How to start an advertising agency from scratch

Times Square (Photo: Joshua Earle / Unsplash)

Advertising is an integral and active part of the complex marketing system of a modern enterprise. The need for specialists who professionally promote products and services to the market is constantly growing. Therefore, the opening of an advertising agency is a promising idea if you successfully choose the direction and target group of service consumers.

Only a handful of large businesses can afford to keep an advertising department staffed. Most prefer to order services from a professional agency. Specialists use proven tactics, they know perfectly well what information channels and other communication methods need to be used to promote a specific product, they are able to speak with the target audience in a language it understands.

The process of creating any advertising service is divided into three stages.

  • Creation of a creative creative product: script of an advertising campaign, slogan, logo, etc. This product is made for a specific customer, it is impossible to create it in advance and save it for future use.
  • Directly production of material media: banners, videos, articles for display on media channels.
  • Placing information using the services of advertising distributors: television, print media, Internet sites, billboard space renters.

Thus, RA, on the one hand, acts as a direct executor of the service for the creation of creative ideas, on the other hand, as an intermediary between manufacturers of material products (leaflets, posters, layouts) and the owners of advertising spaces. Large companies often combine several types of services.

Types of advertising agencies

In terms of the range of services provided, companies operating in the advertising field can be conditionally divided into universal (full cycle) and specialized. An intermediate position is occupied by multidisciplinary firms performing a set of interrelated works. Several groups stand out among them:

  • Creative agencies. They carry out design work, produce printing products and souvenirs, engage in publishing activities, and offer artistic photography.
  • Media agencies. Primary direction - media planning, consulting, creation and placement of advertising in the media, tracking its effectiveness.
  • Advertising and production companies. They are engaged in the development of design, corporate identity layouts and at the same time produce one or several types of advertising media.
  • Advertising and design firms. They produce indoor and outdoor advertising, decorate signs, buildings, shops, rent out space for billboards.

More than 50% of RA are production and design companies, and about 30% are creatives who develop and form the original style of companies, goods, services. They create new memorable images, image and product slogans, design packaging and uniforms.

Internet advertising specifics

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The main thing about the business plan of an advertising agency in the year

Opening an ad agency: defining the basics

The first steps to starting an advertising agency are usually the most difficult. So many problems need to be solved! And, first of all, choose the right company format that will meet both your desires and your capabilities. Well, if you are familiar with the basic parameters of an advertising agency, you understand what formats of companies generally exist in the domestic market. And if not? Fortunately, this is not a reason to abandon your goal, the main thing is to arm yourself with the necessary knowledge.

So, we define the basics of an advertising agency. What do you need when starting a new company? First of all, you should determine the format of your company. This will allow you to calculate the approximate budget of an advertising agency and decide whether you will pull such a project financially. Many entrepreneurs prefer to start with a small firm, which is mainly involved in the provision of intermediary services. Small staff, modest orders and the same modest income. According to experts' forecasts, such companies have practically no chances to succeed in this market segment.

Counting on high profits, it will take a lot to invest in the development of the company. When opening an LLC for the provision of advertising services, prepare a package of documents in advance for registering an advertising agency so that there are no problems with regulatory authorities. You can also save money on renting an office, since negotiations with the bulk of clients will be conducted on their territory. So huge areas and renovation are not at all what you need. But on the technical equipment of the office, if you are going to independently produce an intellectual product, you should not save. Designers will need powerful computers and quality software.

Creative staff is the basis on which high-quality advertising services are nurtured. But good specialists need to be paid good salaries, otherwise they will go to your competitors. For work in many areas today it has become convenient to hire freelancers who can bring new ideas. To open and organize a new type of advertising agency, you will need a staff of 6-8 people, no less. And remember that there is no way to fail in such a business. The slightest mistake can lead to clients bypassing your agency. Regardless of whether you are taking on such a business as advertising in transport or advertising projection, everything must be done at a high level.

A professional example of a business plan for opening an advertising agency from scratch with ready-made calculations will help a beginner and experienced businessman to reduce risks to a minimum and without losses for himself. It describes in detail the sequence of steps for creating this business. You will find out what responsibilities the director of an advertising agency may have, figure out how to calculate the ROI of an advertising campaign and other events. Choosing the right direction for yourself, you will constantly move forward, towards the intended goal, and nothing will prevent you from achieving it and staying on top of success.

Setting up an advertising agency: how to become a monster

How to turn from a small, unknown advertising agency into a monster of the advertising business, earning tens of thousands of dollars a month? The best minds of the advertising business fight this question every year, but not everyone manages to find an exact answer. Opening a business like a modest advertising workshop is not so difficult, but growing it into a competitive company is much more difficult. Only an active advertising policy will lead you to the pinnacle of success, the main thing is to choose the right direction.

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This business plan is a description of the implementation of a project to create a Real Estate Agency (hereinafter referred to as the Agency) with a payback period of 2 years.

Objectives of the project: the organization of the Agency pursues 3 main objectives:

  • Creation of a highly profitable enterprise with a short payback period
  • Getting a stable income
  • Saturation of demand consumer market in the field of services for renting real estate, buying / selling real estate, and other transactions related to real estate

Source of financing: own funds, or a commercial loan in the amount of 2,000,000 rubles at 20% per annum

Payments of borrowed funds and interest on a loan begin from the 1st month of the implementation of this project.

Business form: LLC

Form of taxation: at the choice of the Customer

Total cost of the project: 2,000,000 rubles

Payback period: 2 years

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Attention! The free business plan offered for download below is an example. The business plan that best suits your business conditions needs to be created with the help of specialists.

My name is Oleg Burkasov and I am from Ulyanovsk. I graduated from the Faculty of Law 3 years ago. Then he got a job as an intern at a company that was engaged in the sale of soft drinks. After a month of internship, I was hired as a junior lawyer. But since the staff was small, I also had to perform certain functions of a personnel officer.

Recruiting business plan

History of my business creation

During my career, I have repeatedly turned to recruitment agencies, which saved my time enough. However, I will say from experience that not all recruiting agencies work effectively and conscientiously.

After 2 months I found real professionals in this field. Almost all of the personnel candidates they proposed passed the interview successfully and no less successfully continued to make their career in our company.

About a year ago, the lead manager of the KA, with whom we were at that time in a rather friendly working relationship, suggested that I open my own recruiting agency with him. This is how my own business started

A good business plan is the first step to a successful business

Our initial capital was small and the first thing we had to do was to enlist the support of investors.

Having found the necessary people, we started developing a business plan.

We did not have much money and we could not afford to order from the appropriate specialists the service for the development of a specific plan on which further business was to be built.

A detailed business plan of an advertising agency will determine the feasibility of financial investments in a new business. The efficiency of any enterprise depends on the increased demand for services or products. To successfully overcome the competition, you need to attract the maximum number of customers. Therefore, advertising services are in great demand in the modern market. Let's consider in detail the features of the development of documentation.

Project Summary

It is not easy for a budding entrepreneur to find a free niche to start a new business. Competition in existing industries requires specific marketing moves to expand the customer base.

To assess the effectiveness and determine the approximate payback period, a detailed business plan of an advertising agency is being developed. The document takes into account the analysis of the market providing such services to determine competitiveness. Predicting possible risks will help reduce losses. The advertising agency's business plan covers all possible expenses. Their comparison with the expected income will determine the profitability of the enterprise.

Competition Analysis

It will not be difficult for a new company to join the existing advertising services market. The main prerequisite is the ability to use non-standard moves, be flexible, non-traditional thinking and creative approach to business. The best option is considered if the head of the company is a person with knowledge of the advertising business.

Among the main competitors, the leading place is occupied by large companies that have been building their reputation for years. It will take a lot of effort to win back a share of the market from them. A special role is assigned to the design of proposals. They use unconventional solutions to attract customers.

At the initial stage of doing business, you should not count on orders from large enterprises serviced by well-known agencies. Therefore, planning of activities should be based on cooperation with small and medium-sized companies. For this, when developing a detailed business plan for a new advertising agency with calculations, the main focus is on the mid-price segment.

List of advertising agency services

There are a number of areas for the successful promotion of goods and services. You can focus on one activity, combine different methods, or use the entire spectrum. A promising agency provides clients with the following services:

design of advertising brochures;

website opening and promotion;

Buy an advertising agency business plan

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