DIGITAL ADVERTISING BUSINESS PLAN GUIDE
Are you considering starting an advertising agency? This business idea is just exploding with lots of possibilities.
Starting an advertising agency can be very rewarding and can be run from a home office.
If you have advertising experience or you have worked in an advertising company before, you can start a successful advertising agency of your own. Though the competition in the industry is high, with smart marketing strategies in place, you can always scale up.
As an advertising agency makes money in different ways, it is very important as an entrepreneur to decide what type of advert agency you want to run.
An advertising agency can be started with a small capital budget as it doesn’t sell products but services.
If you are willing to endure through perseverance teamed with dedication and the ability to take risks, then you have enough potential to start up an agency.
Here are possible steps you need in starting an advertising agency:
- Decide on Your Goal of the Business
Before starting your advertising agency, you will need to decide if you want to build the next big advertising agency or you want to run it as a part-time business. your goal will determine how you will run your business entirely.
- Decide the Types of Advertising Agency You want to Run
Like I said earlier, an advertising agency makes money in many ways. Traditional agencies create advertising copies to be used in television, radios, billboard, signs, etc.
Other advertising agencies just focus on web advertising which includes search engine optimization and keyword research tactics.
So, you have to decide the types of advertising you want to run and list your services. Most big advertising agencies offer a wide range of services while others specialize in two or three services.
Figuring out a specific niche will help guide you in areas you should concentrate your efforts in.
- Create a Business Plan for Your Advertising Agency
In starting an advertising agency, you need a detailed business and operational plan. This is essential if you intend to get loans or getting angel investors to invest in your agency. Aside from that, you need a business plan to run your business.
A good business plan for an advertising agency should contain:
- Executive summary of the business.
- A projection of the profitability of the firm.
- Operational cost.
- Expected capital.
- Marketing strategies etc.
When you have a business plan, it gives you instructions on sticking with the goals in mind.
- Obtain Business License and Permits
Before you can start an advertising agency, you will need to visit the Internal Revenue Service to acquire the license and permits to run such a business.
Without these documents, your business operation will be disturbed and brands may not want to work with you thinking your agency is not legit.
- Get an Office Location
After your agency has been granted the permit and license to operate, the next step for you is to go get a location where you will site your advertising agency.
Set the office up with office equipment like computers, dedicated fax machines and phones, printers, and furniture.
Even if you want to be running your advertising agency from home, your home office still needs to be equipped with office supplies and equipment.
- Build up a Portfolio
For potential clients to trust and want to work with you, you will need to show them your portfolio because it is your selling point. Your portfolio is a collection of your past work in the advertising industry.
Most people that end up starting their own advertising firm have worked in the industry before as an employee.
But, if you have not worked in the field before, you will need to start taking small work from small clients so you can use it to build up your portfolio.
Another option is to go work as an employee for an advertising firm so you can gather experience and credentials that can be used in your portfolio to get potential clients.
- Build a Website
If a business doesn’t have an online presence, then it will be hard to reach out to potential clients. Your business website is your only business card. If you don’t have a professionally designed website, you are invisible to a large market.
Make your website very attractive. Include your company contact information, why clients should work with your agency, testimonials from past satisfied clients, and also add a blog to it where you will be publishing content that will be valuable to your clients.
Don’t forget to always keep your website updated with advert campaigns and articles.
- Start Building Your Clients Base
This is the most important part of the business. You need to decide who you want to market your services to depending on the advert services your agency specializes in.
Consult local and regional businesses who may be interested in your services and pitch them.
Also, ask your contacts for referrals. Focus on contacts who work with big businesses and agencies. If you have worked in advertising before, you should have a list of contacts to pitch.
- Introduce Your Agency to Media Outlets
It is also important that you introduce yourself to media outlets that you will want to use so you can know their advertising rates, demographics, and specs.
Discuss benefits your agency will get using their media outlet for your clients’ advertising jobs.
Most media outlets offer a 10% discount to agencies.
- Offer First Deal as a Bait
This is one best way to win customers to give your agency a try. You know most businesses will not want to try a new company because they feel they are inexperienced to execute their work.
To get this kind of potential clients, offer a low-cost first-time rate to build trust between you and the customers.
- Run Powerful Campaigns to Create Customer’s Awareness
Your campaign may use elements of direct mail of marketing materials, emails and phone calls, or the internet.
Facebook and Twitter ads can be used to create awareness of your agency on social media. Always do this to stay on top of your advertising game.
DIGITAL ADVERTISING BUSINESS PLAN EXAMPLE
Here is a sample business plan for starting a digital media business.
If you want to succeed as a business owner, having a business plan is non-negotiable. Creating a business plan helps you to put your business in proper perspective.
So, if you are intending to start a digital advertising business, the first thing you should do is to create a business plan.
This post is a sample of a digital advertising business plan that you can use as a template for creating your own.
BUSINESS NAME: Dazzle Digital Media
Table of Content
- Executive Summary
- Vision Statement
- Mission Statement
- Business Structure
- Products and Services
- Target Market
- Sales and Marketing Strategy
- Cost of Starting
- Sources of Capital
Dazzle Digital Media Inc. is a digital advertising company that will be located in California in the United State. The advent of the internet has led to a shift in traditional media advertising to digital advertising.
There are about 3.77 billion internet users and 2.80 billion social media users in the world. Now, a lot of people spend more time on the internet than other media outlets.
So, to reach people and sell to them through advertisement, you need to go online. This is why using the digital medium of advertising is non-negotiable for every savvy entrepreneur who wants to reach more people and make great sales and good profits.
Because of this development, there has been a high increase in the demand for digital advertising agencies. People are in dire need of competent and result-oriented digital advertising agencies that can effectively handle their advertising campaigns online.
Though there is a handful of competent digital advertising agencies, they are not enough to meet the high demand that is on the ground. We have decided to take advantage of this opportunity to provide a solution that people are not only in need of but are also willing to pay for.
This is what birthed Dazzle Digital Media Inc. At Dazzle Digital Media Inc. we intend to dazzle our clients with wow results of the advertising campaigns we run for them so that they will keep coming back for more and also refer us to others.
To achieve this, we will make sure that we hire competent professionals in the field of digital advertising who will help our clients develop effective digital advertising strategies that will produce successful results.
We will make sure our customer service is excellent such that we can expressly attend to our client’s service order and also treat them with politeness and make them feel special.
Dazzle Digital Media Inc. will be established by Mr. Bobby Brown and Mr. Danny Edwards.
Mr. Bobby is a computer scientist cum programmer while Mr. Danny is a Digital Marketing Strategist who has helped reputable companies develop super-effective digital advertising campaigns.
The two of them using their experience and expertise intend to build a top-notch digital advertising business that will be widely known in the whole of the United State.
To become a highly sought-after digital advertising agency in Florida and throughout the United State.
The mission of Dazzle Digital Media Inc. is to offer our clients quality service that delivers results that will make our clients always come back for more.
We are going to put in place a viable business structure because we know its importance in building a successful business. Here is how our business structure will look like:
- Chief Executive Officer
- Digital Marketing Strategist
- Project Manager
- Social Media Manager
- Content developer
- Web/Blog developer
- Human Resource Manager
- Marketing and Sales Executives
- Security Guards
Products and Services
Dazzle Digital Media intends to offer a wide range of products and services which include:
- Search Engine Optimization
- Search Engine Marketing
- Social Media Marketing
- Influential Marketing
- E-commerce Marketing
- Content Marketing
- Mobile Marketing
- Video Marketing
- Email Marketing
We know for our marketing campaigns to be effective, we must focus on targeting a fraction of the market. This is why we have decided to define our target market. Our target will comprise of:
- Corporate Organizations
- Public Parastatals
- Online Entrepreneurs
- Branding and Advertising Agencies
- Blue Chip Companies
- Television Stations
- Printing Press
- Sport Organizations
- Religious Organizations
- Political Parties
Sales and Marketing Strategy
Marketing is essential to the success of any business.
For our digital advertising business to succeed, we need to employ effective sales and marketing strategies. This is why we have carefully mapped out a marketing strategy with the help of our savvy marketing teams.
Cost of Starting
From our estimation, the total cost we will need to start up our digital advertising business is $300,000.
This will cover the cost of registering the business, renting office space, purchasing the facilities and equipment, hiring business analysts and marketing strategists, recruiting staff, and payment of our staff salaries for the first three months.
Sources of Capital
Mr. Bobby and Mr. Danny have been able to raise $150,000 from their personal assets. They plan to get a $50,000 loan from their friends and family member. And then get the remaining 100,000 by applying for a bank loan.
With this digital advertising business plan sample, I don’t think you have any excuse for not creating your business plan. Start now!