Business plan for your advertising agency

Advertising is one of the most demanded areas in the service sector. Such a business idea from scratch should be crowned with success if it is used by a person with business acumen and creative thinking. The advantage of such a business is that you do not have to invest large sums of money to open it. So how do you open an advertising agency?

Advertising agency: what is this animal and what is it eaten with?

By an advertising agency, people usually mean different types of organizations with different types of activities. An advertising agency can be oriented in the following directions:

  • promotion of client's goods and services in various ways;
  • sale of advertising on the network: promotion or creation of sites on the Internet;
  • sale of advertising opportunities offered by other agencies;
  • the ownership of advertising space, as well as renting them out;
  • the production of various designs: lightboxes, banners, stands, signboards, outdoor advertising of various kinds.

All these areas are currently being dealt with by advertising agencies existing in Russia. Despite the great competition in this type of business in advertising, the services of advertising agencies are becoming more and more in demand every year. For success, it is only important for you to choose the right direction, idea and act strictly according to a well thought out plan. You can open an agency from scratch, you can do it with capital investment. It's over, the hardest thing to start from scratch. But this does not mean at all that such an undertaking will not be crowned with success.

What skills are essential when starting an advertising agency?

Considering that when you open an advertising agency, you will have to deal with many things on your own for the first time, please note that for the development of such a business it is not enough to come up with an idea and have only one business acumen. An advertising agent cannot do without such qualities as:

  • communication ;
  • mobility ;
  • constant availability on the Internet (on Skype, on social networks);
  • ability to withstand stress.

In what order should you proceed?

About the types of activities

How to start an advertising agency that customers will immediately like? The idea is this: in order for your company to offer its customers a wide range of services from the first days of its existence, it is necessary to establish cooperation with media companies in your city, which include:

  • help systems;
  • radio;
  • outdoor advertising agencies;
  • television;
  • newspapers / magazines.

With each of these companies, you should conclude contracts for advertising placement, making a discount for your customers. For example, advertising videos can be placed on television, audio commercials on radio, and contextual banners in help systems; in newspapers and magazines - print ads. Don't forget about outdoor advertising agencies.

Business plan for your advertising agency

Nesterov A. An example of an advertising campaign // Encyclopedia of the Nesterovs

An example of an advertising campaign for a new brand - the magazine "Housewife".

The ad campaign example is based on the magazine, which is a practical encyclopedia for housewives of all ages. Its content reflects the many-sided life of a modern woman - a housewife.

Sections and articles of the magazine are devoted to the themes of home coziness and comfort, beauty and health, family and raising children, food and handicrafts, travel and much more.

Headings of the magazine: news, home comfort, beauty and health, useful on the farm, kitchen, my family, needlewoman, shopping, outside the home, in harmony with nature.

Advertising campaign plan

Before starting an advertising campaign, the advertiser sets a strategic goal, determines the best way to achieve it, develops tactics for his actions, coordinates these tactics with other actions for the sale of goods or services, and then begins to implement the planned activities. Thus, every ad campaign starts with a plan. This publication provides an example of an advertising campaign plan.

An advertising campaign plan is a document that regulates all activities within an advertising campaign. The plan contains the rationale for the advertising campaign, the planned activities and the evaluation of the advertising campaign.

In any type of advertising activity, one factor remains unchanged - only those advertisers who work according to a sensible and well-thought-out advertising campaign plan achieve the greatest success. They know what they need advertising for, who it is addressed to and what results are expected from it. Advertising for them is a planned business of organizing sales and making a profit, and not a "one shot" that may turn out to be a blank. When advertising is viewed as something separate from product sales and marketing, as "art for art's sake", it is a fatal mistake, and the advertising campaign is doomed to failure despite all the advertiser's plans. He forgets a simple truth - the purpose of advertising is to get as many potential buyers as possible to know about the product in the planned time frame. Firms communicate with consumers through the media, trying to do so as if they are conducting a live, direct dialogue.

The following aspects must be included in the advertising campaign plan:

  • Analysis of the market situation.
  • Product rating.
  • Consumer rating.
  • Assessment of competitors.
  • Marketing goals.
  • Budget.
  • Recommendations on advertising, mass media, sales promotion.
  • Evaluation of campaign results.

The advantage of a business like an advertising agency is that you don't have to invest large sums of money to open it. So how do you start your own ad agency?

Approximate data:

  • Monthly income - 280,000 rubles.
  • Net profit - 67 830 rubles.
  • Initial costs - 414,800 rubles.
  • Payback - from 7 months.

Note: This business plan, like all others in the section Business plans, contains calculations of average prices, which may differ in your case. Therefore, we recommend that you make calculations for your business individually.

In this article, we will draw up a detailed business plan for an advertising agency with calculations.

Service description

Provision of advertising services for various companies. The work will include consulting, selection of a suitable advertising strategy, risk assessment, the actual provision of advertising services (creating the necessary accompanying elements such as leaflets, as well as their distribution). Please note that we are considering a situation when an entrepreneur opens a small advertising agency.

Market Analysis

The market for advertising services is large enough, it is constantly expanding. How can you characterize it? The demand for services is constantly growing, the volume of work provided is also growing. There is no seasonality in this type of business, if we evaluate the entire sector. The seasonality of companies applying for advertising does not significantly affect their work. The bulk of the market applies for advertising services on an ongoing basis.

Today this particular market segment is the most promising among all available services. The success of almost any business today depends on advertising. Thus, we can talk about a high level of demand.

The advertising agency market is not more than half full. Therefore, it is quite easy to enter the market. In this type of business, it is very important to be flexible, smart, and creative. The ideal option would be when the company is headed by an experienced, knowledgeable person working in this area. It is difficult to regulate work in a niche about which the entrepreneur does not have knowledge. At first, he himself can participate in the development of promotions.

The advertising sphere develops every year: any start-up company is interested in rapid development and attracting customers. Professional assistance in this matter is offered by specialized advertising agencies. Due to the high demand for advertising services, it makes sense to start your own business in this direction. Below is a detailed business plan of an advertising agency from scratch with approximate calculations and a development forecast for 2021.

Advertising agency: project goals

The type of activity of the company will be formulated as an enterprise for the production of advertising, placement of the finished advertising product on the advertising sites of the agency.

  • - opening and developing a highly profitable advertising agency;
  • - making a profit at a high level;
  • - filling a free niche in the advertising services market.

A summary of the future project based on preliminary calculations will be as follows:

  • - initial investment - about 2 million rubles;
  • - investment return period - 10-24 months;
  • - net profit project - from 330 thousand rubles per month.

To prepare for the opening of an advertising agency, you will need to contact a bank structure to obtain a commercial loan for business development. The approximate size of the loan is 1 million 900 thousand rubles. It is the credit funds that will become the main part of the start-up investments in opening an enterprise, so the total cost of the project will be equal to the amount of credit. The total amount of paid interest, or the investor's income, will amount to 129.5 thousand rubles. It is planned to return borrowed funds from the first month of the enterprise's operation. Provided the interest rate on the loan is 17.5%, the payback period should reach 18 months, and the total economic effect for the conditional life cycle of the project in question is 1 million 135 thousand rubles.

Such calculations are very approximate and require confirmation. Therefore, in the financial part of the plan, detailed calculations of costs and future profits for all main points are provided.

The main features of the advertising business - video:

Advertising agency: features and characteristics of the object

Most modern companies do not do their own advertising on their own. In most cases, they entrust this task to professional advertising agencies, which saves time and achieves greater efficiency. Agency specialists analyze each specific situation, draw up a specific task that is relevant for a specific client, create and approve a plan. Based on the results of the work performed, the agency's managers prepare a presentation and a media plan, coordinating it with the customer.

Having drawn up a business plan for an advertising agency, you will receive information about the payback of this enterprise. And in the article you will find a guide on how to do it.

Capital investments: from 280,000 rubles. Payback: from 6 months.

This article will consider in detail the issue of the main sections that the business plan of an advertising agency should cover.

Why this particular line of business?

If only because without competent promotion, any direction of entrepreneurial activity can be doomed to failure.

In simple words: what difference does it make if you make the most beautiful ceramic cups in Kemerovo if no one knows about it?

But experienced businessmen are well aware that the success of a business directly depends on how wide the audience knows you.

Also, what is the company's reputation in the eyes of customers, how many people who have contacted you will conclude a deal in the end?

Firms are ready to pay a lot of money for high-quality advertising campaign.

And such conditions are an excellent basis for the development of your business.

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