Advertising is a part of the marketing strategy of a company. The role played by the advertising campaigns, in making the business a success, is not a hidden fact for a businessperson. A large amount is allocated in the budget for such campaigns. Small companies mostly do their advertisement on their own, while medium and large size companies either have a separate department within the company to do the needful or they outsource their advertising to the professionals.
In this article, we shall study how to start an advertising agency. The advertising agency could be very stressful. However, a person who is creative, enjoys facing a challenge and is skilled at networking, will find it a perfect business opportunity matching his aptitude.
There are different types of advertising companies, which perform different functions. Some of them are given below:
- Consulting Companies: These companies provide advice to small businesses to improve their marketing efforts.
- SEO Specialists: These companies help in bringing the websites of their clients on the First page(s) of Google, when searched by some particular keywords.
- Online Advertising Agency: These companies help their clients to do online business through AdWords, Social websites, other relevant websites and blogs.
- Media Buying Company: These companies do their own online business by becoming affiliates of other companies and get commission on the sale of their products, if made through their company’s website.
- Traditional Online Marketing Company: These companies help their clients getting traffic to their website. These companies may also sell their own products online or become affiliates of other companies.
- Traditional Marketing Company: These companies are generally small and are jack of all trades connected with the advertising agency. Their advertising strategy covers all types of advertising procedures. These companies are best suited for small businesses, particularly the new ones.
No business can be successful and flourish without a proper advertising campaign. For this purpose a reasonable budget is allocated every year depending upon the size of the business and the availability of funds. As already said, mostly small businesses do their own advertising. However, some get help from a small traditional advertising company. If you know how to start an advertising agency you can make a lot of money. Since, our blog focuses on the home based businesses, we shall confine ourselves to starting a small traditional advertising business.
Skills Required To Start an Advertising Agency:
Before starting to think over to plan an advertising agency / advertising business, you must evaluate yourself and find out whether you possess the skills required to do this business. Some of the essential skills required are listed below:
- You should have good communication skills.
- You should have an aptitude in artistic and innovative work.
- You should be able to face challenges.
- You should be able to work comfortably under stress.
- You should have an ability to develop PR.
- You should be a hard worker.
- You should understand the advertising options which you may offer to your customers, depending upon the type of business they are doing.
- You should be able to meet the deadlines within a specific time frame.
- You should be able to manage the required job within the available budget.
Plan Your Advertising Agency Business:
It could be a home based business with a small investment. You essentially need a room in your house, having access to the outside road which can be converted into an office. The office should give a professional look. It should have all facilities of a modern office like good office furniture, computer, printer,fax machine, scanner, telephone, an internet connection and other office supplies etc. If you do not have such facility, do not ask your customer to come to your office. Rather meet them in their office or a place of their choice or in a restaurant over a cup of coffee or lunch.
Another option is to have a rented office, in an easily approachable area, with parking facility. However, this will cost you a little more and extra funds will be required to pay some advance rent and security deposit. Also find out the legal requirements in your area to start an advertising agency.
You need to develop PR with relevant personnel at printing presses, local newspapers, TV stations, Radio stations, musical companies, art designers, videographers, commercial photographers and so on. You will need their services for advertising campaigns for your clients. Therefore, you should have developed your contacts with them before hand. You discuss your advertising strategies with them and find out their charges for each segment of work. This will help you to quote your charges to the client for a particular advertising campaign.
You may join an advertising company before starting your own advertising agency to have an on hand experience of the job, to develop PR with the service providers in this business and to find some contacts of the potential customers.
Marketing Strategy of an Advertising Agency Business:
As you are a newcomer in the business, it will be very challenging for you to find the first client. Keep in mind that it is very difficult, if not impossible, to convince business persons to switch over their advertising campaigns from their existing advertisers to a newcomer whose capabilities are unknown. It may, however, happen if they are not satisfied with the existing advertisers. You should, therefore, concentrate more on fresh businesses. Fresh businesses normally have financial constraints and they do not have a large amount of funds available for introducing their products or services to the market. They are also looking for new advertising companies which could do their job in a small budget.
You should plan to call on the relevant persons of different organizations and tell them about your approach towards advertising their products and services. The following methods of advertising may be discussed to finalize one or more methods suitable for the organization.
- Ads in local newspapers
- Display at the exhibitions
- Distribution and display of flyers
- Display of artistically designed boards at prominent places in the city
- Production of documentaries and movies for display in the cinema halls, on TV through cable operators.
- Audio ads to be transmitted through local Radio Stations
- Bulk emails to different groups. This would be the most economical and fastest way of advertising. It will not have any limitation of material, images or text and the client will have direct replies from the prospective customers interested in their products and services.
- Making a website for the client will also be a good option for marketing their products and services. You may help your client to develop the website through some web designers.
You must keep in mind that the clients are always interested in achieving the ultimate goal of advertising i.e. increase in the sale of their product. If this goal is not achieved all your efforts are worthless and ruined.
How to Market Your Advertising Agency Business:
- Make an artistically designed high quality website for your advertising agency. Customers are interested in your work. The website should speak of your work. A bad website would reflect a bad advertising company. List out details of your work and your contact address with telephone number.
- Check your email box twice or thrice daily and reply to the queries raised by the visitors of your website. These visitors could be your future clients.
- Get plenty of beautifully designed Business Cards printed and give away to each and every person you come across during your visits to different organizations and during meeting various people.
- Revive your relationship with the persons you already know and those are running a business or are directors of some organizations. Make an interesting and convincing proposal for their organization advertising campaign. Do not forget to tell people your experience in the field and small description and/or presentation of your previous job, if related to the advertising agency.
- Use the yellow pages to find out newly established organizations. Contact their relevant personnel on the telephone or email or by writing a letter and request them for providing you some time for discussion of their interest. You may require a series of meetings with them before they are convinced and offer you some business opportunity. There are possibilities that the newly established organizations would still be looking for advertising companies and you get a chance to fetch some business.
- Try to become a member of organizations like Local Chambers of Commerce and some advertising associations.
- Be aware of the new trends in advertising business. Read articles relevant articles and attend seminars etc.
- Distribute some gifts to your potential and the existing clients with your company name, address, telephone number, email address and logo on it.
At the end of our topic “how to start an advertising agency” I would like to draw your attention to some other good home based business like sell gift baskets online, start photography business, start rubber stamp business etc.