seconds, and therefore it is very important what is depicted and written in your advertisement. It is best to concisely write the strong characteristics of the product or service and the benefits for the client when contacting you.
  • The size of the advertising material - of course, a large sign will quickly "catch the eye" of the client and attract more attention. The efficiency is also influenced by the proximity to other advertising. It happens on the contrary, they place their middle next to several large signboards, "playing in contrast."
  • Analysis of competitors - it is very important to find an answer to the question - why your client, having a choice between your proposal and the proposals of competitors, will choose yours? For this, an analysis of competitors is done in order to understand their strengths and weaknesses.
  • Number of repetitions or duration of placement - if the decision to purchase a product or order a service is not made immediately, but after some time, it is important to remind the client about yourself so that he does not forget you and makes a choice in favor of the advertised offer. The main thing is not to overdo it as constantly repeated ads can be annoying.
  • The amount of funds spent - for example, the average conversion of an online store is 1-2%, which means that out of 100 people who came through advertising, only 1 or two people will make purchases. And if you spend money only to attract 50 people, it is very likely that there will be no sales.

types of effective offline advertising

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