advertising agency business plan

How to Create an Advertising Agency Business Plan

Blog > how to create an advertising agency business plan, table of content, introduction, executive summary, company overview, market analysis, target market and customer analysis, competitor analysis, services and offerings, marketing and sales strategies, operational plan, human resources and talent acquisition, financial projections, budgeting and resource allocation, client acquisition and retention, technology and innovation, risk management and legal compliance, expansion and growth strategies, exit strategy, our other categories.

• Company Valuation
• Pitch Deck Essentials
• Raising Capital
• Startup Guide
• Uncategorized

Reading Time : 24 Min

Business plan 101.

Starting an advertising agency is an exciting venture, but success requires careful planning. A comprehensive business plan is the foundation of your agency’s growth and profitability. In this blog post, we will guide you through the process of creating a well-structured advertising agency business plan that aligns with your goals. As an expert startup consultant service provider, Stellar Business Plans is here to support you in crafting a winning strategy that stands out in the competitive advertising industry.

The executive summary is the gateway to your business plan, offering a concise overview of your agency’s key elements. This section is your chance to make a strong first impression and capture the reader’s attention. While providing an elevator pitch, emphasize the unique aspects of your agency that set it apart from the competition. Include your mission and vision statements, key services, target market, and the most significant financial projections. Keep it brief, engaging, and compelling to entice investors, partners, and potential clients to read further.

Stellar Business Tips:

• Keep the executive summary clear and concise, focusing on the unique value your agency brings to the market.
• Highlight your agency’s key differentiators, such as specialized expertise, innovative approaches, or a client-centric approach.

Example: “XYZ Advertising Agency offers data-driven solutions that deliver up to 30% higher conversion rates for our clients, thanks to our cutting-edge AI-powered ad targeting algorithms.”

The company overview provides essential background information about your advertising agency. Detail the founding story, explaining the inspiration behind your agency and the driving force that led to its establishment. Introduce the key stakeholders, founders, and leadership team, highlighting their expertise and experience in the advertising industry. Clearly state your agency’s mission, vision, and values to showcase your commitment to delivering exceptional services. Additionally, provide insights into your agency’s current status, such as the number of employees, locations, and awards or recognitions received.

• Personalize the company overview by sharing anecdotes or personal experiences that motivated you to start the agency.
• Emphasize your team’s collective strengths and past successes to build trust and credibility.

Example: “Our agency, Stellar Ads, was founded by marketing enthusiasts with a shared passion for creative storytelling. Our team members collectively bring over 50 years of experience in successful advertising campaigns for Fortune 500 companies.”

A thorough market analysis is crucial to understanding the advertising industry’s current state and future trends. Conduct extensive research on market growth rates, industry size, and key drivers shaping the advertising landscape. Identify emerging technologies and digital platforms that are disrupting traditional advertising methods. Gather data on consumer behavior, preferences, and engagement with different advertising channels. Use industry reports, market research, and expert insights to back up your analysis and projections.

• Utilize reputable sources and industry reports for market data and statistics.
• Focus on current and future trends that will impact the advertising industry, such as the rise of mobile advertising or the growth of influencer marketing.

Example: “According to the Global Advertising Market report by Grand View Research, the global advertising market is projected to reach $654.55 billion by 2028, with digital advertising accounting for over 50% of total ad spending.”

Defining your target market is critical for tailoring your advertising strategies to meet specific needs. Identify the primary industries or sectors you want to serve and the demographics of your ideal clients. Create buyer personas to better understand the pain points, challenges, and aspirations of your target audience. Conduct surveys or interviews with potential clients to gain valuable insights into their expectations from an advertising agency. Analyze competitors’ clientele to identify gaps and opportunities for your agency.

• Consider conducting focus groups or beta testing campaigns to gather feedback from potential clients before launch.
• Use social listening tools to monitor online conversations and understand customer sentiment regarding advertising trends and campaigns.

Example: “Our target market includes tech startups and e-commerce businesses in the B2C segment, aged 25-35, who seek innovative and visually captivating ad campaigns to stand out in a competitive market.”

A comprehensive competitor analysis helps you position your agency strategically in the market. Identify direct and indirect competitors, evaluating their strengths, weaknesses, and market share. Study their marketing and sales strategies, service offerings, pricing models, and client retention practices. Identify areas where your agency can excel and differentiate itself from competitors. Highlight your competitive advantages and how you plan to capture market share from established players.

• Use a SWOT analysis to identify your agency’s strengths, weaknesses, opportunities, and threats in comparison to competitors.
• Conduct regular competitor monitoring to stay updated on their new offerings and strategies.

Example: “Competitor A excels in social media marketing, but our agency’s strength lies in data-driven audience targeting, providing clients with a higher return on investment (ROI) through efficient ad spend.”

Detail the breadth and depth of your advertising services, showcasing your expertise in various advertising channels. Describe each service in-depth, including the strategies, tools, and technologies used to deliver exceptional results to clients. Provide case studies and success stories of previous campaigns that demonstrate your agency’s capabilities. Present testimonials or feedback from satisfied clients to build trust and credibility with potential clients.

• Highlight case studies where your agency’s creativity and problem-solving skills resulted in successful campaigns.
• Mention your agency’s adaptability to new advertising platforms and technologies to demonstrate your readiness for future challenges.

Example: “Our comprehensive services encompass digital advertising, content marketing, brand storytelling, and influencer partnerships. In a recent campaign for Client B, we increased brand awareness by 50% through a compelling social media storytelling series.”

A well-crafted marketing and sales strategy is essential for attracting clients and driving business growth. Outline your digital marketing efforts, content marketing, social media presence, and thought leadership initiatives. Leverage search engine optimization (SEO) to increase your agency’s visibility and organic reach. Showcase your agency’s past successes to demonstrate your track record of delivering results. Additionally, develop a sales playbook that outlines your sales team’s strategies, tactics, and target metrics for lead generation and conversion.

• Showcase your agency’s expertise through thought leadership content, such as blog posts, webinars, or whitepapers.
• Leverage client testimonials and case studies in your marketing materials to establish credibility and trust.

Example: “Our marketing strategy includes targeted content marketing and thought leadership webinars that showcase our agency’s expertise in the advertising industry. We consistently engage with our audience on social media platforms to build lasting relationships.”

The operational plan outlines how your agency will function on a day-to-day basis to deliver outstanding services. Define the organizational structure and hierarchy, including the roles and responsibilities of each team member. Emphasize collaboration and cross-functional communication to ensure seamless workflow. Detail the workflow for creating and executing advertising campaigns, from initial client briefings to campaign launch and reporting.

• Emphasize the importance of open communication and collaboration between creative and account teams to deliver cohesive campaigns.
• Implement a project management system to streamline workflow and ensure timely delivery of campaigns.

Example: “Our agency follows an agile project management approach, allowing creative teams to collaborate with account managers and clients in real-time, resulting in efficient campaign execution and streamlined processes.”

An advertising agency’s success heavily relies on its team of creative professionals, marketers, and account managers. Detail your talent acquisition and retention strategies, emphasizing a culture that fosters creativity, innovation, and growth. Offer competitive compensation packages, professional development opportunities, and incentives to retain top talent. Outline your recruitment process, employee training programs, and mentoring initiatives to nurture and upskill your team.

• Offer flexible work arrangements and a positive work culture to attract and retain diverse talent.
• Encourage continuous learning and skill development to keep your team updated on the latest advertising trends and technologies.

Example: “Our agency provides ongoing training and development programs to nurture our team’s creative and strategic skills. We foster a culture of open communication and creative freedom, ensuring every team member feels valued and motivated.”

Financial projections are essential for demonstrating the agency’s viability and potential return on investment. Provide detailed revenue projections based on your target market and service offerings. Factor in pricing strategies, growth rates, and market share estimations. Include expense projections, such as salaries, marketing, technology, rent, and overhead costs. Prepare income statements, balance sheets, and cash flow forecasts for multiple years to demonstrate long-term sustainability.

• Use conservative estimates in your financial projections to account for unexpected challenges or market fluctuations.
• Include a sensitivity analysis to understand how changes in key variables may impact your agency’s financial performance.

Example: “Our financial projections indicate a 20% revenue growth in the first year, driven by increased demand for digital advertising services. We anticipate a healthy profit margin of 15%, with prudent cost management.”

A well-managed budget ensures efficient resource allocation and maximizes the return on investments. Develop a detailed budget for various operational and marketing expenses, ensuring they align with your business objectives. Consider potential cost-saving measures and opportunities for strategic investments to fuel growth. Regularly review and adjust your budget based on performance and changing market dynamics.

• Keep a contingency budget for unforeseen circumstances, such as sudden campaign changes or market disruptions.
• Allocate resources based on data and performance metrics to optimize ROI.

Example: “Our budget allocates 30% of total funds for marketing and lead generation efforts, as we aim to expand our client base through targeted campaigns and strategic partnerships.”

Attracting and retaining clients is the lifeblood of an advertising agency. Develop a comprehensive client acquisition plan, including lead generation strategies, outreach initiatives, and networking efforts. Implement a structured client onboarding process to ensure clear communication, expectations, and deliverables. Focus on building long-term relationships and delivering outstanding results to retain clients and encourage referrals.

• Offer attractive referral programs or incentives for clients who refer new business to your agency.
• Establish a client feedback system to continuously improve your services based on client preferences and satisfaction.

Example: “Our agency maintains strong relationships with our clients by providing regular performance reports and conducting satisfaction surveys. We incentivize client referrals with exclusive access to upcoming beta campaigns.”

Advertising is rapidly evolving, driven by technological advancements and digital transformation. Embrace technology to enhance your advertising campaigns and improve data analytics. Adopt advanced tools and platforms for audience targeting, retargeting, and campaign optimization. Stay abreast of emerging technologies and trends to stay competitive and offer innovative solutions to clients.

• Invest in analytics tools to gather data on campaign performance and audience behavior, enabling data-driven decision-making.
• Keep your team updated on the latest advertising technologies through training and workshops.

Example: “Our agency harnesses AI-driven analytics tools to precisely target audiences and optimize campaigns in real-time. Our technology investments allow us to deliver more personalized ad experiences, resulting in higher engagement rates.”

The advertising industry comes with its fair share of risks, from data breaches to campaign performance challenges. Identify potential risks and develop mitigation strategies to minimize their impact on your agency’s operations. Ensure your agency complies with advertising laws, data privacy regulations, and industry standards. Educate your team on ethical advertising practices and transparency in client communications.

• Establish a crisis management plan to address potential reputation-damaging scenarios swiftly and effectively.
• Regularly review and update your agency’s legal compliance policies to stay aligned with changing regulations.

Example: “Our agency employs data encryption protocols and adheres to GDPR guidelines to protect client data and ensure utmost privacy. We have a crisis management team in place to handle any unforeseen challenges.”

To sustain long-term success, consider opportunities for geographic expansion or niche market penetration. Evaluate the feasibility of offering additional services, such as branding, public relations, or content marketing. Explore strategic partnerships or collaborations with complementary agencies to broaden your service offerings and reach new client segments. Assess potential mergers or acquisitions to accelerate growth and expand your agency’s market presence.

• Consider forming partnerships with local businesses or startups to enter new markets and gain regional expertise.
• Leverage industry events and conferences to network and explore potential growth opportunities.

Example: “We plan to expand our agency’s reach by partnering with a boutique PR firm to offer integrated branding and communication solutions for our clients, providing a one-stop-shop experience.”

While it may seem premature, having a well-thought-out exit strategy demonstrates your agency’s long-term planning and vision. Outline your objectives for a potential exit, whether it involves selling the agency, merging with another firm, or transitioning ownership to key team members. Develop a succession plan to ensure a smooth transfer of leadership and continuity for your clients.

• Consult with financial advisors or industry experts to determine the most suitable exit strategy for your agency’s long-term goals.
• Ensure all legal agreements and contracts allow for a seamless transfer of ownership or dissolution.

Example: “Our agency’s exit strategy involves grooming internal talent for future leadership positions and maintaining a strong client-centric focus to ensure client retention in the event of an ownership transition.”

The advertising industry is dynamic and competitive, demanding a well-crafted business plan to navigate its complexities successfully. By following this comprehensive guide and creating a detailed advertising agency business plan, you’ll position your agency for growth, profitability, and long-term success. At Stellar Business Plans, we understand the intricacies of developing effective business strategies. Our team of expert consultants is here to guide you through every step, from market analysis to financial projections, to make your advertising agency thrive. Let’s embark on this exciting journey together, making your mark in the advertising world and achieving extraordinary results for your clients.

Start Your Journey With Us

To know us more.

Updated On : September 1, 2023

Total shares:, average rating :, related posts.

How to Write a Business Plan for a Loan

How to create an airline business plan, how to create an effective amazon fba business plan, how to create an agricultural business plan, how to create an accounting business plan, how to create 3d printing business plan, how to create mcdonalds restaurant business plan, how to create a bbq restaurant business plan, how to create airbnb business plan, how to create a gym business plan: complete guide.

How to Write a Strong Executive Summary?

13 Reasons why you need a Solid Business Plan

How useful was this post?

Click on a star to rate it!

Average rating 4.3 / 5. Vote count: 16

No votes so far! Be the first to rate this post.

WhatsApp us

Advertising Agency Business Plan Template

Written by Dave Lavinsky

Advertising Agency Business Plan

You’ve come to the right place to create your Advertising Agency business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Advertising Agencies.

Below is a template to help you create each section of your Advertising Agency business plan.

Executive Summary

Business overview.

The Premium Advertising Agency is a startup advertising agency located in Cincinnati, Ohio. The company is founded by Patricia and Danielle Swanson, sisters who have amassed millions of dollars for their clients over the past ten years while working at a national chain advertising agency. Now that they’ve garnered a positive reputation of securing a high rate of visibility and profitability for their clients, they have decided to form their own company and they’ve invited former clients to join them. They plan on recruiting a highly-effective team of associates to help manage their agency at the highest peak of performance and stellar results for their clients.

The Premium Advertising Agency will provide a comprehensive array of advertising services to a wide variety of companies and entities that need assistance in launching or growing their businesses. The Premium Advertising Agency will be a one-stop shop for everything needed to propel any business to the next level of profitability and exposure to new client bases within their local region. Premium Advertising Agency will be the ultimate choice in Cincinnati for advertising campaigns and services, while also being a moderately-priced agency in the city.

Product Offering

The following are the services that Premium Advertising Agency will provide:

• Full-service digital media marketing
• Targeted traffic campaigns
• Market research
• Strategic traditional advertising campaigns
• Innovative and results-driven solutions
• Social media analytics
• Content creation (website, social media)
• Influencer marketing
• Paid advertising campaigns
• Day to day account management

Customer Focus

Premium Advertising Agency will target small-to-large-sized businesses within the greater Cincinnati region. There is no company that is too small or too large that cannot benefit from a comprehensive and effective advertising promotion or ongoing advertising program. Premium Advertising Agency will target executive board members at networking events. Premium advertising Agency will target diverse, women-owned and veteran-owned businesses.

Premium Advertising Agency will target marketing managers via local and national associations.

Management Team

Premium Advertising Agency will be co-owned and operated by Patricia and Danielle Swanson. They have recruited Jay Jameson to be the Accounts Manager and Lawrence Slater to be the Staff Accountant. In addition, they have recruited Janelle Meredith to be the Human Resources Manager.

Patricia Swanson is a graduate of the University of Ohio, where she earned a bachelor’s degree in Digital Marketing. Danielle Swanson is also a graduate of the University of Ohio, where her earned degree was in Business Management. Patricia and Danielle amassed millions of dollars for their clients over the past ten years while working at a national chain advertising agency. Now that they’ve garnered a positive reputation of securing a high rate of visibility and profitability for their clients, they have decided to form their own company and they’ve invited former clients to join them.

Success Factors

Premium Advertising Agency will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at the Premium Advertising Agency
• Comprehensive menu of services, including social media and digital campaigns
• Traditional advertising campaigns with highly-productive and profitable results
• Innovative techniques that solve the difficult advertising issues of today’s consumer groups
• Select marketing and advertising campaigns for startup companies.
• Premium Advertising Agency offers the best pricing packages for full-service, ongoing account maintenance or one-time marketing campaigns. Their pricing structure is the most cost effective when compared to their competition.

Financial Highlights

Premium Advertising Agency is seeking $200,000 in debt financing to launch its Premium Advertising Agency. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Premium Advertising Agency.

Company Overview

Who is premium advertising agency.

Premium Advertising Agency is a newly established, full-service advertising agency in Cincinnati, Ohio. Premium Advertising Agency will be the most reliable, effective, and results-driven choice for all businesses in Cincinnati and the surrounding communities. Premium Advertising Agency will provide a comprehensive menu of advertising and marketing services for any business, large or small, to utilize. Their full-service approach includes a comprehensive array of customized campaigns.

  Premium Advertising Agency will be able to actively manage every client account, with dedication to the unique needs of each client. The team of professionals are highly qualified and experienced in marketing and advertising across all traditional methods and digital platforms, as well. Premium Advertising Agency removes all the typical headaches and issues of advertising and marketing and ensures effective solutions are provided, while delivering the best customer service at the same time.

Premium Advertising Agency History

Since incorporation, Premium Advertising Agency has achieved the following milestones:

• Registered Premium Advertising Agency, LLC to transact business in the state of California.
• Has a contract in place for a 20,000 square foot office in a midtown building.
• Reached out to numerous contacts and former clients to spread the word and follow Premium Advertising Agency to their new location.
• Began recruiting a staff of fifteen account managers and six office personnel to work at Premium Advertising Agency.

Premium Advertising Agency Services

The following will be the services Premium Advertising Agency will provide:

Industry Analysis

The advertising agency industry is expected to grow over the next five years to over $500 billion. The growth will be driven by an increased dependency on social media marketing and various forms of digital campaigns. These will replace some traditional forms of advertising and marketing. The growth will also be driven by an increased number of customers who view the internet for a variety of purposes, where advertisements can be strategically placed to influence buying decisions. The growth will also be driven by the application of technological solutions and invitations to consumers not yet known. The growth will be driven by fewer brick-and-mortar stores and an increase in online purchases and marketing campaigns thus directed. Costs will likely be reduced as digital platforms and consumer invitations will become more plentiful and thus, less expensive to produce.

Customer Analysis

Demographic profile of target market.

Premium Advertising Agency will target the businesses in Cincinnati, Ohio. They will target marketing directors and executive personnel of companies. They will target startup companies that are diverse, woman-owned or veteran-owned. They will target associations and trade show events where personal meetings with executives can take place.

Customer Segmentation

Premium Advertising Agency will primarily target the following customer profiles:

• Businesses in the Cincinnati, Ohio region.
• Marketing directors
• C-suite executives and decision-makers
• Startup company executives of diverse, woman-owned, or veteran-owned businesses
• Marketing association executives and thought leaders

Competitive Analysis

Direct and indirect competitors.

Premium Advertising Agency will face competition from other companies with similar business profiles. A description of each competitor company is below.

Boone & Stratton Advertising

Boone & Stratton Advertising provides comprehensive marketing and advertising services within Cincinnati, Ohio and the surrounding communities. The company is over 100 years old and is entrenched with family members of both original partners, Madison Boone and Jeremy Stratton. The company has 100 advertising managers, who primarily focus on traditional advertising methods in print, telephone, and added-value inserts in publications. The company leases a multi-story building in the downtown area of Cincinnati and is known for the “team spirit” of the advertising account managers and rigorous standards of professionalism required of each by the executive board members.

Although Boone & Stratton Advertising is well-entrenched in the Cincinnati business landscape, the company does not engage in digital marketing or social media outreach campaigns. This leaves the opening for newer, innovative companies to enter their space and engage with their customers, particularly if companies are targeting younger demographic audiences.

SportsSupport Ad Agency

The SportsSupport Ad Agency is a company that focuses on the sports industry throughout the U.S. The Cincinnati location is one of 25 within this national chain advertising agency and the focus for this location is on regional sports clients. The advertising agency has highly-segmented sports apparel clients directed toward outdoor winter activities, as well as spring, summer and fall activities that include boats, fishing and accessory clients for those targeted audience segments. SportsSupport Ad Agency uses social media marketing via popular channels and uses certain channels to conduct surveys or to test product ideas. Most of the campaigns are directed toward the executives within the industries related to sports and their ad budgets for the yearly track of traditional advertisements.

XYZ Digital Promotions

XYZ Digital Promotions is a social media marketing agency located in Cincinnati, Ohio. The company targets the brand managers who oversee products that appeal to younger demographic customers. XYZ Digital Promotions claims to effectively enter and invite that target market better than any other advertising agency. XYZ Digital Promotions targets and partners with executives of beer, music festivals, streetwear, and hip hop music labels to bring the message to consumers via structured and direct digital campaigns.

XYZ Digital Promotions was founded in 2020 during the global pandemic. The brand messages offered to consumers were on-point and spoke to their “human condition,” as well as pointing to a variety of products to solve or provide solace for those hard conditions. Campaigns include new music cuts and contain an array of references to popular stars of the year, with memes and graphic art elements to most campaigns. XYZ Digital Promotions is a highly-segmented, successful advertising and marketing company directed to the consumer aged 17-25.

Competitive Advantage

Premium Advertising Agency will be able to offer the following advantages over their competition:

• Innovative techniques that solve the advertising issues of today’s consumer groups

Marketing Plan

Brand & value proposition.

Premium Advertising Agency will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive array of social media campaigns and traditional advertising techniques to ensure successful growth for their clients.

Promotions Strategy

The promotions strategy for Premium Advertising Agency is as follows:

Word of Mouth/Referrals

Premium Advertising Agency has built up an extensive list of contacts and clients over the years by providing exceptional service and expertise to their account clients. Premium Advertising Agency invites former and current clients to follow them to the new company and help spread the word of the Premium Advertising Agency.

Professional Associations and Networking

Premium Advertising Agency will embark on a thorough campaign to network extensively through regional association and business groups. They will also target marketing directors and executive personnel within those same business groups. They will target startup companies that are diverse, woman-owned or veteran-owned.

Website/SEO Marketing

Premium Advertising Agency will fully utilize their website. The website will be well organized, informative, and list all the services that Premium Advertising Agency provides. The website will also list their contact information. Agency brand managers, and list their top-tier brand alliances. The Premium Advertising Agency’s website presence will engage SEO marketing tactics so that anytime someone types in the Google or Bing search engine “advertising agency” or “marketing company near me”, Premium Advertising Agency will be listed at the top of the search results.

The pricing of Premium Advertising Agency will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Premium Advertising Agency. Operation Functions:

• Patricia Swanson will be the President and co-owner of the company. Danielle Swanson will be the Vice President and co-owner of the company. They will oversee all staff and manage client relations. Danielle and Patricia have spent the past year recruiting the following staff:
• Jay Jameson, a former associate at their prior employer, will take on the role of the Accounts Manager, directing and assisting Account Representatives.
• Janelle Meredith, a former associate, will be the Administrative Manager, and will manage the office administration, client files, and provide human resources training.
• Lawrence Slater will be the Staff Accountant, providing all client accounting, tax payments, and monthly financial reporting.

Milestones:

Premium Advertising Agency will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for Premium Advertising Agency
• 6/1/202X – Finalize contracts for Premium Advertising Agency clients
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Premium Advertising Agency office
• 7/1/202X – Premium Advertising Agency opens its office for business

Jay Jameson, a former associate at their prior employer, will take on the role of the Accounts Manager, directing and assisting Account Representatives. Janelle Meredith, a former associate, will be the Administrative Manager, and will manage the office administration, client files, and provide human resources training. Lawrence Slater will be the Staff Accountant, providing all client accounting, tax payments, and monthly financial reporting.

Financial Plan

Key revenue & costs.

The revenue drivers for Premium Advertising Agency are the fees they will charge to their clients for their advertising and marketing services.

The cost drivers will be the overhead costs required in order to staff Premium Advertising Agency. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Premium Advertising Agency is seeking $200,000 in debt financing to launch its advertising agency. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Clients Per Month: 35
• Average Revenue per Month: $175,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, advertising agency business plan faqs, what is an advertising agency business plan.

An advertising agency business plan is a plan to start and/or grow your advertising agency business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Advertising Agency business plan using our Advertising Agency Business Plan Template here .

What are the Main Types of Advertising Agency Businesses? 

There are a number of different kinds of advertising agency businesses , some examples include: Full-Service Advertising Agency, Digital Advertising Agency, and Traditional Advertising Agency.

How Do You Get Funding for Your Advertising Agency Business Plan?

Advertising Agency businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Advertising Agency Business?

Starting an advertising agency business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Advertising Agency Business Plan - The first step in starting a business is to create a detailed advertising agency business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your advertising agency business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your advertising agency business is in compliance with local laws.

3. Register Your Advertising Agency Business - Once you have chosen a legal structure, the next step is to register your advertising agency business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your advertising agency business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Advertising Agency Equipment & Supplies - In order to start your advertising agency business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your advertising agency business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful advertising agency business:

• How to Start an Advertising Agency

We earn commissions if you shop through the links below.  Read more

Advertising Agency

Back to All Business Ideas

How to Start an Advertising Agency

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 25, 2022 Updated on March 13, 2024

Investment range

$2,550 - $5,800

Revenue potential

$60,000 - $250,000 p.a.

Time to build

0 – 3 months

Profit potential

$54,000 - $100,000 p.a.

Industry trend

Advertising is a part of our daily lives — on TV, social media, and just driving down the road. The global ad industry is massive, projected to expand 30% by 2025 to reach $455 billion. If you have experience in marketing or advertising, now is a great time to start your own agency and grab a piece of that pie. You could even run your agency from home.

But before you start pounding out good copy, you’ll need to learn how to launch a business. Fortunately, this step-by-step guide has all the information you need to put you on the road to advertising success.

Step by Step Business values real-life experience above all. Through our Entrepreneur Spotlight Series , we interview business leaders from diverse industries, providing readers with firsthand insights.

If you’re starting an advertising agency, dive into this interview with Jeremy Heilpern to gain invaluable insights into navigating the industry with success.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an advertising agency has pros and cons to consider before deciding if it’s right for you.

• Provide Value – Help businesses grow, driving economic growth
• Low Startup Costs – Little investment required
• Flexibility – Run the business from home, set your own hours
• Get Creative – Put your creative skills to work
• Crowded Market – Advertising is a highly competitive industry
• High Stress – Coming with strong ad campaigns isn’t easy

Advertising industry trends

Industry size and growth.

• Industry size and past growth – The global advertising agency industry was worth $348.4 billion in 2021 after expanding nearly 10% the previous year.(( https://www.researchandmarkets.com/reports/5323063/advertising-agencies-global-market-report-2021 ))
• Growth forecast – The global advertising industry is projected to grow 30% by 2025. 
• Number of businesses – In 2021, 85,888 advertising agencies were operating in the US.(( https://www.researchandmarkets.com/reports/5323063/advertising-agencies-global-market-report-2021 )) 
• Number of people employed – In 2021, the US advertising agency industry employed 250,373 people.(( https://www.ibisworld.com/united-states/market-research-reports/advertising-agencies-industry/ )) 

Trends and challenges

Trends in advertising include:

• Digital advertising is where most companies spend their money, with over 64% of advertising budgets allocated to online channels.
• Video ads represent a large part of digital spending, with the trend moving to shorter and shorter videos.

Challenges in the advertising agency industry include:

• Tightening privacy regulations limit advertisers’ access to information about target audiences, making it more challenging for ad agencies to create targeted campaigns.
• As the digital world grows, it becomes more and more difficult for digital ad campaigns to make an impact.

Demand hotspots

• Most popular states – The most popular states for advertising managers are Washington, Maine, and California . (( https://www.zippia.com/marketing-advertising-manager-jobs/best-states/#missouri ))
• Least popular states – The least popular states for advertising managers are Oklahoma, Missouri, and Mississippi.

What kind of people work in advertising agencies?

• Gender –   54.7% of advertising managers are female, while 45.3% are male.(( https://www.zippia.com/marketing-advertising-manager-jobs/demographics/ ))
• Average level of education – The average advertising manager has a bachelor’s degree.
• Average age -The average advertising manager in the US is 39.4 years old.

How much does it cost to start an advertising agency business?

Startup costs for an advertising agency range from $2,500 to $5,800. Costs include a computer, a website, and design software for presentations. If you do not have an advertising background, you can get an online advertising degree from any number of colleges and universities.

How much can you earn from an advertising agency business?

Advertising agencies charge between $150 to $250 per hour of work on a campaign. Usually, the agency will estimate the hours required for a project and give a flat price. When you’re working by yourself, your profit margin will be high, around 90%. 

In your first year or two, you could work from home and do twelve $5,000 campaigns a year, bringing in $60,000 in annual revenue. This would mean $54,000 in profit, assuming that 90% margin. As your business grows, sales could climb to 50 campaigns a year. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to around 40%. With annual revenue of $250,000, you’d make a handsome profit of $100,000.

What barriers to entry are there?

There are a few barriers to entry for an advertising agency. Your biggest challenges will be:

• The required advertising background or education
• Breaking into a highly competitive advertising market.

Related Business Ideas

How to Start an Insurance Agency

How to Start a Project Management Company

How to Start a Staffing Agency

Step 2: hone your idea.

Now that you know what’s involved in starting an advertising agency, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

What? Determine your services

Your services will be to design, present, and implement advertising campaigns for companies. Here are the most common services:

• Market Research: This involves gathering and analyzing data to understand the target audience, market trends, and consumer preferences, which is crucial for crafting effective campaigns.
• Brand Strategy: Developing a comprehensive plan that defines brand identity , positioning, messaging, and voice, helping businesses establish a strong and consistent brand presence.
• Creative Development: This service encompasses the creation of visual and textual content for advertising campaigns, including graphics, videos, and written content that aligns with the brand’s message.
• Media Planning and Buying: Determining the most effective media channels to distribute the advertising content (such as television, radio, online platforms) and negotiating and purchasing advertisement space or time.
• Digital Marketing : Involves online marketing efforts, including SEO (Search Engine Optimization), PPC (Pay-Per-Click advertising), email marketing, and content marketing to boost online presence and engagement.
• Social Media Management : Managing a brand’s presence on social media platforms, including content creation, community engagement, and monitoring social media trends and analytics.
• Public Relations : Enhancing and maintaining the public image of a client through media releases, public statements, and event organization, as well as managing crisis communication.
• Event Marketing and Sponsorships: Organizing and promoting events to engage with the target audience or securing sponsorship opportunities to increase brand visibility.
• Analytics and Reporting: Tracking and analyzing the performance of advertising campaigns using various metrics, providing clients with insights on ROI and helping them make data-driven decisions.
• Interactive and Emerging Technologies: Utilizing new technologies like AR (Augmented Reality), VR (Virtual Reality), and AI (Artificial Intelligence) for more engaging and innovative advertising experiences.

Research advertising agencies in your area and online to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the market is missing a creative agency that provides digital marketing services or that monitors Google analytics and focuses on search engine optimization (SEO) . 

How much should you charge for advertising services?

Ad agencies charge $150 to $250 per hour of work on a campaign. Usually, the agency will estimate the hours required for a project and give a flat price. When you’re working by yourself, you should aim for a profit margin of about 90%

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be businesses and organizations. You can connect with business owners on LinkedIn or find them on Google and Yelp and call them directly. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm an Advertising Agency Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “ad agency” or “digital advertising”, boosts SEO
• Name should allow for expansion, for ex: “Momentum Marketing Agency” over “Brand Builders Agency”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create an Advertising Agency Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Highlight the vision and objectives of your advertising agency, focusing on delivering creative and strategic advertising solutions for various media platforms.
• Business Overview: Describe your agency’s services in creating and managing advertising campaigns, including concept development, media buying, and digital marketing.
• Product and Services: Detail the range of advertising services offered, such as print, digital, social media advertising, brand strategy, and market research.
• Market Analysis: Evaluate the demand for advertising services, identifying potential clients like small businesses, corporations, or non-profits.
• Competitive Analysis: Compare your agency to others, focusing on your unique offerings, such as niche market expertise, creative approach, or digital innovation.
• Sales and Marketing: Outline your strategy for attracting clients, using methods like networking, showcasing a portfolio, or digital marketing.
• Management Team: Highlight the experience and skills of your team, particularly in advertising, creative design, and business development.
• Operations Plan: Describe the process of campaign development, from client consultation to execution and performance analysis.
• Financial Plan: Provide an overview of financial aspects, including startup costs, pricing strategy, and projected revenue.
• Appendix: Include supplementary documents like case studies, client testimonials, or detailed market research to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to advertising agencies. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your advertising agencies will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding an advertising agency business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Licenses/Permits

Starting an advertising agency business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your advertising agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as  MavenLink , HighLevel , or Function Point , to manage your sales pipeline, campaigns, scheduling, and invoicing. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Specialize and Showcase Expertise: Focus on a niche or specific industry, positioning your agency as experts in that area. Develop case studies and portfolio pieces to showcase your successful campaigns within that niche, demonstrating your deep understanding and capability.
• Content Marketing and Thought Leadership: Create valuable content that educates and engages your target audience. Start a blog, produce insightful whitepapers, or host webinars to establish your agency as a thought leader in the advertising field, building trust and credibility.
• Collaborate with Influencers: Partner with influencers in the marketing and business space to increase your agency’s visibility. This collaboration can extend your reach to a broader audience and lend credibility to your services.
• Run Targeted Social Media Campaigns: Leverage social media platforms to run targeted advertising campaigns. Utilize platforms like LinkedIn for B2B marketing and Instagram or Facebook for a B2C focus. Tailor your content to resonate with your audience on each platform.
• Client Testimonials and Referral Programs: Encourage satisfied clients to provide testimonials and reviews. Word-of-mouth is powerful in the advertising industry, and positive feedback can significantly influence potential clients. Implement a referral program to incentivize existing clients to refer new business.
• Attend Industry Events and Conferences: Participate in relevant industry events and conferences to network with potential clients and partners. Sponsorship or speaking engagements can further establish your agency’s presence and credibility within the advertising community.
• Implement Guerrilla Marketing Tactics: Get creative with unconventional, attention-grabbing marketing tactics that generate buzz. Guerrilla marketing can help your agency stand out and create memorable impressions, fostering brand recall.
• Offer Free Workshops or Training Sessions: Host workshops or training sessions on relevant advertising topics. This not only positions your agency as an authority but also provides a platform to interact with potential clients and showcase your expertise.
• Strategic Alliances with Complementary Businesses: Form partnerships with businesses that offer complementary services, such as graphic design, public relations, or digital marketing. These alliances can lead to collaborative projects and mutual referrals.
• Optimize Your Google My Business Profile: Ensure your Google My Business profile is complete and optimized. Positive reviews, accurate information, and engaging photos can enhance your local search visibility and attract clients in your area.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your advertising agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your advertising agency business could be: 

• Creative ad campaigns to grow your business
• Build brand awareness with better advertising
• Take your business to the next level with stronger ads & marketing

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an advertising agency business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in advertising agencies for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in advertising agencies. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an advertising agency business include:

• Advertising Specialists – assist with advertising campaigns
• Receptionist – greet customers, make appointments
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run an Advertising Agency – Start Making Money!

Advertising helps make the business world go round, boosting brand awareness and educating consumers. The ad agency industry is huge and growing, so if you have relevant experience, a desire to help businesses grow, and creative skills, you could grab a share of the market and build a thriving advertising operation. 

This article has taught you how to launch a business, so now it’s time to start thinking up great ad campaigns and make your entrepreneurial dreams come true!

• Advertising Agency Business FAQs

Advertising agencies can be very profitable, with rates between $150 and $250. You’ll just need to come up with creative advertising campaigns to stand out in a competitive market.

Advertising agencies charge between $150 and $250 per hour of work on a campaign. Usually, the agency will estimate the hours required for a project and give a flat price.

Starting an advertising agency can be challenging, as it requires a wide range of skills, knowledge, and experience. Some of the key challenges include identifying a target market, developing a unique value proposition, building a team of talented professionals, establishing a strong brand identity, and attracting clients in a highly competitive industry.

To start a marketing agency, you will need a combination of creative, technical, and business skills. These may include expertise in areas such as branding, graphic design, copywriting, digital marketing, social media, analytics, project management, and business development.

To start an advertising agency with no experience, you may need to start small and focus on building your skills and expertise over time. You can gain experience by working for an established agency, freelancing, or taking on small projects for friends and family. You can also invest in training, education, and networking opportunities to build your knowledge and connections in the industry. 

As an advertising agency, you can offer a wide range of services to clients, including branding, creative design, copywriting, media planning and buying, digital marketing, social media management, analytics, and market research. You can also offer strategic consulting and project management services to help clients develop and execute effective marketing campaigns.

When developing and presenting advertising proposals to clients, it is important to follow best practices to ensure that your proposals are effective and persuasive. Some key tips include:

• Conduct thorough research and analysis to understand the client’s needs, target audience, and competition
• Develop a clear and compelling value proposition that highlights the benefits of your proposed strategy or campaign
• Use data and metrics to support your recommendations and demonstrate the potential ROI
• Present your proposal in a clear, concise, and visually appealing format that is easy to understand
• Be prepared to answer questions and address objections from the client

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm an Advertising Agency Name
• Create an Advertising Agency Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run an Advertising Agency - Start Making Money!

Subscribe to Our Newsletter

Featured resources.

57 Best Service Business Ideas

David Lepeska

Published on December 1, 2022

The services sector is undoubtedly the biggest economic sector in the US as it accounts for nearly 70% of the country’s gross domestic product. It ...

21 Agency Business Ideas

Published on August 11, 2022

Dreaming of running your own agency? There are a lot of possibilities out there, from travel to advertising and marketing, to recruiting, SEOconsult ...

38 Creative Small Business Ideas

Carolyn Young

Published on June 30, 2022

Want to express your creativity and be your own boss? There are many creative business ideas out there that can help you check both boxes, and makeg ...

No thanks, I don't want to stay up to date on industry trends and news.

Free Download

Advertising Agency Business Plan Template

Download this free advertising agency business plan template, with pre-filled examples, to create your own plan..

Or plan with professional support in LivePlan. Save 50% today

Available formats:

What you get with this template

A complete business plan.

Text and financials are already filled out and ready for you to update.

• SBA-lender approved format

Your plan is formatted the way lenders and investors expect.

Edit to your needs

Download as a Word document and edit your business plan right away.

• Detailed instructions

Features clear and simple instructions from expert business plan writers.

All 100% free. We're here to help you succeed in business, no strings attached.

Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More business planning resources

How to Start a Business With No Money

How to Write a Business Plan for Investors

10 Qualities of a Good Business Plan

Simple Business Plan Outline

How to Create a Business Plan Presentation

Industry Business Planning Guides

Business Plan Template

How to Write a Business Plan

Download your template now

Need to validate your idea, secure funding, or grow your business this template is for you..

• Fill-in-the-blank simplicity
• Expert tips & tricks

We care about your privacy. See our privacy policy .

Not ready to download right now? We'll email you the link so you can download it whenever you're ready.

Download as Docx

Download as PDF

Finish your business plan with confidence

Step-by-step guidance and world-class support from the #1 business planning software

From template to plan in 30 minutes

• Step-by-step guidance
• Crystal clear financials
• Expert advice at your fingertips
• Funding & lender ready formats
• PLUS all the tools to manage & grow

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

How to write a business plan for an advertising agency?

Putting together a business plan for an advertising agency can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing advertising agency, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for an advertising agency?

• What information is needed to create a business plan for an advertising agency?
• How do I build a financial forecast for an advertising agency?

The written part of an advertising agency business plan

• What tool should I use to write my advertising agency business plan?

Having a clear understanding of why you want to write a business plan for your advertising agency will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create an advertising agency business plan.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your advertising agency is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your advertising agency, you'll have to:

• Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
• Determine the pace at which the business needs to progress to meet its objectives as scheduled,
• Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small advertising agency runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your advertising agency's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your advertising agency business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your advertising agency's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your advertising agency.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your advertising agency and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your advertising agency's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your advertising agency, let's explore what information is required to create a compelling plan.

Information needed to create a business plan for an advertising agency

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your advertising agency business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for an advertising agency

Before you begin writing your business plan for an advertising agency, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your advertising agency.

Your market research may reveal that potential clients may be more likely to respond to advertisements featuring modern and relevant design elements, as well as creative, innovative messaging. Additionally, your market research could uncover that potential clients may be more likely to respond to advertisements that focus on personal connections and emotionally engaging content.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your advertising agency.

Developing the sales and marketing plan for an advertising agency

Budgeting sales and marketing expenses is essential before creating an advertising agency business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and capital expenditure requirements of an advertising agency

Whether you are starting or expanding an advertising agency, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

Your advertising agency might incur staffing costs such as hiring creative staff to design advertising campaigns, marketing staff to develop strategies, public relations staff to manage press relations, and administrative staff to manage the day-to-day operations of the agency. In addition, you might incur equipment costs such as computers, software, cameras, video equipment, and other tools used to create and execute your campaigns.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your advertising agency, it is time to start creating your financial forecast.

What goes into your advertising agency's financial forecast?

The financial forecast of your advertising agency's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a advertising agency are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your advertising agency forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established advertising agency will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your advertising agency

The projected balance sheet of your advertising agency will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your advertising agency projected balance sheet provides an understanding of your advertising agency's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your advertising agency's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The projected cash flow statement

A cash flow forecast for an advertising agency shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your advertising agency business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting an advertising agency.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the advertising agency, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of an advertising agency business plan is understood, let's focus on what goes into the written part of the plan.

The written part of an advertising agency business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your advertising agency's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your advertising agency, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

The second section in your advertising agency's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your advertising agency, you could emphasize its proximity to a major metropolitan area, giving it access to a large consumer base.

You may also point out that the area has a diverse population, offering potential clients access to a wide range of potential customers.

Furthermore, you could highlight the area's growing technology sector, and the potential opportunities that come with that. Finally, you might emphasize the affordability of the area, making it a cost effective place to do business.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your advertising agency business plan should include a detailed description of what your company sells to its customers. 

For example, your advertising agency might offer services such as creative graphic design, copywriting, and advertising campaign management to its customers.

These services would help customers create strong and attractive visuals for their products and services, craft effective and persuasive ad messages, and coordinate and manage their advertising campaigns to achieve maximum returns.

The reader will want to understand what makes your advertising agency unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When outlining your market analysis in the advertising agency business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your advertising agency, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your advertising agency targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include startups looking to launch their new products or services, build brand awareness, and establish a strong market presence.

In the competition subsection, introduce your main competitors and explain what sets your advertising agency apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your advertising agency.

5. The strategy section

When crafting the strategy section of your business plan for your advertising agency, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your advertising agency may face the risk of a data breach. Data is a valuable asset for any company, and your business could suffer if it is compromised. It is important to ensure all customer information is protected and that security measures are constantly monitored and updated.

Your advertising agency may also face the risk of losing clients. In order to maintain a healthy business, you must be able to retain customers and attract new ones. Providing quality services and building relationships with clients can help your agency remain competitive and successful.

6. The operations section

The operations of your advertising agency must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your advertising agency - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as creative talent and branding expertise. These could be valuable IPs for an advertising agency, potentially helping them to differentiate their offering from competitors and create compelling content for clients.

Additionally, your agency could also have proprietary software or processes that might help you to efficiently manage campaigns and track results.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into an advertising agency business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my advertising agency's business plan?

There are two main ways of creating your advertising agency business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your advertising agency's business plan

Using online business planning software is the most efficient and modern way to create an advertising agency business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your advertising agency's business plan

Outsourcing your advertising agency business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your advertising agency business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your advertising agency's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write an advertising agency business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my advertising agency business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating an advertising agency business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your advertising agency and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your advertising agency business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing an advertising agency? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Create a convincing business plan

Assess the profitability of your business idea and create a persuasive business plan to pitch to investors

500,000+ entrepreneurs have already tried our solution - why not join them?

Not ready to try our on-line tool ? Learn more about our solution here

Need some inspiration for your business plan?

Subscribe to The Business Plan Shop and gain access to our business plan template library.

Need a professional business plan? Discover our solution

Write your business plan with ease!

It's easy to create a professional business plan with The Business Plan Shop

Want to find out more before you try? Learn more about our solution here

How to Write a Digital Marketing Agency Business Plan (with PDF Template)

SEOptimer now serves over 2,000 digital agencies around the world and through the years we've had the chance to connect with many of our agency customers to understand their early days in starting their agency. This is incredibly interesting to us because it helps us understand where and how they plan to grow so we can help build the features they need in SEOptimer.

This article is the 3rd in our series focused on starting a new digital agency. For some useful prior reading be sure to check out our previous articles:

• How to Start a Digital Marketing Agency : a comprehensive guide covering typical agency business models, services, hiring, training, new business, day to day management and more!
• Digital Agency Lean Canvas : a digital agency business model on a single page! The lean canvas is a popular documentation methodology borrowed from the tech startup world.

Don't be dismayed if it feels like there's a lot of other competing digital agencies in your city. This is perfectly normal. Digital marketing services like local SEO, for example, are dominated by small agencies. Search Engine Land reported that over 50% of local SEO agencies have 10 or fewer clients. Forbes Council Member Jon Hall says, this keeps the industry "weird" - aka diverse as its not dominated by a small handful of big agencies.

The first step in launching a new digital marketing agency is to write a plan. In this guide, we'll cover two of the more traditional ways to define a business plan document with handy downloadable templates:

• Digital Marketing Agency Business Plan Document (DOCX & PDF) Template
• Creative Agency Business Plan Deck (PPTX) Template

Why do you need a Digital Marketing Agency Business Plan?

The days of mandatory 50+ page business plans are long gone. The choice is now yours as to whether you define your digital agency business plan in an in-depth strategic document or not. Some agency founders find it useful to brainstorm this way and document their thought process in a long-form fashion across many pages. Other founders prefer creating shorter slide decks, others opt for a 1-page lean canvas version or some even write their plan in a wiki or business planning tool.

There is no right or wrong way to document your plan. You need to find the documentation method that suits you best. If you're unsure what suits you best, the following factors may help you decide:

Consideration #1: Who is the audience?

Think about who this document is for. Who will read it? In some cases it will just be you and the founding team. If you are raising money, obviously your investors will be a key audience.

You might also have business partners or board members who may be an audience too. When thnking through all these different groups, work backwards from the most optimal presentation format.

Consideration #2: Seek an unbiased third-party opinion

Devin Schumacher is the Founder of SEO agency SERP and says it's easy to get swept up in your own overly optimistic projections.

"Ask an experienced agency founder you trust or admire to sanity-check your plan. Seeking an objective opinion from a third-party detached from your new business is vital."

Devin makes a great point. This type of peer review methodology is commonplace in other industries but sometimes lacking amongst agency founders. Make sure you get at least 1 other unbiased opinion from someone who has already achieved success in your niche.

Don't fall into the trap of asking a friend or your accountant or someone you know personally to review your plan. Doing so will give you a biased opinion. You need an unbiased opinion from someone willing to give you objective feedback.

Consideration #3: Stand your ground

The whole point of a business plan is to take the time and effort to research the market, your competitors and potential clients. This document will distill all your insights into a strategic plan you can operationalize. As is always the case, unexpected distractions masquerading as opportunities (rightly or wrongly) will pop up in your field of view demanding your attention.

Perhaps it's a new client opportunity with a project slightly adjacent to your niche. Perhpas a hiring opportunity for a role you didn't plan to hire yet. Sometimes the hardest thing is to say no, when you're in the mindset of taking every opportunity for growth.

During these situations, revisit your agency business plan and remind yourself of your focus area niche and how you planned to grow within that niche.

Consideration #4: But, be ok with change

In fact this balance between sticking to the plan and pivoting the plan needs to be navigated by every digital agency founder. It's not easy and often you will be second-guessing yourself.

"Every agency owner I know has had to massively adjust their target audience, pricing structure, competitor analysis, and service offerings based on the way they grow over the first 2-5 years."

Rebekah says that founders need to be prepared for change, afterall, digital marketing is in constant flux and evolution, so change is the norm and we need to write business plans with flexibility in mind.

Trust your performance metrics and continue to do the things that have the biggest quantifiable business impact.

Typical Business Plan structures

We mentioned previously that there's no right or wrong way to document your business plan. So with that said, let's look at some typical marketing agency business plan templates that you can use. After considering all the factors above, choose the structure that works for you and your stakeholders best. We've outlined six of the more common options below:

Option #1: Written business document

This is the more traditional (and still valid) way to describe your business. A written business plan document in MS Word or Google Docs is still the most common way to document your digital marketing agency business plan.

This type of business plan is considered "long-form", ie: longer in length and suited to more descriptive language. Expect to write longer rationales, longer explanations with plenty of space for evidence, research, insights and strategy. This type of plan will likely be 30+ pages and feel comprehensive. This comprehensiveness is especially needed if external investors or business partners are involved who need to be convinced of the robustness of your plan.

Option #2: Slide deck

The PowerPoint Presentation (or Google Slides or Keynote) has become the go-to corporate communication format. Digital agency founders spend most of their time communicating to staff, clients and stakeholders in PowerPoint so it makes sense to use this format for the purposes of communicating the agency's overall business plan.

The fundamental difference between this option and the written document, is that a slide deck is a presentable format. So typically you might be in the room with your business partners, walking through the presentation on the screen. Whereas in option #1, a written document is not a compelling way to present an idea. It's much more suited as a sent document to be consumed in isolation. That's not to say that a slide deck can't be utilized this way, it's just more common that you would be presenting and talking through your plan with the slides serving as a visual backup to what you say.

There's also a good argument for doing both (ie written document AND slide deck). It comes down to who all the stakeholders are (eg investors, business partners or just you) and whether you intend to present your plan or just document your plan.

Option #3: Lean canvas

The Lean Canvas developed by leanstack.com is a business plan on a page split into 10 boxes. This planning document has become very popular in the tech/startup world and has since been adopted in many other industries, including digital agencies. Be sure to check out our previous article explaining how to use a Lean Canvas for your agency .

The entire business plan fits on a single page which means you obviously need to sweat on every single world and ensure only the most important details are included. We are big supporters of this format because this helps you prioritize and focus your efforts down to the fundamental aspects of your new business.

Option #4: Wiki

In the context of a business, a Wiki is usually an internal website with multiple interlinking articles. The biggest Wiki in the world is Wikipedia and if you want to get really meta, check out Wikipedia's wiki about wikis :

"A wiki (/wɪki/ WIK-ee) is a hypertext publication collaboratively edited and managed by its own audience directly using a web browser. A typical wiki contains multiple pages for the subjects or scope of the project."

Wiki's are generally perceived as internal knowledge bases so if your business plan has executional detail, this might be a good format for documenting processes and methodologies for staff.

Option #5: General Planning tool

Tools like Notion and Trello have grown massively in recent years as more people are working remotely and more work in general is being done collaboratively online.

These types of planning tools are designed to be multi-purpose and fall somewhere between a wiki and a specialized business planning tool.

How to construct the business plan

Now that we've covered the typical business plan structures let's look at the specifics of how you actually go about constructing the business plan and each of the main tasks you need to perform and sections of the business plan.

Market research data gathering

Customer/client research.

Rebekah Edwards, who we spoke to previously stresses the importance of market research with as many potential clients as you can. She interviewed several businesses in their target market when developing their service offerings and pricing. Some of the questions she thought were most helpful included:

• With no other information, what do you think X would cost from an agency? (X being the service in question.)
• What is the biggest roadblock for you to accomplish X in-house? (X being basic content/SEO projects, such as article creation/editing/uploading or strategizing new keywords.)
• How would you typically search for a digital marketing agency? (Referrals, social media, Google search, etc. — this helped us understand how to best market our services)
• If you already work with a digital marketing agency of any kind, what stood out? Why did you sign on the dotted line?
• Have there been digital marketing agencies you've specifically decided not to work with for any particular reason? What were the red flags or the issues with a fit that led you to say no?
• What matters most to you when working with a digital marketing agency? (Examples: data/analytics, frequent communication, hitting deadlines every time, price, niche of expertise, etc.)

Answers to these questions are invaluable as they help you position and market your new digital agency based on customer insight.

Competitor research

The importance of competitor research goes without saying. It's vital you have a good understanding of how your competitors are going to market, how they sell, who they target and what their rough price points are. If you have a friend who owns a small business, ask them to mystery shop at a competitor so they can report back to you what the sales process was like.

The way you position and sell your services should be informed by a combination of both customer insights and competitor insights. Addressing client needs whilst maintaining a unique selling proposition will set your new digital agency up for success!

Building out the business plan

Download our template: digital marketing agency business plan document.

To make edits to the document make sure to download our DOCX template which you can edit directly in Microsoft Word. However if you would prefer a printable PDF, we also provide this option too. Use these templates as a starting point to help you draft your digital marketing business plan:

Below are some of the highlight areas of the plan:

Market Research Findings

We suggest conducting three types of research to inform your marketing agency business plan:

• Qualitative research like one-on-one interviews, focus groups and meetings with prospective clients
• Quantitative reserach like online surveys, mass emails and multivariate testing
• Competitor analysis to determine their strengths and weaknesses

Unique Selling Proposition (USP) and Service Offering

Nailing your USP will be tough especially if you are in a competitive industry / city. Use the previous market research tasks to discover where the gaps are in the market and leverage these insights to position your new agency to be competitive AND different. Perform a SWOT analysis based on your new USP. Then you can determine your actual service offerings and pricing strategy.

Go-To-Market (GTM) Plan and Org Structure

Define your target market - the exact client types who you want to sell to and list the marketing and advertising activities that you will perform that would be most effective in reaching these types of people.

Also list your people (this might not be many on day 1!), sources of advice and support as well as the strategies you'll use to retain your staff and build their skills and knowledge.

Goals Sales Forecasting

This marketing agency business plan template includes goal setting for the next year and goal setting for the next 3 years. This page is structured to help you set SMART goals.

SMART goals are:

• Specific : In the '[Enter a goal]' section describe your goal clearly and ensure you attach a person responsible in the 'Who's responsible' section.
• Measureable : Ensure the actions you list in the 'Actions to achieve goal' have an objective outcome
• Achievable : Ensure you sense-check your goals with your team and all agree that they are attainable
• Relevant : Ensure this is a priority goal and will help your new agency grow
• Time-bound : Enter a due date to ensure the goal doesn't get forgotten

Use the Cash flow forecast table as a simple way to visualize cash-on-hand in your first 12 months. Add rows to estimate your monthly expenses like payroll, rent, utilities, subscriptions, insurance, fees and other ongoing costs.

Tools and Tech

Finally, list out all the tools and technology your new agency will likely need to run an efficient operation. We've listed SEOptimer for you already because it's one of the best, low-cost lead generation tools for your agency. Over 2,000 digital agencies use SEOptimer to generate white label site audits and embed an audit form on their agency website to capture new lead details.

Creative Agency Business Plan Slide Deck PPTX Template

If you prefer a slide deck template, use this creative agency business plan example in PowerPoint format:

Tim's background is in digital marketing working for both large and small digital agencies and diverse client types. He has a passion for tech, software and staying up to date on the latest search engine news.

SEO Audit & Reporting Tool. Improve Your Website. Win More Customers. Get a Free Website Audit Instantly

Featured Articles

Recent articles, related articles.

SEOptimer - SEO Audit & Reporting Tool. Improve Your Website. Win More Customers. Get a Free Website Audit Instantly

" It's awesome how I have been able to build up onboarding and invoicing and client related reporting in one place using Clientvenue, it's really awesome that we've been able to cut on extra software spending for our business as well. "

Trusted by 200+ Marketing Agencies

Signup for a full-featured trial, we will help you onboard with ease.

This will be used as your dashboard url

By signing up, you agree to our Terms and Privacy Policy

How to Write An Advertising Agency Business Plan in 2021

If you're looking to start an advertising agency business, the first thing that you are going to need is a business plan. Before starting on your own, it may be prudent to read through some examples of service-related business plans.

This will give you an idea of what others have done and also show you different sections and language used in writing about themselves and their businesses.

Who is it for?

Inexperienced business owners almost invariably ignore the basic and eternal truth of writing an advertising agency business plan – the audience matters.

It may seem inconsequential, but it is actually a distinction that will affect all subsequent decisions. The company's vision, mission statement, and values should all come into play when writing the introduction of the document.

The rest of it will depend on which of the above audiences you intend to address it to. What are your goals, how will they be achieved, etcetera?

The reason for creating a business plan is to map out what your goals are and how you intend on achieving them. But having these plans isn't enough – they have to be communicated as well.

1. Internal Purpose

An internally-oriented business plan is also a great way to understand where you stand realistically, which is often a problem for digital marketing agencies. For instance, let's say that your company has three designers and one developer.

You may be getting an idea of the staffing that would be required for a given project, but it's hard to know the number until you've taken on more work.

If your company is growing and hiring new people as they come in, then of course you will need more staff than when things are slow. But what about projects?

You may have produced one or two large projects this year, but what if you're expecting more in the future? If not for your business plan, you may be left scrambling without a firm idea of how to proceed.

For example, you may be coming up with a business plan that will be used mostly for internal purposes. You will be laying out your goals and means to achieve those goals to your employees.

You will let them know what is expected of them and what kind of performance will be considered satisfactory. It also lets them know how the company is doing and try to convince them to stay on board.

2. Investors and Partners

In order for a business plan to be successful, it needs to have an audience. You can't just write the document without considering who you are writing it for and what their goals are.

The most common audiences of these plans will be investors and partners, potential customers or your own employees. It's important not only that they know about how they will be addressed, but that they are aware of the plan's goals.

This kind of a business plan is intended to reinforce their trust and belief in your Advertising agency. It goes without saying that this kind of a business plan will be finances-heavy, dealing in cold, hard numbers.

3. Potential Customers

Your business plan may be aimed at your existing and potential customers. It will be a borderline marketing tactic where you will point out all of the amazing things you are planning to accomplish and tools that you intend to use.

It can also be a great way to advertise the wide array of your services and introduce new ones. For example, if you just started expanding and are now offering advertising strategy services, your customer-oriented business plan is the perfect “delivery mechanism” for this announcement.

This will give you an idea of what others have done and also show you different sections and language used in writing about the services.

4. Know Your Market

A big part of knowing whether your agency will be successful is understanding your audience. Make sure your plan is clear about the definition of your target market – who will you be selling to and how many other agencies are already selling similar services?

Your ads won't work if they don't appeal to what your potential customers want or need. Research and find out as much as possible about the people you want to sell to.

Many business owners fall into the trap of believing that their products or services are “for everyone” that is, anyone would be interested in or need what your agency has on offer.

But this isn't true! You have to know who will benefit from your product or service and who will not. You may have a customer-oriented business plan or one that is intended to be used for investors, partners, potential customers, and so on.

The purpose of the document changes depending on your target audience – but there are some elements that should always stay in place no matter what type you're writing.

5. The Importance of Numbers

Whether you like figures or not, having a thorough understanding of the numbers that impact your business is a crucial component in agency business plan when creating one for 2021 - so it is important that you are excruciatingly precise with your numbers.

A business plan is never about the words, it's about the numbers If you're not good with numbers, it might be best to ask someone else to do the number crunching for you.

You may also find that some social media sites or other agencies already offer similar services and if this is the case, it's important to point out any differences in your plan.

Having a strong understanding of these figures will help an advertising agency succeed in 2021 and beyond!

• How many clients do you have at the moment?
• What are you doing to keep your clients?
• How much are you paying your outside partners?

Do not write numbers or bullet points. Write content instead! Content is more interesting and readable than bullets or numbers.

6. Focus on People

The people from the subheading above are your people, your employees. The reason why they are making a feature in an article about an advertising agency business plan for 2021 is that this will hopefully be the year when advertising agencies finally realize how valuable their workers really are and start taking care of them more properly.

Nowadays, it seems as though there is a constant flux of people who are constantly leaving their jobs for different agencies.

This can be attributed to many things; one being that the job market has been in such turmoil since 2008 which has led to an increase in unemployment and or underemployment rates all around.

A second reason is that many people are realizing they can't afford to stay loyal and committed to their jobs as time goes on.

In an industry such as Advertising agency, where things change so rapidly due in large part because of the internet, this is even more pronounced than some other industries would be if they were experiencing the same changes at a similar rate.

Just like with the first point, this is due in large part to how unstable and volatile the job market has been since 2008- people are simply not willing to stay at a company for too long.

Because they know that even if it pays well now, there's no guarantee what things will look like a year from now when it comes time to re-negotiate their contracts and if the company is still a good fit for them then.

A third reason why people are constantly switching from one job to another has more to do with how competitive it can be.

With so many agencies vying for the same work, sometimes it feels like there's nothing fair or even about who gets which job - and the best way to avoid feeling like this is by moving onto something that feels better.

Finally, there are those people who just feel as though they need a change of pace in their lives and work environments.

These are the types of people who often have been working for years at one company because it was what felt safe or comfortable, but when they finally have the chance to explore new work environments they tend to falter.

What do you need to include?

An Advertising Agency Business Plan Template for 2021 includes:

• Agency’s mission statement.
• A brief history of the business and how it came to be.
• Information about products or services offered by the agency, including a list of clients and their contact information.
• An outline of any challenges that are anticipated in meeting client needs, as well as solutions for overcoming those challenges.
• A description of the company’s organizational structure and staffing needs.
• Revenue projections for the first five years.
• An estimate of expenses over that same timeframe, including both monthly costs and startup capital expenditures.
• A list of any patents or trademarks that are held by the company.
• An estimate of income and expenses for the first year, with a projected profit-loss statement over the next five years.
• Information on debt owed to lenders, including an assessment of current interest rates and minimum payments due per month.

Register now

Client portal | productized services | workflow automations create delightful experiences. ‍, you might also like 💡, content marketing vs project management: understanding the differences, top 8 ai software consulting firms, why use notion.hq for client project management - top 6 reasons, how to write a creative brief sample in 11 quick steps, top 7 benefits of using a law firm client intake form, how to implement network marketing and project marketing in your projects, one-stop-solution to manage all your clients on scale.

Task & Team Management, Invoicing, Billing, Client Communications, Analytics & so much more ...

All in one solution for growing agencies

Do you have the world's best boss? Enter them to win two tickets to Sandals!

• Starting a Business

Our Top Picks

• Best Small Business Loans
• Best Business Internet Service
• Best Online Payroll Service
• Best Business Phone Systems

Our In-Depth Reviews

• OnPay Payroll Review
• ADP Payroll Review
• Ooma Office Review
• RingCentral Review

Explore More

• Business Solutions
• Entrepreneurship
• Franchising
• Best Accounting Software
• Best Merchant Services Providers
• Best Credit Card Processors
• Best Mobile Credit Card Processors
• Clover Review
• Merchant One Review
• QuickBooks Online Review
• Xero Accounting Review
• Financial Solutions

Human Resources

• Best Human Resources Outsourcing Services
• Best Time and Attendance Software
• Best PEO Services
• Best Business Employee Retirement Plans
• Bambee Review
• Rippling HR Software Review
• TriNet Review
• Gusto Payroll Review
• HR Solutions

Marketing and Sales

• Best Text Message Marketing Services
• Best CRM Software
• Best Email Marketing Services
• Best Website Builders
• Textedly Review
• Salesforce Review
• EZ Texting Review
• Textline Review
• Business Intelligence
• Marketing Solutions
• Marketing Strategy
• Public Relations
• Social Media
• Best GPS Fleet Management Software
• Best POS Systems
• Best Employee Monitoring Software
• Best Document Management Software
• Verizon Connect Fleet GPS Review
• Zoom Review
• Samsara Review
• Zoho CRM Review
• Technology Solutions

Business Basics

• 4 Simple Steps to Valuing Your Small Business
• How to Write a Business Growth Plan
• 12 Business Skills You Need to Master
• How to Start a One-Person Business
• FreshBooks vs. QuickBooks Comparison
• Salesforce CRM vs. Zoho CRM
• RingCentral vs. Zoom Comparison
• 10 Ways to Generate More Sales Leads

Starting an Advertising Agency

Table of Contents

Every business needs to advertise and spread the word to new customers to keep growing. Some small businesses and startups may need to keep their marketing and advertising needs in-house to start, but external marketing and advertising agencies can bring many benefits to the table, especially for companies looking to expand their reach. Many companies, including small businesses, rely on the expertise of advertising agencies to help them create and execute effective marketing strategies . 

In the digital marketing era, ad agencies conduct their business and provide services primarily online, making them both low-cost and COVID-19-friendly. While some agencies prefer to run their operations out of physical locations, traditional Mad Men operations are quickly becoming a thing of the past. This paves the way for more accessible and specialized advertising agencies to cater to a broader range of clients and businesses. 

If you’re an aspiring entrepreneur with a background in marketing and communications, here’s what you need to know about starting an advertising agency.

How to start an advertising agency

Once you’ve decided to start your own ad agency, follow these steps.

2. Create a business plan for your advertising agency.

Before you can get up and running, you’ll need to create a detailed business plan to guide your growth and internal strategy.

The three main purposes of a business plan are to establish your business focus, secure funding (if you’re planning to seek investor capital as your agency grows), and attract executive leaders to help you manage your company. Include the following elements in your plan.

• Executive summary: What does your advertising agency do?
• Company description: What defines your company?
• Product/service overview: What services do you offer your clients?
• Market analysis: What kinds of clients does your agency target?
• Financial plan: What are your expected expenses, and how will you make money to sustain operations?

2. Choose your pricing model.

Most advertising agencies make money by brainstorming and developing creative assets for their clients, including traditional advertising campaigns and content marketing pieces, like blogs and social media posts. You can use several pricing models to charge your clients. The best one for you depends on the type of work you do and how you work with your clients. You’ll need to decide if you’ll charge per hour, per project or according to a fixed retainer model, in which a client pays an agreed-upon amount in advance for a certain number of service hours. A flexible or hybrid approach with different payment structures can help you meet clients’ needs while allowing them to stay on budget. 

3. Stay on top of the advertising game.

If you subscribe to trade publications, blogs and podcasts geared toward ad agencies, you can keep up with industry events, trends, suppliers and technology. Here are some top advertising blogs to follow, as well as reputable ad industry sources:

• Kissmetrics

Help keep your website at the top of search engine results pages (SERPs) by sharing industry trends, emerging strategies and other tidbits with your target audience through your site’s blog. Not only does this help refresh the content on your site, but it also shows your audience your willingness to share information freely.

4. Join advertising industry trade associations.

Joining a trade association allows you to continue your education, keep up with trends and technology , meet with your peers at trade shows and conventions, and enter awards contests to add to your credentials.

While there are many niche organizations for specific types of advertisers, consider joining one of the following organizations for general advertising and marketing professionals:

• American Advertising Federation
• American Marketing Association
• Association of National Advertisers (ANA)
• Interactive Advertising Bureau (IAB)

5. Find clients for your advertising agency.

Every advertising agency needs clients. Before you start spreading the word about your marketing services, decide what types of businesses you want to work with (in terms of industries, business size, location, services needed and so on). Once you’ve defined your ideal client, research companies that fit your description and study their current advertising efforts.

By going after businesses with a small or lackluster marketing presence, you can offer yourself as a solution for busy entrepreneurs and business leaders who need help taking their advertising to the next level. Highlight the benefits of advertising and demonstrate how good marketing can help your prospects earn new business and grow their revenue.

Once you have a few regular clients, you can politely and professionally request a testimonial or referral to keep expanding your client base through word-of-mouth recommendations.

6. Build your contacts.

If you’re planning to help your clients with ad placements on television, radio shows, podcasts, blogs and news publications, you’ll need to start building a stable of media contacts. From these outlets, collect media kits that list advertising rates, demographics and specs so you know what kinds of campaigns might be appropriate for your clients to place there. Prepare to introduce yourself to sales representatives at the media outlets you plan to use regularly. Create a portfolio of past work, if you have been in the industry, to highlight ad campaigns you’ve worked on in the past and thus make your ad sales meetings go more smoothly.

If you don’t have a brick-and-mortar shop, your website may be one of the only places where your target audience interacts with your ad agency. Make sure you have a responsive website that is as inclusive as possible. Include image and alt-text tags, choose high-contrast colors for easier accessibility, and keep your site updated to ensure all pages and aspects load quickly and smoothly.

7. Create an incredible website to sell your services.

Like all modern businesses, your advertising agency needs a robust, informative website that engages potential clients and explains how you can help them with their marketing campaigns. You can go the DIY route and choose one of the many available website-building tools, or hire a professional web designer or digital marketing agency to create a more customized web presence. [Read related article: The Best Website Builders and Design Services of 2024 ]

Either way, you’ll want your small business website to have an appropriate domain name, pages that define who you are and what you offer, a contact form, a payment portal (if you plan to accept client payments through your website), and high-quality, original images to visually communicate your brand.

8. Develop your own marketing plan to advertise your business.

Advertising agencies have a unique advantage over other types of service businesses: Their own marketing and advertising efforts serve as a work sample and let potential clients see upfront what the agency might be able to do for them.

That’s why you need to pull out all the stops for your digital presence and show off your strengths to prospects. For instance, if you offer graphic design services for client ad campaigns, ensure all of the graphic elements of your website and social media are impeccable. If you offer copywriting services, maintain a well-written, SEO-friendly blog on your website so they can see your expertise and writing style.

In other words, let your marketing strategy speak for itself so your agency can keep growing and attracting new clients. [If your target audience is active on Pinterest, learn the do’s and don’ts of advertising on the platform .]

When developing your social media marketing strategy , don’t assume you need to create profiles on every available platform. Narrow down which platforms you should focus on by determining which platforms your target audience uses. It’s better to have a couple of fully developed, active social channels than profiles on every platform that are poorly managed and maintained.

Benefits of starting an advertising agency

There are nearly 14,000 established advertising agencies in the United States, and they generated about $57 billion in 2021, according to U.S. Census Bureau data as reported by Statista . It’s not hard to see why this startup path is so attractive: It’s relatively easy to launch and has the potential for a big payoff.

Here are some benefits of starting an ad agency:

• Low overhead and startup costs. Many agencies operate remotely, so they don’t need to invest in a brick-and-mortar office space. In most cases, your only startup costs will be technology equipment (hardware and software), internet service and any applicable business registration. You don’t need a big team to get started, either. You can run the business and execute a lot of the deliverables yourself, in the beginning, to save money on salaries and wages.
• Large potential client base. Thanks to digital tools, ad agencies can serve clients anywhere in the world. Although the marketing industry is crowded, there are a lot of opportunities to carve out a niche by catering to specific types of businesses, such as restaurants, salons, medical practices or law firms.
• Low barrier to entry. You don’t need years of marketing experience to start a digital advertising agency because the industry is constantly changing. With a baseline knowledge of content marketing and social media, plus a willingness to learn new and emerging platforms, you can make a name for yourself as a professional advertiser.
• Scalability. With a robust team of affordable freelancers and contractors, your agency can scale up quickly and offer full-service marketing campaigns with copywriting, social media, email marketing, graphic design, SEO and more.

Jenni Simcoe contributed to this article.

Get Weekly 5-Minute Business Advice

B. newsletter is your digest of bite-sized news, thought & brand leadership, and entertainment. All in one email.

Our mission is to help you take your team, your business and your career to the next level. Whether you're here for product recommendations, research or career advice, we're happy you're here!

Business Plan For A Marketing Agency Templates: How To Write & Examples

Frequently Asked Questions

Related templates.

Follow Up Email After Networking Templates: How To Write & Examples

Executive Summary Templates: How To Write & Examples

Abandoned Cart Email Templates: How To Write & Examples

Shopify Abandoned Cart Email Templates: How To Write & Examples

Pr Outreach Email Templates: How To Write & Examples

Airbnb Landlord Outreach Email Templates: How To Write & Examples

Webinar Email Templates: How To Write & Examples

Client Offboarding Email Templates: How To Write & Examples

Ebay Product Description Templates: How To Write & Examples

Loan Officer Email Templates: How To Write & Examples

How it works.

Ready to level-up?

Write 10x faster, engage your audience, & never struggle with the blank page again.

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai pitch deck generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customers Success Stories

Business Plan Course

Small Business Tools

Strategic Canvas Templates

E-books, Guides & More

• Sample Business Plans
• IT, Staffing & Customer Service

Digital Marketing Agency Business Plan

Things to Consider Before Writing a Digital Marketing Agency Business Plan

Have a good team.

Digital marketing involves a variety of skills and specializations. Having a team of individuals who complement each other’s skills can take you a long way. Hence, it is essential to have a team that can help you through complicated projects and comes up with unique ideas to help your agency stand out. Also, if you get to combine it with brilliant execution, your agency is highly likely to get an upper hand over your competitors.

Build your online presence

Your online presence is not only important for promoting your business but also proof of how skilled you are at your job. After all, if you can build your business’s presence your clients are more likely to trust you with their businesses.

Pick your niche

As almost any business or organization can use the help of a digital marketing agency, it is essential to pick one that suits you the best before getting started. It helps you develop your expertise in that area and get better at more complex projects. Which eventually helps your business become profitable and build your brand’s identity as well.

Build a system to help you keep up with the trends

Marketing and social media today are highly influenced by trends. Memes are ruling the digital space and people like to see different perspectives from a brand on popular topics. Hence, it is important to develop a system that helps you stay updated with trending topics as well as new methodologies.

Chalking out Your Business Plan

With each passing day, the number of internet users is increasing. The world is changing much faster with the help of the internet, smartphones, smart televisions, and many other digital gadgets & technology.

Marketing is all about reaching out to your potential audience in all possible ways. Digital marketing is the best of them because people are spending most of their time on the internet.

Digital marketing includes Search Engine Optimization (SEO), Content Marketing, Social Media Marketing, Pay Per Click (PPC), Affiliate Marketing, Native Advertising, Email Marketing, Online PR, Sponsored content, Backlinks Generation, and many more services.

Before you start your digital marketing agency, it is important to have a clear business plan.

Writing Your Business Plan

If you are planning to start a new digital marketing business , the first thing you will need is a business plan. Use our sample Digital Marketing Business Plan created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new digital marketing agency, spend as much time as you can reading through some examples of  advertising and marketing-related business plans .

Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample Digital Marketing Agency Business Plan for you to get a good idea about what a perfect digital marketing business plan should look like and what details you will need to include in your stunning business plan .

Digital Marketing Agency Business Plan Outline

This is the standard digital marketing agency business plan outline which will cover all the important sections that you should include in your business plan.

• Introduction
• Mission Statement
• Vision Statement
• Keys to Success
• 3 Year profit forecast
• Company Ownership
• SWOT Analysis
• Market Trends
• Target Market
• Competitive Advantage
• Payment Options
• Sales Forecast
• Sales Yearly
• Detailed Sales Forecast
• Personnel Plan
• Average Salaries
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample digital marketing business plan

Need help writing your business plan from scratch? Here you go;  download our free digital marketing business plan pdf  to start.

It’s a modern business plan template specifically designed for your digital marketing business. Use the example business plan as a guide for writing your own.

After getting started with Upmetrics , you can copy this sample business plan into your business plan and modify the required information and download your digital marketing agency business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.

Related Posts

Internet Service Provider Business Plan

Advertising Agency Business Plan

Financial Guide for New Startups

10 Best AI Business Plan Generator

10 Key Elements of a Business Plan

Method for Customer Analysis

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Starting an Advertising Agency?

How to write an advertising agency business plan (fast), step by step (actionable) case study.

If you’re looking for a sample of an Advertising Agency Business Plan, then look no further! We have produced this plan to give you ideas and inspiration.

To be successful in any business you need to consider a lot of factors, and marketing is definitely one of them. That’s why advertising can be seen as one of the most lucrative, recession-proof businesses you could wish to venture into.

So without further ado…

Let’s look at this example of an Advertising Agency Business Plan.

#1 Executive Summary for an Advertising Agency Business Plan

The Executive Summary section of your business plan outlines exactly what your business does.

It’s an overview of your business and summarizes all its key points, as well as being an introduction for the rest of your plan.

The main goal of this advertising agency business plan is to convince either the bank or an investor to invest in the business by providing start-up capital. It’s vital that you provide a solid case for your business idea, which is why your executive summary is so important.

In our Advertising Agency Business Plan sample, the executive summary is composed of:

• The Company
• The Investment Offer
• The Exit Strategy

Management Team

• Background of the Company
• Mission Statement

Check it out and feel free to lift any of it that you want.

The #Executive #Summary outlines what your business does, summarizes your key points, and prepares investors for the rest of your #businessplan. It’s vital you provide a solid case for your business idea, which is why your #executive #summary is so important! Tweet

Executive Summary

Established in March 2012, Advertising Agency is a specialist public consultation, PR, political liaison, and creative agency which operates across the USA. We currently work in the housing, property, regeneration, education and retail sectors. We are expanding into the energy, transport, and health sectors.

We are experts in creating and managing corporate communication campaigns, public affairs, media relations, copywriting, public consultation, and providing strategic counseling and social and digital communications.

Our objective has been to create a communications agency that is fit for the modern age.

Advertising Agency

We were named Best New Agency in 2013 and best Public Affairs Agency of the Year 2013. We are very ambitious and we have already promoted and defended the reputation of major national brands including AllMart and New York Bank. Based in Manhattan, we also work with a growing list of regional clients including ABC Homes and One Manhattan. We offer a fully integrated service for the likes of national architects XYZ, contractor United States and Manhattan law firm Manhattan LLP.

We’re looking to secure funding to enable Advertising Agency to open offices in California and New York – to take advantage of the many opportunities offered in the US and the growing market in the eastern region of the US. Our agency has three distinct offers: Agency Consult, providing intelligent, creative, award-winning public affairs; Agency PR, serving the property, construction and professional services sectors with media relations and social media management; and Agency Create, delivering all aspects of branding, digital design, print services, video production and animation. Each team stands up in its own right as a leader in its field – no other US agency delivers these disciplines like we do.

We’re really proud of our achievements to date and we’re very excited at what the future holds.

Welcome to Advertising Agency.

Investment Offer

2016 is a key year for Advertising Agency. Our aspiration is to grow into a >$1million turnover company by 2017 and hit $3million by 2021. To achieve this aim, we have identified the need to open an office in California in 2016 to help service the California region, open an office in New York to take advantage of the housing, renewables and infrastructure investment in the US, and also to invest in our creative and digital team which operates out of our Manhattan office. By opening up California and New York offices, we believe we will be able to secure some major contracts in a regional housing, regeneration, transport and renewable market that is continuing to grow at pace. Our California office in particular would allow us to expand into the infrastructure and transport sectors.

To help with our growth plans and to achieve our 2017 and 2021 aspirations, we are seeking $230,000 in return for 23% of our business.

The investment will help Advertising Agency to:

• Grow our California and New York presence
• Secure start-up office space in California and New York
• Expand into the transport and renewable sectors
• Be positioned and marketed specifically to a California market
• Be at the pitch table to support the consultation for major housing, regeneration, transport, and renewable projects
• Service the volume housebuilders and other developers in a growing regional southern market
• Work alongside some of the biggest California based planning agencies including EFG, NBO and Crimson Planning (all known to Advertising Agency) and their clients – airport, infrastructure, etc.
• Significantly grow our digital and creative marketing services
• Provide a comprehensive nationwide offer to support clients who work across the US.

Exit Strategy

Our Exit Strategy needs to be further confirmed at the next Board Meeting, but we would like the company sold within eight to 10 years.

#2 Advertising Agency Business Plan Company Profile Section

The Company Profile in your Advertising Agency Business Plan is also known as the Company Description.

If it’s well written, your potential investors will find easy to understand your business model, your mission and goals, and how it’s going to meet the needs of your target market.

For the purpose of this business plan, we’ve included the following:

• The Management Team

Jack is a versatile communicator and has had almost 25 years’ experience of working with some of the biggest names in the US.

Previous to setting up Advertising Agency, Jack was a non-shareholding director at a Manhattan based public affairs agency for five years. Jack helped to transform that agency into a $1.5 million t/o company and win and service major blue chip clients.

Jack has been instrumental in turning Advertising Agency, a $6,000 start-up company into a $500,000 t/o profitable business in less than four years.

He is excellent at motivating and inspiring his team to deliver. Nicknamed ‘The Rainmaker’, Jack has been responsible for bringing 90% of the new business into Advertising Agency.

Jack is both a visionary and able to see the potential for major growth as well as grounded and able to manage the business to successfully deliver. He is innovative and has been able to shape Advertising Agency into an agency that has brought in the right skills to meet the ever-changing communications and marketing demands which clients now expect.

He is particularly skilled at managing media issues and crises. Jack gets on with people and is an expert at capturing hearts and minds. His work in reinventing consultation to help developers achieve planning consents has won awards.

He is as comfortable presenting to a board of directors, briefing the national press, discussing policy or planning applications with politicians as he is working with local people at grass roots level.

Jack has worked on numerous contentious planning applications, including mobile phone masts and supermarkets and wind farms, and he has an excellent understanding of the planning process as well as how to identify and work with supporters.

As an ex-journalist, Jenny has honed her skills as a writer and has the ability to write about a range of subjects to fit perfectly with the audience.

PR and writing is in her blood. She cut her teeth in PR in Manhattan, where she has worked for the last 14 years. Jenny has a natural ability to ‘sell’ stories to the media and handle press enquiries, having helped run the press office for one of the largest councils in the US.

Feature writing, blogging, opinion pieces, website copy and the good old, solid press release are her specialties. Jenny is brilliant at creating and placing content where it is guaranteed to reach the right audiences. A creative thinker, she helped bring brands to life through clever use of storytelling and media relations.

David is a communications expert with 10 years’ experience of working in public affairs, community consultation and PR. He is adept at understanding audiences and engaging in effective and creative ways.

From Facebook campaigns to viral films, from media releases to community meetings, Pete has a track record of delivering results for clients across the country.

A veteran of over 50 housing, supermarket, infrastructure and energy planning applications, Pete has been entrusted to manage community and stakeholder engagement by some of the UK’s leading names in housing, retail, energy, and regeneration.

His work has been recognized with PR industry awards for his innovative and committed approach to community consultation on complex and controversial planning proposals. As well as his effective approach to building relationships with communities, David has the skills required to decipher complicated planning proposals into plain language, with the help of a creative approach to visual communication.

An attention to detail and commitment to shared goals means David continues to enjoy excellent relationships with the clients, colleagues, and communities he has worked with.

Patrick has over a decade’s experience writing, editing, and designing websites; and as a freelance pop culture and tech journalist has written for a wide range of digital and print outlets including Wired, BBC America, Den of Geek and When Saturday Comes. As web developer, Patrick is responsible for in-house site development on behalf of our clients, tailoring clean, accessible and responsive websites to their specific needs. As a writer, he specializes in informative feature and promotional content, making information accessible and engaging to a wide audience.

Patricia is a qualified chartered accountant with a wealth of experience working as both a business advisor in the accounting profession and as a Finance Director in industry.

Since moving from the accounting profession, Patricia’s experience has been at director level – in both finance and managing director roles. This has led to experience in a wide range of business roles including leadership, operations, human resources, information technology as well as the excellent core knowledge of accountancy. As a commercially aware accountant she has the ability to look at the company’s business as a whole, not just the financials.

Patricia also has a strong IT background and holds a postgraduate diploma in Business Information Technology. Her skills working with both established and start-up businesses will help Advertising Agency’s on-going growth.

In November 2014 we rebranded the agency as Advertising Agency – to reflect our offer of PR, Consultation and Design. The registered business name remains as Advertising Agency Relations Limited.

The company was set-up using $6,000 of director loans in February 2013. Since then we have grown into a profit-making $457,473 turnover company and we remain debt free. Our financial year is 1st November to 31st October.

The company currently employs 11 full-time members of staff including two strong and experienced account directors, account managers, a social media manager, an account executive, a marketing executive, and a creative designer. We already have a strong client list which includes AllMart, Places for People, Manhattan Living, National College for high Speed Rail, and New York Bank. We are currently based in Manhattan but we are a national agency servicing clients across the US.

In May 2016 we pitched and won the Olympic Park account. This is a joint venture between Balfour Beatty and Places for People. The account is our first California office client and will commence in September. We will be announcing our win to coincide with our California office announcement in September. We will be providing our full range of communications services on what has the potential to be a 15-year project.

We have also just won two new accounts.

The first is to support the for High Speed Rail launch. This will be announced in September. We will be supporting the college with PR and creative services to drive the recruitment of students in California to help produce the engineers of the future and attract people into rail industry. This was a major win for us, as we competed against four other agencies. It’s a very significant fee (c.$100,000 pa) and opens the door to High Speed Rail. Furthermore, this is a landmark infrastructure client and the win also establishes us firmly in the education sector.

The second is to support the launch of Heaven – a new retirement village company. We will be providing a full range of services from planning consultation through to PR and sales support. We are also currently in discussions with some very significant names, including two volume house builders.

We have a growing reputation as a successful and reliable agency and this is reflected in the number of awards that Advertising Agency has managed to win within just 3 years of entering the market:

• New Agency of the Year (2013) – winner
• Public Affairs Agency of the Year (2014) – runner up
• Public Affairs Agency of the Year (2015) – winner
• Small agency of the Year (2016) – runner up

A #mission #statement is a short statement of an organization's purpose and shows the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. Tweet

MISSION STATEMENT

At the heart of our business lies our commitment to use an integrated approach across all PR, Public Affairs, Creative and Marketing disciplines at our disposal to address our clients’ needs and problems and provide innovative and effective solutions. We help our clients utilize and take advantage of all the communications channels available to ensure their message is seen, heard, and read in all the right places.

Our core principle is to provide best value for money and generate a reasonable return on investment.

Agency responsibility is central to our company ethos. This is why we donate a percentage of our pre-tax profits to charity and give staff the opportunity to spend two days a year supporting a local charity of their choice.

OUR DIFFERENCE

Advertising Agency is already establishing itself as a creative, personable, intelligent public affairs agency that can engage stakeholders and communities, identify supporters, and mobilize them to help influence the planning decisions being made in their areas. We are setting a new standard in public affairs – one of which focuses more on the communities in which we work, not just on politicians (like so many of our competitors). We have already out-performed agencies in California in securing a number of national PR clients.

#3 Advertising Agency Business Plan Products & Services Section

The Products and Services section needs to be much more than simply a list of what your new business is going to provide. This is especially important if you’re looking to get funding.

Make sure that you showcase the value, the quality, and the benefits of your business.

Ask yoursel f:

• What sets you apart from your competitors?
• How does your pricing compare?
• Why would people buy from you as opposed to your competitors?

Here’s the example.

Products And Services

What we sell.

• Advertising Agency provides a wide array of services. We have three teams of experienced specialists:

Agency Consult

Agency create.

They offer their expertise in the following areas:

Agency Consult – Our team of highly experienced consultants offer their expertise in the following areas:

• Political/stakeholder mapping and engagement;
• Political analysis and briefing;
• Public consultation events;
• Project websites;
• Social media campaigns;
• Supporter activity;

and much more.

Agency PR – Our specialist PR team work for national and regional clients in the housing, construction and professional services:

• Press release writing;
• Crisis and issue management and support;
• Copy writing;
• Social media support;
• Website and blogs management;
• Effective PR support.

Agency Create – Our in-house design studio provides all aspects of graphic design, film production, and animation, including:

• All aspects of graphic design from websites to brochures;
• Film production and animation;
• Social media content writing.

From stakeholder mapping and political briefings to social media campaigns and community events, our expert public affairs team can help deliver the public and local authority support your planning application needs to be successful.

Effective public relations is central to every successful organization. Our experienced team of PR professionals and ex-journalists can raise your profile, shape your reputation and reach and engage new audiences for your business.

Exceptional design is key to getting your message across in the right way – and our in-house creative team can work with you to create the look and style you need for your social media, website, film, brochure, and much more.

Competitors

Advertising Agency has two significant competitors based, among others, in California and Manhattan: Remarkable PR and ABC Communications. These are also public affairs and PR agencies providing similar services from government relations, through to stakeholder engagement, to issues and crisis management.

What makes Advertising Agency stand out is our new approach to public affairs. Instead of focusing primarily on the influencers and politicians – which is what most of our competitors do – we concentrate more on the communities we work for by trying to provide people with factual information and gaining support. The support is then harnessed to influence political decision making.

With a team of experienced professionals onboard and with excellent people skills, we are able to talk to chief executives and members of the community alike. Since the industry as a whole has a reputation of over-promising and under-delivering, we do our upmost to provide best value for money and establish a good name.

Finally, the potential of Advertising Agency graphics production, social media and internal communications function offers further opportunity.

Product And Service Development

Advertising Agency currently services clients in the housing, contractor, retail, education, property, and regeneration sectors. We are constantly monitoring market needs and developing our services. In future, with the right resource and experience, we will be targeting the following sectors:

• Transport and infrastructure
• Renewable and non-renewable Energy (specifically anaerobic digestion, shale gas)
• Retirement Villages
• Health Sectors
• Rural and farming sectors

Intellectual Property

Steps have been taken to protect the property of Advertising Agency, Agency Consult, Agency PR, and Agency Create in a trademark and copyright.

#4 Advertising Agency Business Plan Target Market Section

While conducting research for your business plan, it’s important to identify your potential audience – that is, the people who are going to buy your products.

Basically, you need to define your target market.

This section can include:

• Market Overview
• Market Needs
• Market Trends
• Market Growth
• Industry Analysis

Here’s our example.

Target Market

Market overview.

The Public Affairs and Public Relations markets, both in Manhattan and other parts of the US, are very competitive. We are a dynamic agency delivering campaigns for clients in the property, construction, housing, retail, education, and energy sections, with aspirations to expand into other markets. We combine online expertise, media intelligence, political insight and engaging personalities to get results. We reach new audiences, achieve great media coverage, give communities a voice and help clients successfully deliver their projects.

MARKET NEEDS

We understand the planning process and we work on a range of planning applications from small housing developments, major housing-led regeneration projects, sports stadia, and new supermarkets to renewable energy schemes, as well as major infrastructure projects.

Unlike our competitors, we do not focus mainly on reaching to the most influential person as or politicians. We take a new approach and work on stablishing good relations within the community we are operating in, gain support for projects and make sure the people involved are presented with factual information.

To achieve this, we concentrate on the online activity, like the social media channels, starting a dedicated Facebook page, setting up a website, etc. We confront the opponents and clear out the misinformation. It is our job to give the community access to facts to get people drawn to the idea. We also organize consultations, where people can voice their opinions.

We all keep abreast with all the changes in the market by regularly reading and engaging with the relevant trade publications, e.g. Planning and Place making; Inside Housing; Estates Gazette and Property Week. Furthermore, we hold team meetings every morning to read the national papers and then share and brainstorm relevant insights and stories.

In addition to all that, we regularly attend relevant trade conferences, and we regularly meet with journalists and have very good relationships with our key media contacts who are often a good source of information. We are good networkers and often attend regular breakfast seminars and briefings.

MARKET TRENDS

California’s recovery from the 2008 recession continues. The property, regeneration and development sectors have strengthened over the past two years. Several major developments are continuing with a healthy pipeline of projects large and small are at various stages of planning.

The house-building program continues across California with varying levels of urgency.

MARKET GROWTH

When it comes to the housing industry, we are experiencing a significant growth where there is a huge concentration of large infrastructure projects. By opening a new office in California, we are planning to maximize on that.

Since we have significant experience working with businesses and individuals across the US, and the word of mouth is our most powerful tool, we are hoping that developers will be turning to our organization to help them with the planning process, consultation and PR.

INDUSTRY ANALYSIS

The California PR and communications sector is very competitive. The larger, established PR companies had made a significant number of staff redundant as client budgets tightened since 2008. This has resulted in an increase in the number of smaller niche PR businesses starting up.

Since 2011 a lot of these smaller companies have been acquired by more established industry stalwarts as they seek to expand client lists and recoup talent. While this has resulted in a lot of consolidation it has also meant there is a lot of opportunity as potential clients review their PR and communications servicing. It is a highly competitive but very active market.

The market is also very diverse. As developers, construction companies, public sector regeneration bodies, property companies, architects, retail companies and housing associations seek to take advantage of the increasingly positive policy statements by both central and local government – as well as an increasingly attractive economic environment – there are opportunities for those service companies that can prove themselves to be valuable in terms of short term commercial growth and sound additional benefit to attract buyers and investors. In the housing sector, for example, the reduction in grants from central government means they have a requirement to distinguish themselves, work more closely with developers and attract private sector investment as well as establishing a demonstrable record of commercial self-sufficiency.

We believe that what is needed to operate successfully in the industry, is the right approach to the business. At Advertising Agency, we add a different dimension to the industry by offering a truly extensive range of services and focusing more on the community, and various ways to win over the potential opponents, rather than just directly engaging the politicians.

Key Customers

Our current sectors.

Advertising Agency currently services clients within the housing, contractor, retail, property, education and regeneration.

TARGETED SECTORS

With the right resource and experience, we will be targeting the following sectors:

• Transport and Infrastructure
• Energy (specifically anaerobic digestion and shale gas)
• Retirement villages

OUR CLIENTS

We work with a growing number of clients across property, retail, energy and construction – proudly promoting, defending and developing brands across the country.

In future, we are planning to target the following sectors: transport and infrastructure, energy, retirement villages, leisure, health, education and rural and farming sectors.

The vast majority of our customer base are retainers. We believe that clients keep coming back to us, as they value our first class service. We have full communications skills in-house from design, social media and film production to traditional PR, marketing and copywriting. We are highly dependable when it comes to meeting deadlines: we deliver when we say we are going to and we get results. We make sure to cater to our clients’ needs and suggestions and not only that – we often go beyond what is required and come up with extra ideas and solutions. And last, but not least, we keep abreast with all the the regulations and policies. We know the sectors our clients operate it, and are always able to offer sound advice.

#5 Advertising Agency Business Plan Marketing Strategy Section

The marketing strategy section of your business plan describes who your customers are going to be and how you plan to communicate to them the services or goods you are offering.

If your potential customers are not made aware of your business, you are not going to stay in business for very long!

Defining a marketing strategy in your business plan highlights your understanding and knowledge and emphasizes what makes your business concept compelling. It also outlines how you plan to attract and maintain a customer/client base.

Ask yourself:

• How are you planning to advertise to your market?
• What is your competitive edge?
• What is your sales strategy?

Let’s look at the following example.

Strategy And Implementation

As far as marketing is concerned, Advertising Agency has not done any advertising or marketing, other than some low level engagement on social media (Facebook, Twitter, Pinterest, Tumblrt, LinkedIn and Instagram). Our success to date has largely been down to our team’s contacts books and especially word of mouth. This has been our most powerful and important tool from both our and the clients’ point of view.

To launch California, New York and to celebrate the announcement of the new Group structure we will be a having a drinks evening in both locations. Existing clients, prospective clients and our network of contacts will be invited. Apart from that, we will also have a launch communications plan to include press releases to the relevant media, and website banner ads taken out on targeted websites.

Our California MD will be joining a number of California property clubs and will be creating a separate communications strategy aimed specifically at the rail industry.

We will be introducing the Advertising Agency marketing plan which will include a regular HTML newsletter update to our database, a more considered and high profile push across all social media, and creating speaking opportunities at conferences.

Our Manhattan office will be moving from south Manhattan to the Manhattan City Centre in February – that will make a statement and will provide easier access to business, clients and potential clients.

Our services are provided on a monthly retainer basis (all PR, some public affairs clients) or for an agreed one-off fee (design work, most public affairs projects). Our strategy has been to build the business around clients paying a monthly retainer, with the more lucrative – but shorter term – project work adding to this. We continue to add services to our agency to create new revenue streams, the most recent example being to invest in an in-house video production offer which we promote to both existing and potentially new clients.

We have identified a California office because we are already servicing clients in California and the SE. What is more, we believe that the opportunities to grow are significant. The California office has the potential to see our turnover significantly increase over two years. The California office is opening on 5th September. We are planning to coincide the office announcement with the announcement of our Balfour Beatty JV win – our first California office client.

We are confident of securing some early business for the New York office via our planning consultant contacts. These consultants are working with a number of developers who all often require consultation and public affairs support.

With our connection to High Speed Rail and the rail industry via Jim Mann our California lead, we are confident of securing work in this sector. We anticipate there will be a permanent team of at least three based in New York by the end of 2017.

The opening of the New York office will also be followed by promotional activity: we are going to promote the team, including our associate director.

Your #Market #Analysis section of a business plan is one of the most important aspects of your marketing plan. It defines where you are currently in terms of your market, product, customer and competition. Check out this example in our #Advertising Agency #BusinessPlan! Tweet

Swot Analysis

We are a niche agency which is now established and recognized in its peer group. The company directors have had offers of buy-outs from other, larger agencies lacking in public consultation experience. Just 9 months after starting, the agency was awarded Best New Agency at the PRCA industry awards.

What is more, the company has a good team (consultation, former youth worker, journalists, PR and design) with the right blend of experience to service current clients and bring in new business. MD Jack Black has a wealth of contacts and is well known and well respected across the industry and in sectors in which Social operates. Director Jenny Lowe is a former journalist with 15 years PR experience, and is able to manage the day-to-day running of the business with skills to manage the staff. Furthermore, although we are currently Manhattan-based, our staff are already working across schemes in California and know the California market well. The company is not tied to one region and has ambitions to branch out to other key areas.

On top of all that, our accounts are solid and turnover and gross profit is as we predicted for year 3 in our original business plan. We have secured the services of a freelance finance director.

Although we are a $500,000 t/o company, our current weakness is that we do not have the cashflow to enable us to grow.

OPPORTUNITIES

We are starting to see significant opportunities with housebuilders and retailers bringing sites forward for consultation.

What is more, opening a California office is another major opportunity for us. We are already working on projects in the South. Our niche offer and the way we deliver planning application consultation will secure some major new contracts.

Thanks to a number of successful campaigns and our good reputation, people are keen to work for Agency – and there are a number of high quality, high earning staff speculatively sending their CVs. This gives us an opportunity to create a network of regional offices, starting in California. Building a stronger team to take the business forward.

Moreover, Jim Mann, our California office managing director is well connected in our markets and will bring an additional market – transport – into the agency. The company has the skills and ability to grow into new sectors such as retirement villages.

One of our biggest threats is the fact that there are clients who do not renew their contracts and the work dries up. In future, we are planning to implement a reliable CRM system to prevent that.

Another possible threat is that we might have trouble finding the right people to staff our California office, or that we win new business but cannot service it due to cashflow and not being able to grow our core team. California office could also not perform as well as we have planned.

We may also experience cashflow problems and lack of funding to further grow the business.

It may also happen, that our competitor will copy our business model and start delivering their services our way.

COMPETITIVE EDGE

Advertising Agency is already establishing itself as a creative, personable, intelligent public affairs agency that can engage stakeholders and communities, identify supporters and mobilise them to help influence the planning decisions being made in their areas. We are setting a new standard in public affairs, one which focuses more on the communities in which we work, not just at politicians (like so many of our competitors). Although based in the north, we have already out- performed agencies in California in securing a number of national PR clients.

By building relationships with national brands such as WallMart and Places for People, we have the opportunity to gain an insight into what they require from an agency – and therefore how we can stay ahead of the competition.

PROMOTIONAL ACTIVITY

Our main source of advertising our services is through our website: www.advertising agency.com. We also promote our business across social media channels: Facebook, Twitter, Tumblr, Instagram, Linkedin, etc.,

Our reputation is everything and we also rely heavily on the word of mouth.

We are planning to implement a reliable CRM system to have contact with our clients and manage our extensive database of business contacts. We are also working towards a regular newsletter. For the time being, we do a lot of engagement through the LinkedIn page as well.

STRATEGIC ALIANCES

We might establish strategic alliances and partnerships in the future.

INVESTMENT INFORMATION

2016 is a key year in for Advertising Agency. Our aspiration is to grow into a >$1million turnover company by 2017 and hit $3million by 2021. To achieve this aim, we have identified the need to open an office in California in 2016 to help service the Greater California and open an office in New York to take advantage of the housing, renewables and infrastructure investment and also to invest in our creative and digital team which operates out of our Manhattan office.

Advertising Agency is currently valued at $1million

USE OF FUNDS

The funds would be used to open a California and New York office as well as grow our digital offer. We would hire the right team to secure and deliver new business in these areas. Including:

Expanding into the transport and renewable sectors

Be at the pitch table to support the consultation for major housing and regeneration projects

Service the volume housebuilders and other developers in growing regional southern and eastern markets.

Work alongside some of the biggest California based planning agencies.

We have identified office space in California which is at one of our clients, Places for People’s offices. We are planning to start with two desks. There would be a one year license agreement for the office space. The office will be located at: West Street California .

The California office will require a small team with senior leadership in order to successfully service existing clients and to exploit new business opportunities.

We have identified Jim Mann to lead the California office. Jim has just left the media team for USA Media and has been known to Jack Black since 1997.

In the first 12 months it is likely that Jim will require the support of at least two other permanent members of staff that would include a deputy (account director) and an account manager / senior account executive. Other resource would be pulled in from a bank of freelance contacts, as and when required.

Jim has worked in the PR industry for 20 years. He has worked in the public sector and for some of the best known major PR agencies. He has experience of leading PR campaigns for some of the largest FMCG clients (including Nike), he has held Board level positions and has set up and sold two agencies of his own.

He has worked with several developers, housing agencies, planners and architects.

In 2011 Jim set up Mann PR, a specialist PR company focused on the property, regeneration and development sectors in California. In 2013, this was sold.

PROJECTED INCOME

In its first year of trading, we forecast that we could earn in the region of $75,000 per annum from one volume housebuilder alone –providing consultation and public affairs support.

Additional revenue would be generated via project work coming from the retail and transport sectors. We forecast that individual project work would generate $100,0000

We would seek to secure at least two retained clients, generating c.$75,000

The office costs will be $7,200 for a desk in a serviced office.

NEW YORK OPERATING ENVIRONMENT

• Agency is already working with a number of clients in New York
• Wide range of contacts already established
• Existing key clients have offices/projects based here
• New York office – Senior Consultant identified to run and help drive new business
• Huge potential growth in this city
• Identified a strong candidate to run the New York operation

The New York office will be headed up by group director Gary Johns. Gary is already leading on projects in New York for WallMart. Gary will be supported by agency MD Jack Black. Jack is very well connected with the New York leadership and this year attended MIM with the New York Local Enterprise Partnership.

#6 Advertising Agency Business Plan Financial Section

Ensuring that you have a COMPLETE financial plan within your business plan will DOUBLE your chances of investment as well as the future growth of your business.

A lot of small businesses don’t have a financial plan and it’s essential to your long-term success and business growth.

We’ve listed here the key elements you need to have in a successful financial section:

• Initial Start Up Expenses – Especially if this is a start-up idea, it’s essential that you have a description of what you need for investment purposes.
• Sales Forecast – It’s essential to have an estimate of your monthly sales revenue as well as annual. This helps you understand your business and plan out any marketing and growth strategies.
• Direct cost of sales – Measures the amount of cash the company will have to spend to produce the goods or services sold by the company. The direct cost of sales only includes the expenses directly associated to production.
• Profit and Loss Forecast – This is a statement summarizing the revenues, costs and expenses incurred during a specific period.
• Balance Sheet – This is the financial position of the company and states its assets, liabilities and owners’ equity at a particular point in time. It illustrates the business’s net worth.
• Loan Repayment – This shows the lender or potential investor the act of paying back any monies.

So… Are you ready to look at some figures?

Projected Income

Our predicted fee income from the New York office in year one is $100k, rising to $450k in year two and $650k in year three.

Gross Profit

Budget (with Monthly Detail)

Balance Sheet

• Ecommerce Business Plan sample
• Bar & Restaurant Business Plan sample
• Medical Center Business Plan sample
• Outdoor Activity Business Plan sample
• Bakery Business Plan sample
• Boutique Business Plan sample
• Real Estate Business Plan Sample

Additional Resources:

• 40 Common Business Plan Mistakes to Avoid when Writing your Plan
• What is a Business plan and why do you need one?
• How to Write a Business Proposal in 5 Easy Steps
• 10 FREE Business Name Generator Tools to find your perfect business name

Now, over to you...

Now I’d love to hear from you:

Are you going to start up your own advertising agency, or have you recently written a business plan?

We’d love to know what you thought about our advertising agency business plan sample.

Feel free to leave any comments below and I will be sure to answer them as soon as they come in.

Useful Links

Leave a comment cancel reply.

WEEKLY GEMS

Sign up for weekly tips on how to improve your business

Industries Overview

Latest articles, kids remember seeing ads on youtube over streaming, tiktok, exclusive: instagram's nano-influencers outperform—as do tiktok’s upper echelon of creators, where and how gen alpha consumes content: from youtube to netflix to roblox, a slight increase in minutes per day with media, thanks to another boost for digital, social media users trust brands over influencers on finance, apparel, skincare, deep discounting, mcommerce remain keys to holiday season success, cash-back rewards drive consumers to open new credit cards, starbucks saying goodbye to global cmo role is part of a larger trend, ai will ‘supercharge’ creativity but exacerbate existing privacy concerns, says vml exec, openai’s sora could create a new era for video marketing—but it could also clutter youtube and tiktok, about emarketer, guide to influencer marketing: trends, tactics, and kpis.

What marketers need to know about its growth and stability

Powerful data and analysis on nearly every digital topic

Want more research .

Sign up for the EMARKETER Daily Newsletter

For many, being a social media influencer has transformed from a side gig into a multimillion dollar business. Creators now have more say in the sponsored content they create for brands as well as the earnings they receive. And as creators continue to prove themselves as influential brand advocates, marketers are tapping these influencers for content beyond social feeds, including TV, out-of-home, and other digital media.  

Influencers have also proven resilient amid economic uncertainty and an increasingly crowded space. Influencer marketing spend rose roughly 3.5 times faster in 2023 than social ad spending, according to EMARKETER’s July 2023 forecast. 

In this guide, we explore the current state of influencer marketing, and why marketers, social platforms, and media companies should adjust their strategies as the power of the creator economy grows. 

• Want to learn more about influencer marketing and other marketing trends?  Sign up for the EMARKETER Daily newsletter.

What is the creator economy?

The creator economy , also called the influencer economy, is the interconnected ecosystem of creators, audiences, digital platforms, marketers, and agencies and/or vendors. The creator economy, as defined by EMARKETER’s Creator Economy Explainer report , enables creators to generate revenues in the form of money, goods, or services through their content, usually delivered via social media platforms. Meanwhile, marketers can partner with creators to build awareness for their brands.

Because interaction among stakeholders is constantly evolving, revenue data is sparse. A March 2023 estimate from Citigroup values the creator economy at $65.2 billion in 2023. By 2024, that figure is expected to reach $74.0 billion. 

What is influencer marketing?

Influencer marketing involves a celebrity, content creator, subject matter expert, or public figure endorsing a brand’s product or service to drive social proof. 

The market is rapidly expanding as influencer types have increased, with influencers filling every conceivable niche and sub-niche interest. 

Here are the types of influencers, based on follower count and focuses:

• Mega-influencers: Often celebrity influencers, those accounts with more than 1 million followers 
• Macro-influencers: Influencers with a follower count of 100,000 to 999,999
• Mid-tier influencers: Influencers with a follower count of 20,000 to 99,999
• Micro-influencers: Followers ranging between 5,000 to 19,999 
• Nano-influencers: A community of 1,000 to 4,999 followers 
• Kidfluencers: Gen Alphas with social followings that often review toys and games 
• Gaming influencers: Esport and video game players who discuss game strategy and livestream while in-game 
• Virtual influencers: Computer-generated avatars like Noonoouri, a fashion model and digital-only popstar 

The pandemic sped up changes in influencer marketing that were already underway, such as the trend toward “unfiltered” or less-scripted content, the rise of TikTok, and the popularity of “everyday influencers” with genuine and relatable personalities like Elyse Myers. 

Industries like financial services that hadn’t invested in influencer marketing earlier are also learning to navigate the space. And as ecommerce and social media converge, influencers will become increasingly vital intermediaries, helping to connect brands with consumers on social media. 

Creators vs. influencers: What’s the difference? 

Creators create content. Influencers are creators if the content they develop can sway the purchase decisions of a population regardless of whether they are being paid to promote a product. The term refers to a wide group of people from celebrities to loyal customers. Creators are influencers if their content affects purchase decisions. 

Who is a creator? 

Everyone has the potential to be a content creator thanks to how the term is defined. Adobe estimates there could be up to 303 million creators worldwide. For context, that figure is close to the US population at the start of 2023, per the US Census Bureau. 

Most content creators worldwide are under 41, but there are creators of all ages, including Gen Xers and baby boomers, per Adobe. 

Creators over 60 years old, dubbed “granfluencers,” have found popularity on social media due to their cross-generational appeal. 

For example, Nonna Pia, a TikTok account with 4 million followers, features a grandmother who cooks classic Italian dishes while her grandson narrates. Similarly, the Instagram account “Excuse My Grandma” follows a grandmother-granddaughter duo as they discuss generational differences in dating, fashion, and more. 

Creator categories

Although there is an account for every interest and target audience—from foraging to chiropractic medicine—lifestyle, fashion, and beauty are among the top creator categories.

While broad, these top categories overlap with many other industries, including travel, health, entertainment, food and drink, and art. Cross-category appeal is ideal for brand marketers looking to expand their reach to find like-minded audience demographics. 

Areas that have seen recent growth in creator focus include:

Collegiate sports

A 2021 NCAA policy change allows college athletes to be compensated for their name, image, and likeness. College athletes already command large audiences and regularly create content on social media, per August 2022 data from Curastory.  

B2B professionals 

Industry professionals are increasingly building audiences by sharing B2B content online. For example, a “ LinkedInfluencer ” is an influencer on B2B social platform LinkedIn. 

Nearly 1 in 4 people in the US are on LinkedIn, according to EMARKETER’s May 2023 forecast, as both the creator economy and B2B ad spending grow. As buyers get younger and B2B marketing becomes increasingly digital, authenticity and experience will matter more in marketing. 

Financial services

In the financial sector, “ finfluencers ” use their social media platform to share videos that cover personal experiences, tips, and advice about investing, budgeting, financial trends, and the economy. 

Finfluencers are capitalizing on a widespread lack of financial literacy. However, the quality of the content is controversial because some creators do not have a professional background in finance. Despite concerns, 60% of investors ages 18 to 35 use social media as a source of investment information, according to a Finra Investor Education Foundation report.  

The generational response 

Younger shoppers are more likely to use social media . About 129.5 million US Gen Zers and millennials will use social media in 2024, per a May 2023 EMARKETER forecast. 

Younger shoppers are also more likely to follow and buy from accounts run by influencers. A Q2 2022 Klarna survey found that over 40% of Gen Zers and millennials worldwide follow influencers , compared with one-quarter of Gen Xers and less than 10% of baby boomers. 

Millennials

Often considered a millennial concept, influencer culture is embraced by this extremely active social media user base. Close to 70 million US millennials will use social media next year, per EMARKETER’s May 2023 forecast. 

Millennials look to trusted influencers for product recommendations, reviews, and as a discovery point for new brands. 

They’re also willing to purchase what they see being promoted by their favorite influencers on social media. Over half (54.1%) of US social network users ages 25 to 34 will make a purchase on a social platform in 2024, per September 2023 EMARKETER data. 

In 2024, 60.7 million US Gen Zers will use social media, according to EMARKETER’s May 2023 forecast. And while that growth is expected to continue through 2027, Gen Z will remain slightly behind millennial users.  

Gen Zers, however, are not as sold on following influencers as their older peers. Less than half (48.6%) use social media to view creator/influencer content, according to a July 2023 EMARKETER survey’s findings. 

Where influencers do have an outsize influence over Gen Z is women’s beauty and wellness. Close to 80% of Gen Z women rank creators as their most trusted source for beauty recommendations, a survey conducted by LTK found. 

Those recommendations are also turning into online and offline sales. Eighty-three percent of Gen Z women shop for creators’ product suggestions online, and 82% shop for those items in-store.  

Influencing by “de-influencing” 

While the majority of influencers promote what to buy, some influencers are turning to platforms like TikTok to tell their followers what not to buy. As of January 2024, #deinfluencing videos on TikTok have roughly 1.3 billion views, up considerably from 208 million in February 2023. 

Seen as a method to combat overconsumption in a tight economy, deinfluencing videos often offer economical alternatives to expensive products or discuss the pitfalls of fast-fashion shopping hauls. 

Creators also use de-influencing videos to share critical commentary to distance themselves from brand controversies and post honest reviews of products that don’t meet expectations. Doing so can help reinforce creator trust through authenticity and transparency. 

Influencer marketing spend 

In 2024, advertisers will spend $5.89 billion on influencer marketing, a 14.7% increase YoY, according to EMARKETER’s July 2023 forecast, which excludes paid media. 

US influencer marketing spend grew more than three times faster than social ad spending in 2023, and it will remain ahead through 2025, according to a July 2023 EMARKETER forecast. 

Social platforms are reliant on creators, not the other way around, as creators’ options extend and include owned channels like blogs, podcasts, and newsletters.

A number of well-known creators, such as YouTuber MrBeast and podcaster Alex Cooper, have launched their own audio and video networks.

Although not every creator has a strong enough brand or following to create a successful media business , the growing success of these ventures should signal to brand marketers and entertainment companies that creators can offer much more than an outlet to generate hype or hawk goods. 

Where influencers post sponsored content

Creators utilize a number of social media platforms. 

To be impactful, influencer content should be engaging, entertaining, and educational, and marketers should work with credible creators who have built trust with their communities. 

US marketers will allocate over $1 billion to sponsored content on each of the top four influencer marketing platforms in 2024, according to EMARKETER’s July 2023 forecast. When it comes to influencer monetization , Instagram posts were the top format that creators worldwide were paid by brands to create in December 2022, per a Later and Mavrck December 2022 survey. Here’s a look at the top social media marketing platforms for influencers.

Instagram remains the top platform for sponsored content, per a June 2023 report from Mavrck. About 98% of US creators share brand content via Instagram feed posts, Instagram Stories, and Instagram Reels, while 69.1% go live on the platform. 

As of June 2023, more creators worldwide report being paid to create Reels (98.0%) compared with TikTok videos (89.6%). 

Creator monetization: In May 2023, Meta began testing a new payout model for Ads on Reels. The monetization program pays creators based on the performance of the Reel, rather than the earnings of the Reel ad, per TechCrunch. 

As TikTok’s popularity rises, brand opportunities for paid content is likely to increase as well. 

Influencer marketing spending growth on TikTok has grown 27.8%, compared with 12.7% on Instagram, according to EMARKETER’s July 2023 forecast.

In 2024, over half of marketers (54.0%) will use TikTok specifically for influencer marketing, with $1.25 billion in US influencer marketing spend going to the platform, per the same EMARKETER forecast.

Creator monetization: If an influencer promotes a brand’s product on TikTok Shop, the social app’s ecommerce tool, they can earn a commission through product sales. For both brands and influencers, TikTok Shop holds a lot of promise and room for growth. In 2024, we expect 40.7 million TikTok users to make a purchase on the app. 

YouTube, like Instagram and TikTok, has a solid hold on influencer marketing. YouTube is the top platform for US adults to follow influencers, according to March 2023 CivicScience data. 

EMARKETER forecasts that in 2024, US marketers will spend $1.07 billion on influencer content for YouTube. 

Similar to Instagram Reels, YouTube has been emphasizing Shorts as a cost-effective option for marketers.

Livestreaming is also leveraged by YouTube to connect influencers—and, ultimately, the brands they partner with—to followers. One-fourth (25.0%) of internet users say they watch creator- or influencer-led livestreams on YouTube, making it the most popular livestreaming app, ahead of TikTok (18.7%), Facebook (17.4%), and Instagram (14.0%), per an April 2023 survey by The Influencer Marketing Factory. 

Creator monetization: YouTube attracts and retains creators in a number of ways. The platform offers a way to connect creator, artist, and brand stores to their YouTube channel, enabling users to more easily find and purchase featured products. YouTube also has affiliate shopping capabilities for creators interested in revenue opportunities. 

Other platforms with influencer marketing potential include Facebook, Twitch, and to a lesser extent, Snapchat and X, the social media company formerly known as Twitter. 

Despite its waning popularity among users, especially youths, Facebook is still expected to see $1.00 billion in influencer marketing spending next year, per an EMARKETER forecast. 

Popular with the esports gaming community, livestreaming app Twitch recently launched a number of features for creators. In July 2023, Twitch announced its Discovery Feed, made up of livestream clips and ad features that help creators share their content from other platforms such as YouTube, TikTok, and Reddit. 

Snap has struggled with ad monetization and commands a fraction of influencer marketing spend compared with larger platforms. In 2023, Snap crossed $40 million in influencer marketing spending, and is expected to see growth of 3.4% in 2024.  

In October 2023, Snap released Creator Collab Campaigns, a suite of tools to facilitate brand-creator partnerships on the platform. Previously, Snap’s primary focus was helping creators monetize directly on the platform through programs like ad revenue sharing. 

X (formerly Twitter)

X saw total US ad revenues decline by 54.9% in 2023 after Elon Musk’s 2022 purchase, according to EMARKETER’s October 2023 forecast, which means it is not an attractive platform for influencer marketing. 

The aforementioned June 2023 Mavrck survey found that 45.9% of US creators shared promoted tweets, while a December 2022 Later and Mavrck survey found that 8.3% of creators worldwide have been paid by a brand to post on X. 

Influencer marketing strategy

An influencer marketing strategy allows a brand to further its reach and tap new audiences, but narrowing down the right creator to work with requires an understanding of the landscape and what type of partnership will best serve the brand’s objectives.  

Influencer marketing hubs: As influencer marketing took off, agencies dedicated to influencers sprang up to help brands manage the opportunity and vice versa. 

Acting as a directory, influencer marketing hubs organize creator profiles by follower count per social platform, audience demographics, location, services offered, the price of partnership, and their interests (e.g., fashion, travel, home improvement, etc.), to take the guesswork out of selecting an influencer to partner with.  

In addition to facilitating brand-creator relationships and identifying new talent, influencer hubs create campaign narratives, determine KPIs, and amplify influencer-led social campaigns, among other responsibilities. 

For creators, working with an influencer marketing agency can be beneficial to scale and manage their own business. As influencer campaigns become more complex, an agency can manage payment, negotiate contracts, handle data analytics and reporting, and oversee other business functions.

Influencer marketing campaigns: An influencer marketing campaign is one that leverages the influence the creator has over their followers. 

When in a paid partnership with a brand, the influencer campaign’s objective is to increase awareness, engagement, and, ultimately, sales. In comparison, an unsponsored campaign, while achieving the same objectives to various degrees, can be seen as more trustworthy and authentic by the influencer’s community.  

Influencer campaigns fall into two categories: 

• User-generated content (UGC) is organic content shared by a social media influencer to promote a brand or product without direct input from the featured brand. The influencer is not paid for UGC posts, and is often not as polished as content created with brand involvement. UGC posts range from product reviews, recommendations, tutorials, and personal experiences with a given good or service.
• Influencer-generated content is a collaboration between a creator and partner brand. These campaigns follow a brand’s creative guidelines—including tone of voice, talking points, aesthetics, and frequency of posts—to produce content fitting for that creator’s audience. As more influencers become trusted partners, brands have loosened the reins, allowing talent to tap into their own creativity for campaigns. Like UGC, influencer-led campaigns are more authentic and engaging, and may prove more effective for the brand involved. 

Influencer posts: When paid for by a brand partner, an influencer post is a type of native advertising. When unpaid with no brand involvement, the post is considered UGC. 

Most commonly seen on social media platforms, formats include Instagram photos with captions, short-form videos on TikTok, and long-form video content posted to YouTube. Influencers can also post written content on blogging platforms like Substack. Influencers will often promote their posts across various platforms to increase reach, engagement, and effectiveness. 

While format is an important aspect of influencer marketing, the post’s creative should be at the forefront. According to EMARKETER’s Influencer Monetization 2023 report, the “three E’s” of influencer marketing should be remembered when creating posts. 

“Regardless of the format, each piece of content should be engaging, entertaining, and educational to drive the most impact,” according to EMARKETER analyst Jasmine Enberg. Brands should also trust creators’ input on creative and format decisions because they know what will resonate best with their audience, Enberg continued.   

Product launches: Influencers are an ideal way for a brand to launch new products. 

When introducing a new product, brands can expand their reach by working with influencers with a similar following as the brand’s target audience. A kitchenware brand, for instance, may work with a popular food influencer to introduce a new range of pots to show off the products, its attributes, and how to buy. 

As influencers become brands in their own right, many have launched their own product lines.

Thanks to an engaged and well-known audience, some influencers are able to develop products that align with the interests of the community they’ve built across their social media footprint. 

For example, beauty vlogger and influencer Huda Kattan launched her own line of false eyelashes in 2013 after her community expressed an interest. Kattan then expanded the line into a full range of cosmetics. Huda Beauty, named after Kattan’s YouTube channel and blog, is now sold D2C and at Sephora. 

Creators with large followings have launched food and beverage products, fitness programs, clothing lines, restaurants, and more to capitalize on their popularity and the value and willingness of their followers to support their businesses. Venturing into their own products also helps creators diversify their revenues and avoid alienating their audiences with too much sponsored content. 

Collaboration: Similar to leveraging an influencer’s help to launch a new product, brands also partner with their stable of creators for product collaborations. 

Often developed as a one-off or limited-edition product, brand-influencer collaborations can be a great source of product innovation. 

In March 2023, Chipotle added two new limited-edition menu items to its quesadilla lineup, the “Keithadilla” and the “Fajita Quesadilla Hack,” which were developed and popularized by TikTok creators Keith Lee and Aleix Frost. 

For some influencers, a brand collaboration may be a jumping-off point to developing their own product lines if the collaborative effort was deemed successful. 

Common influencer marketing KPIs

These metrics are a good way for brands to measure their return on investment for influencer marketing campaigns: 

• Facebook engagement rates (subscribers only): Engagement rate is defined as measurable interactions on social media posts, including likes, comments, favorites, retweets, shares, replies, and reactions, and is calculated based on all these interactions divided by total follower count.  
• Facebook posts per week  
• Instagram affiliate engagement rate : The percentage of an affiliate influencer’s audience that interacts with an affiliate influencer’s campaign or post on Instagram; this includes likes, comments, and shares.
• Instagram affiliate impression per follower rate : The number of affiliate-generated views that a specific post or piece of content received over a specific period of time on Instagram. 
• Instagram affiliate reach : The percentage of followers and viewers from an affiliate influencer’s audience that is exposed to the affiliate influencer’s Instagram. 
• Instagram affiliate view rate : The percentage of an affiliate influencer’s audience that views an affiliate influencers’ campaign or post on Instagram. 
• Instagram engagement rates : Engagement rate is defined as measurable interactions on social media posts, including likes, comments, favorites, retweets, shares, replies, and reactions, and is calculated based on all these interactions divided by total follower count.
• Instagram posts per week
• Social affiliate clicks : The clicks generated by social influencer efforts, including generating traffic or leads (through affiliate links) to the company’s website.
• Social affiliate conversion rate : The percentage of clicks generated by social influencer efforts, including generating traffic or leads (through affiliate links) to the company’s website that also result in completed orders or purchases.
• Social affiliate engagement rate : The percentage of an affiliate influencer’s audience that interacts with an affiliate influencer’s campaign or post on a social media platform; this includes likes, comments, and shares.
• Social affiliate orders : The orders generated by social influencer efforts, including generating traffic or leads (through affiliate links) to the company’s website.
• Social affiliate sales : The sales or revenues generated by social influencer efforts, including generating traffic or leads (through affiliate links) to the company’s website.
• Social affiliate view rate : The percentage of an affiliate influencer’s audience that views an affiliate influencer’s campaign or post on a social media platform.
• TikTok affiliate engagement rate : The percentage of an affiliate influencer’s audience that interacts with an affiliate influencer’s campaign or post on TikTok; this includes likes, comments, and shares.
• TikTok affiliate view rate : The percentage of an affiliate influencer’s audience that views an affiliate influencer’s campaign or post on TikTok.
• X (formerly Twitter) tweets per week

Want more marketing insights?

Sign up for EMARKETER Daily, our free newsletter.

By clicking “Sign Up”, you agree to receive emails from EMARKETER (e.g. FYIs, partner content, webinars, and other offers) and accept our Terms of Service and Privacy Policy . You can opt-out at any time.

Thank you for signing up for our newsletter!

Editor's Picks

Guide to ad agencies and holding companies: What they are and how they support marketing and advertising

Guide to Gen Z: What matters to this generation and what it means for marketers

Guide to Netflix for marketers and advertisers

Industries →, advertising & marketing.

• Social Media
• Content Marketing
• Email Marketing
• Browse All →
• Value-Based Care
• Digital Therapeutics
• Online Pharmacy

Ecommerce & Retail

• Ecommerce Sales
• Retail Sales
• Social Commerce
• Connected Devices
• Artificial Intelligence (AI)

Financial Services

• Wealth Management

More Industries

• Real Estate
• Customer Experience
• Small Business (SMB)

Geographies

• Asia-Pacific
• Central & Eastern Europe
• Latin America
• Middle East & Africa
• North America
• Western Europe
• Data Partnerships

Media Services

• Advertising & Sponsorship Opportunities

Free Content

• Newsletters

Contact Us →

Worldwide hq.

One Liberty Plaza 9th Floor New York, NY 10006 1-800-405-0844

Sales Inquiries

1-800-405-0844 [email protected]

53 episodes

Agency Bytes is a podcast for owners of creative, marketing, and advertising agencies that packs a ton of important agency information on one topic, from one expert into a 25-minute brief. Why 25 minutes? Because who has the attention span for much more these days, and you can squeeze in a listen between meetings with time for a bathroom break or coffee refill before your next meeting. Agency Bytes is brought to you by Steve Guberman from Agency Outsight. Steve is a 20-year agency veteran who works as a business coach for agencies around the country. He coaches owners of branding, marketing, design, and PR agencies to conquer their goals and overcome their challenges. Learn more about Agency Outsight at www.agencyoutsight.com

Agency Bytes Agency Outsight

• 22 MAR 2024

Ep 052 – Tracy Goodheart, The PR Accelerator – Standing Out in the Crowd

Featuring: Tracy Goodheart, The PR Accelerator In this episode, I got to talk to Tracy Goodheart from The PR Accelerator about her journey from being a journalist to helping individuals and brands attract sustained media attention without a publicist. She discusses the evolution of social media and its impact on journalism, emphasizing the importance of earned media over social media for brand credibility. Tracy also highlights the value of creating a messaging system and leveraging ghostwriting to elevate thought leadership within agencies. She advises agency owners to seek external validation and shares her insights on standout strategies in the marketplace. Key Takeaways • Earned media is more valuable than social media for brand credibility.• Creating a messaging system can help streamline communication and ensure consistency.• Ghostwriting can elevate thought leadership within agencies and humanize senior leadership.• Seeking external validation can boost self-confidence and protect against workplace bullying. Chapters 00:00 Introduction and Background03:16 The Evolution of Social Media and Journalism06:46 Leveraging Social Media and Earned Media09:21 Creating a Messaging System10:59 Ghostwriting and Thought Leadership13:30 The Impact of Ghostwriting on Agency Culture20:36 Random Rapid-Fire Questions24:06 Invaluable Business Advice Tracy Samantha Goodheart is the founder of The PR Accelerator, a different kind of PR company. Simply put, she helps individuals and brands nail their messaging and attract positive, sustained media attention without a publicist. She also teaches marketing globally for the University of Chicago and has advised more than 75 brands on their marketing and communications. A journalist by training, Tracy has 15 years of media experience working in every type of newsroom. She began her career as a reporter at TIME Magazine, where she covered the rise of Facebook and developed new methods for reporting breaking news. She also created a blog network for the Chicago Tribune, led global social media strategy for Crain Communications – the publisher of titles like Ad Age, InvestmentNews, and Modern Healthcare – and has trained hundreds of working journalists how to find original story ideas. Tracy has also been a frequent TV commentator and taught graduate journalism school. A Chicago native, she now lives in the Upper Peninsula of Michigan, where she and her husband are renovating a historic general store and starting a lavender farm. Contact Tracy through her website or on LinkedIn.

• 15 MAR 2024

Ep 051 – Debra Rizzi, Rizco Design – WBENC Agency Tips

Featuring: Debra Rizzi, Rizco Design In episode 051, I had the great privilege of speaking with my long-time friend, Debra Rizzi, partner and president of Rizco, a women-owned brand-led marketing agency. We got to discuss the launch and evolution of her agency nearly 25 years ago, the benefits of becoming a certified woman-owned business, and the integration of new tools and processes like EOS. She emphasizes the importance of community involvement and maintaining core values and culture in her agency. She also talks about her day-to-day responsibilities and offers business advice, including the significance of gratitude and self-acknowledgment. Key Takeaways • Launching a business can arise from unexpected circumstances and opportunities.• Becoming a certified woman-owned business can open doors and provide access to funding and resources.• Integrating new tools and processes can enhance efficiency and effectiveness.• Community involvement and maintaining core values and culture are essential for long-term success.• Expressing gratitude and acknowledging personal achievements are important for personal and professional growth. Chapters 00:00 Introduction and Background01:08 The Launch of Rizco05:47 Certification as a Women-Owned Business07:04 Benefits of Women-Owned Business Certification09:34 Integration of New Tools and Processes10:17 Business Development Opportunities12:40 Involvement in the Community20:53 Day-to-Day Responsibilities25:23 Binging and New Tools27:15 Business Advice29:36 Gratitude and Self-Acknowledgment29:59 Closing Remarks Debra Rizzi has over 25 years of experience in developing brand strategies for local, national, and international companies. She is a partner and president of Rizco, a woman-owned, brand-led marketing agency, which she co-founded in 2000. Upon graduating from Bucknell University, Debra worked in the finance department of corporate Lord & Taylor. Later, she managed the creative department of the global public relations firm, Porter Novelli. Debra is a past NJ Biz “40 Under 40” recipient and 2020 NJBIZ’s “50 Best Women in Business” Award. She is a member of many business organizations, currently serves on Wall High School’s Business and Finance Academy’s Advisory Board, and served 8 years on Bucknell University’s Alumni Association Board of Directors. On a personal level, Debra’s partner in life and in business is her husband, Keith, and together they balance the lives of their three daughters, Mia, Marley, and Monroe. Contact Debra through her agency website, Facebook, Instagram, or on Linkedin.

Ep 050 – Ilise Benun, Marketing Mentor – The Simplest Marketing Plan

Featuring: Ilise Benun, Marketing Mentor With the launch of Season Two of Agency Bytes, I'm thrilled to introduce an extraordinary guest for this momentous occasion – Ilise Benun from Marketing Mentor. Ilise is not only a longtime friend but also someone I've admired for decades. In this episode, I had the privilege of delving into Ilise's invaluable insights on her "Simplest Marketing Plan" and how she guides creative professionals to success by helping them focus and identify their market. We discuss the importance of cultivating a deep, focused niche and Ilise lays out actionable steps to achieve this. Ilise believes that building your business should be enjoyable and shares her observations on why many agency owners struggle with their marketing efforts due to being too close to their businesses. We dissect the difference between horizontal and vertical niches, exploring how the latter can significantly boost marketing endeavors. Ilise also emphasizes the significance of sub-niches and provides guidance on expanding into new niches. Furthermore, Ilise outlines her comprehensive program focusing on marketing, money, and mindset, identifying these as key areas of weakness for most creatives. We also challenge the notion that referrals are always beneficial and discuss strategies to overcome complacency in business development. Tune in to uncover some of the invaluable secrets Ilise has accumulated over her more than 30 years as a creative business coach. This episode is packed with actionable insights and wisdom you won't want to miss! For the past 35 years, Ilise Benun has made it her business to teach basic business skills – that is mindset, money, and marketing – to creative professionals and solopreneurs who should have learned them in school but, alas, did not because it’s not taught in school. This has, for years, perpetuated a “starving artist” mentality amongst creative professionals, who are naturally talented and could easily bring their creativity to the business side of their business, if only they knew how. That’s the mission she’s on with all of her work through marketing-mentor.com, including The Simplest Marketing Plan, The Marketing Mentor Podcast, 7 books including The Creative Professional’s Guide to Money, multiple online courses for Creative Live and Domestika.org and much more. Contact Ilise:https://bit.ly/agencyoutsight-qthttps://www.marketing-mentor.com/https://quicktips.marketing-mentor.com/https://www.linkedin.com/in/iliseben

• 28 DEC 2023

Ep 049 – Robert Patin, Creative Agency Success

Featuring: Robert Patin, Creative Agency Success In this episode, I had the privilege of speaking with Robert Patin, an agency expert and coach from Creative Agency Success. Robert's expertise centers on benchmarks and the comprehensive analysis of agency performance, emphasizing measurable metrics. Together, we explore key metrics that every agency should be monitoring. We delve into the absence of essential systems that many "accidental" agency owners overlook at different stages of their business evolution. Robert guides us through activities that can optimize agency operations, aiding in the focus on ideal clients and the reasons behind those choices. During our discussion on agency differentiation, Robert candidly points out that most agencies tend to sound alike, offering valuable insights on how to authentically stand out in a crowded market. Robert Patin is the founder of Creative Agency Success, a consulting firm dedicated to helping creative agencies scale. Robert is known for being a deeply inquisitive and analytical leader with a distinct ability to devise solutions that elevate companies and lifestyles. He is a two-time international best-selling author and is passionate about sharing his next-level strategies so that creative agency leaders will find fulfillment and growth. Contact Robert and download agency freebies here.

• 15 DEC 2023

Ep 048 – Kelly Berry, Brand Therapist

Featuring: Kelly Berry, Brand Therapist In Episode 48, I engaged in an enlightening conversation with Kelly Berrk, a passionate advocate for brand strategy and yoga. We explored Kelly's journey of resetting after experiencing burnout, and the profound impact it had on her creative inspiration following a much-needed period of refocus. Kelly delved into the concept of brand therapy, an integral part of her brand strategy process, influenced by her commitment to self-care and life balance. She shared insights on how these practices serve as tools to connect the dots, helping brands articulate their messages and define their "why" and purpose. Throughout the episode, Kelly emphasized the importance of exploration and connection with others to identify the common thread that ties together brands and relationships. She encouraged listeners to reflect on how they are fostering connections, practicing empathy, and building bridges to create meaningful openings in both professional and personal spheres. Kelly is an entrepreneur, writer, and teacher who is interested in the study of consciousness and introspection. She is a brand strategist working with agencies and brands operating in the health, wellness, and lifestyle markets. Her background leading marketing and communications teams at public relations agencies, tech startups, and lifestyle brands in combination with her functional movement expertise through the disciplines of yoga, Pilates, and bodywork – fun fact she was the lead curator of the yoga program at the U.S. Department of State and teacher to athletes including the Washington Mystics – informs the way in which she approaches developing brand stories and verbal brand identities for her clients. Contact Kelly on her website or Instagram.

Ep 047 – Dan Antonelli, KickCharge Creative

Featuring: Dan Antonelli, KickCharge Creative In this episode, I got to speak with Dan Antonelli, President and Chief Creative Officer of KickCharge Creative. Dan’s agency is by far one of the most deeply niched teams I know of, literally owning the home service branding space and having written the book on it. Dan and I dug into the difference his agency saw once they declared ownership over that space, stopped chasing service-based work that they didn’t find profitable, and rebranded themselves to drink their own cool-aid. Dan experienced a near-death event a few years ago and he spoke about how that was a driving force for him to realign some of his priorities and team structure so they can have more impact and help more people. He also shared how that led to selling some equity in the agency by bringing on a partner this summer and the benefits that will have for KickCharge. Lastly, Dan’s team faces regular copyright infringement, mostly from freelancers stealing their designs and using them as their own. Dan shares how they deal with that, as well as what not to do in instances like that. Dan Antonelli is the President and Chief Creative Officer of KickCharge Creative, an award-winning New Jersey-based branding agency that specializes in helping home service businesses redefine themselves and stand out with disruptive brands. Dan is a nationally recognized speaker and expert on home service branding, with several books on branding to his credit, including Building a Big Small Business Brand and his new Amazon best-selling book, Branded Not Branded: KickCharge Your Home Service Brand. During more than 25 years running his own agency, Dan’s marketing expertise has been featured on MSNBC and in industry magazines including Entrepreneur, SignCraft, HVACR Business, Plumbing & Mechanical, and Contracting Business, among many others. His signature wrap style that integrates disruptive branding has served as a model for superior home service fleet branding throughout the world. With more than 2,000 home service brands under his belt, Dan and his team have overseen the branding of more home service businesses than any other brand agency in the world. Contact Dan on his website, LinkedIn, and Instagram, or grab a copy of his book.

• © Agency Outsight

Top Podcasts In Business

You might also like.

Sample Digital Marketing Agency Business Plan

Writing a business plan is a crucial step in starting a digital marketing agency. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring digital marketing agency owners, having access to a sample digital marketing agency business plan can be especially helpful in providing direction and gaining insight into how to draft their own digital marketing agency business plan.

Download our Ultimate Digital Marketing Agency Business Plan Template

Having a thorough business plan in place is critical for any successful digital marketing agency venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A digital marketing agency business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The digital marketing agency business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your digital marketing agency as Growthink’s Ultimate Digital Marketing Agency Business Plan Template , but it can help you write a digital marketing agency business plan of your own.

Example – ClickPulse Strategies

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to ClickPulse Strategies, our innovative digital marketing agency based in the heart of Washington, DC. We identified a niche in the local market for premium digital marketing services and have positioned ourselves to meet this demand. Our mission is to amplify our clients’ online presence through a comprehensive suite of services including Search Engine Optimization (SEO), Social Media Marketing (SMM), and Pay-Per-Click Advertising (PPC). We are dedicated to providing tailored strategies and personalized attention to our clients, ensuring they achieve their digital marketing goals. With our strategic location in Washington, DC, we have a unique insight into the local market dynamics, which enables us to serve our clients with the understanding and efficiency they deserve.

Our foundation is solidly built on the rich experience of our founder, who previously led a successful digital marketing agency. This experience is crucial to our confidence in steering our clients towards success. Since our inception on January 5, 2024, we have achieved significant milestones including the development of our unique company logo, securing a prime office location, and crafting a distinct company name. These accomplishments, though early in our journey, have laid a strong foundation for our future growth. Our comprehensive range of services, coupled with our commitment to excellence, sets us apart from competitors, making us the preferred choice for businesses seeking to enhance their digital presence.

The Digital Marketing Agency industry in the United States is valued at over $50 billion, reflecting the critical role of digital marketing in today’s business landscape. With a projected compound annual growth rate of 10% over the next five years, the industry is on a steady trajectory of growth, driven by the widespread adoption of digital technologies, the rise of social media, and the emphasis on data-driven marketing strategies. Trends such as personalized marketing campaigns, artificial intelligence, and mobile marketing align well with our services at ClickPulse Strategies. Located in Washington, DC, we are perfectly positioned to leverage these industry trends to offer innovative solutions to businesses aiming to enhance their online visibility and engagement.

At ClickPulse Strategies, we target a diverse clientele including local residents of Washington, DC, small to mid-sized businesses, non-profit organizations, and educational institutions. Our tailored services are designed to meet the unique digital marketing needs of each group, ensuring high engagement and satisfaction. By focusing on the specific goals and audiences of our clients, we provide customized digital marketing solutions that significantly improve their online presence and customer engagement, making digital marketing accessible and effective for everyone.

Our main competitors in the Washington, DC area include Alliance Interactive, Elevation, and Capital Practice Consulting, each offering specialized digital marketing services. Despite their strengths, ClickPulse Strategies differentiates itself through a comprehensive suite of services, expertise in the latest digital trends, and a commitment to delivering measurable results. Our wide array of services, from SEO to PPC and content marketing, enables us to serve a broad range of clients, ensuring their digital marketing needs are met efficiently and effectively. Our approach is holistic and integrated, setting us apart as a leader in the digital marketing domain.

ClickPulse Strategies offers a range of digital marketing services including SEO, SMM, and PPC, tailored to enhance our clients’ online presence. Our pricing is transparent, with services such as SEO ranging from $1,000 to $2,500 per month, SMM from $500 to $1,500 per month, and PPC from $1,000 to $2,000 per month, excluding ad spend. We are committed to delivering measurable results and helping our clients succeed in the competitive digital landscape. To attract customers, we will leverage online marketing strategies including SEO, PPC, social media, content marketing, and email marketing. We will also engage in networking events and workshops in Washington, DC, to showcase our expertise and build personal relationships with potential clients. Our promotional efforts are designed to build a community around our brand, establish ClickPulse Strategies as a thought leader, and drive profitable customer action.

Our operational processes are designed to ensure the smooth running of ClickPulse Strategies and include maintaining constant communication with clients, conducting market research, developing and executing campaigns, analyzing data, and managing finances. We will focus on building a talented team, developing strategic partnerships, and implementing scalable processes. Our milestones for the coming months include launching our business, securing initial client contracts, developing a skilled team, forming partnerships, and achieving operational profitability. These steps will help us build a strong foundation, mitigate startup risks, and position ourselves for sustainable growth and success.

Under the leadership of Harper Lewis, our President, ClickPulse Strategies boasts a management team with a wealth of experience and a proven track record in digital marketing. Lewis’s extensive background in leading a successful digital marketing agency equips him with the expertise necessary to navigate the complexities of the industry. His leadership ensures that we are well-positioned to achieve our long-term business objectives and sustain success in the competitive digital marketing landscape.

Welcome to ClickPulse Strategies, a fresh face in the digital marketing landscape stationed right here in Washington, DC. As a local digital marketing agency, we’ve observed a gap in the market for high-quality services within our area, and we’re here to fill that void. Our mission is to elevate our clients’ online presence, ensuring they stand out in today’s competitive digital world.

At ClickPulse Strategies, our offerings are designed to cover all the bases of digital marketing. Our services include Search Engine Optimization (SEO) to ensure your website ranks high in search results, Social Media Marketing (SMM) to engage and grow your audience on platforms where they spend their time, and Pay-Per-Click Advertising (PPC) to give you an immediate boost in visibility. We understand that each client has unique needs, and we’re prepared to cater to those with our comprehensive range of services.

Our home and heart lie in Washington, DC. This strategic location allows us to serve customers right here in the nation’s capital, providing us with a unique understanding of the local market dynamics. Our proximity to our clients ensures we can offer them the personalized attention and tailored strategies they deserve.

Why are we uniquely qualified to steer your digital marketing efforts towards success? Firstly, our founder brings invaluable experience from previously running a successful digital marketing agency. This experience is the cornerstone upon which ClickPulse Strategies is built. Furthermore, we pride ourselves on offering superior marketing services compared to our competitors. Our wide array of services ensures we can meet the diverse needs of our clients, setting us apart as a versatile and competent agency.

ClickPulse Strategies officially came into existence on January 5, 2024, adopting the legal structure of an S Corporation. Since our inception, we’ve hit several key milestones, including the development of our distinct company logo, the creation of our unique company name, and securing a prime location for our operations. These accomplishments, though early in our journey, lay a solid foundation for our future endeavors.

The Digital Marketing Agency industry in the United States is currently estimated to be worth over $50 billion. This figure reflects the growing importance of digital marketing in reaching and engaging with consumers in today’s digital age. With businesses increasingly shifting their advertising budgets towards online platforms, the demand for digital marketing services continues to rise.

Market research projects that the Digital Marketing Agency industry in the United States is expected to experience steady growth in the coming years. Forecasts suggest that the industry will grow at a compound annual growth rate of 10% over the next five years, reaching a value of over $80 billion by 2025. This growth is driven by factors such as the increasing adoption of digital technologies by businesses, the rise of social media platforms, and the growing importance of data-driven marketing strategies.

Recent trends in the Digital Marketing Agency industry, such as the focus on personalized marketing campaigns, the use of artificial intelligence and machine learning technologies, and the emphasis on mobile marketing, all bode well for ClickPulse Strategies. As a new Digital Marketing Agency serving customers in Washington, DC, ClickPulse Strategies is well-positioned to capitalize on these trends and offer innovative digital marketing solutions to businesses looking to enhance their online presence and reach their target audience effectively.

Below is a description of our target customers and their core needs.

Target Customers

ClickPulse Strategies will target a diverse range of customers, with local residents of Washington, DC being a primary focus. These residents are often looking for reliable and easily accessible digital marketing solutions to promote personal projects, small businesses, or events. ClickPulse Strategies will tailor its services to meet the unique needs of this demographic, ensuring high engagement and satisfaction.

In addition to local residents, ClickPulse Strategies will also serve small to mid-sized businesses operating within the Washington, DC area. These businesses, ranging from startups to more established companies, require sophisticated digital marketing strategies to compete effectively in their respective markets. The agency will offer customized digital marketing solutions that align with their specific business goals and target audience, ensuring a significant improvement in their online presence and customer engagement.

Furthermore, ClickPulse Strategies will target non-profit organizations and educational institutions in Washington, DC. These entities are in constant need of digital marketing services to boost their fundraising campaigns, promote events, and increase overall awareness. The agency will provide specialized services that not only cater to their unique needs but also fit their often limited budgets, making digital marketing accessible and effective for them.

Customer Needs

ClickPulse Strategies recognizes the increasing demand for high-quality digital marketing services among businesses looking to stand out in the competitive Washington, DC market. Clients can expect a comprehensive suite of services tailored to elevate their online presence, from cutting-edge SEO strategies to impactful social media campaigns. This approach ensures that businesses not only reach but engage their target audience effectively, driving growth and increasing visibility.

In addition to providing top-tier digital marketing solutions, ClickPulse Strategies understands the importance of data-driven decision-making. Clients have access to detailed analytics and reporting tools, enabling them to make informed choices about their marketing strategies. This level of insight helps businesses optimize their campaigns for better performance, ensuring a higher return on investment and a deeper understanding of their customer base.

Moreover, ClickPulse Strategies places a significant emphasis on customer service and collaboration. Clients can expect personalized support tailored to their specific needs and goals, ensuring a partnership that feels both empowering and productive. This focus on building strong, communicative relationships helps ensure that each marketing initiative is aligned with the client’s vision, fostering innovation and creativity in every campaign.

ClickPulse Strategies’s competitors include the following companies.

Alliance Interactive offers a comprehensive range of digital marketing services, including website design and development, SEO, content marketing, and brand strategy. Their price points vary depending on the complexity and scope of the project, with custom solutions tailored to meet the needs of each client. They generate revenue by offering these bespoke services, focusing on delivering high-quality, results-driven solutions. Alliance Interactive is headquartered in Washington, DC, and serves clients globally, with a strong presence in the North American market. Their customer segments include small to medium-sized businesses, non-profits, and large enterprises across various industries. A key strength of Alliance Interactive is their emphasis on creating engaging digital experiences that drive user engagement and conversion. However, their bespoke approach might be perceived as a weakness by clients looking for more standardized, cost-effective solutions.

Elevation specializes in web design, digital marketing, and branding services for non-profits and social enterprises. They offer a sliding scale pricing model to accommodate the budget constraints of their target clients, making their services accessible to organizations of different sizes. Elevation’s revenue comes from a mix of project-based work and ongoing support services. Located in Washington, DC, Elevation has carved out a niche for itself by serving non-profits and social enterprises both locally and across the United States. Their key strength lies in their deep understanding of the unique challenges and opportunities within the non-profit sector. However, their niche focus might limit their appeal to a broader range of potential clients outside the non-profit and social enterprise sectors.

Capital Practice Consulting focuses on digital marketing solutions for healthcare providers and medical practices. Their services include SEO, social media marketing, website design, and online reputation management. Pricing is project-based, with options for ongoing management services, allowing for flexibility based on the specific needs of healthcare professionals. They generate revenue through a combination of upfront project fees and recurring management fees. The company operates primarily in the Washington, DC area but serves clients across the United States. Their customer segments include individual healthcare practitioners, small to medium-sized medical practices, and healthcare organizations. Capital Practice Consulting’s strength lies in their specialized knowledge of the healthcare industry, which enables them to provide tailored marketing solutions that adhere to industry regulations. A potential weakness is their industry-specific focus, which might not appeal to clients outside the healthcare sector looking for more generalized digital marketing services.

Competitive Advantages

At ClickPulse Strategies, we pride ourselves on delivering unparalleled marketing services that distinctly set us apart from our competitors. Our proficiency stems from a deep understanding of the dynamic digital landscape and an unwavering commitment to staying ahead of industry trends. This expertise allows us to craft innovative, results-driven strategies tailored to each client’s unique needs. We believe that our ability to generate measurable outcomes, from increased brand visibility to substantial growth in customer engagement and conversion rates, stands as a testament to the superiority of our services. Our team’s dedication to excellence ensures that we not only meet but exceed client expectations, establishing us as a leader in the digital marketing domain.

Moreover, our comprehensive suite of services encompasses everything from search engine optimization and social media marketing to email marketing and content creation. This versatility enables us to serve a diverse range of clients, from startups seeking to establish their online presence to established brands aiming to enhance their digital footprint. Our approach is holistic; we consider every facet of digital marketing to ensure a cohesive and integrated strategy that amplifies our clients’ online influence. By offering such a wide array of services, we eliminate the need for businesses to juggle multiple agencies, providing a streamlined, efficient, and more effective marketing solution. Our commitment to innovation, coupled with our broad service offering, positions ClickPulse Strategies as a premier choice for businesses aiming to achieve unparalleled digital success.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

At ClickPulse Strategies, we specialize in providing comprehensive digital marketing services designed to enhance our clients’ online presence and drive their business growth. Our core offerings encompass Search Engine Optimization (SEO), Social Media Marketing (SMM), and Pay-Per-Click Advertising (PPC), each tailored to meet the unique needs and objectives of our customers.

Our Search Engine Optimization (SEO) services are essential for businesses aiming to increase their visibility in search engine results, attract more website traffic, and improve their online authority. We employ the latest SEO strategies and practices to ensure that our clients’ websites rank highly for relevant keywords and phrases. Clients can expect to invest an average of $1,000 to $2,500 per month for our SEO services, depending on the scope and complexity of their project.

Social Media Marketing (SMM) is another key service we offer, designed to help businesses expand their reach, engage with their audience, and build their brand across various social media platforms. Our team crafts customized social media strategies that align with our clients’ brand values and business goals, ensuring a cohesive and effective online presence. For our SMM services, clients can anticipate an average cost of $500 to $1,500 per month, based on the extent of the campaign and the number of platforms managed.

Pay-Per-Click Advertising (PPC) is a powerful tool for driving targeted traffic to our clients’ websites and generating leads or sales in a cost-effective manner. We manage every aspect of our clients’ PPC campaigns, from keyword research and ad creation to optimization and analytics. Our expertise in PPC ensures that our clients achieve a high return on investment. The average price for our PPC services ranges from $1,000 to $2,000 per month, excluding ad spend, which varies based on the campaign’s scale and objectives.

At ClickPulse Strategies, we pride ourselves on offering transparent pricing and customized digital marketing solutions that cater to the specific needs of our clients. We are dedicated to delivering measurable results and helping our clients succeed in the competitive digital landscape.

Promotions Plan

ClickPulse Strategies embarks on a dynamic journey to attract customers through a comprehensive suite of promotional methods tailored to highlight its expertise in the digital realm. Central to its strategy, online marketing emerges as a pivotal tool, leveraging the vast potential of the internet to reach a broad audience with precision and efficiency. This agency understands the power of digital visibility and will employ a multi-faceted online marketing approach to ensure its message resonates with its target market.

At the heart of its online marketing endeavors, ClickPulse Strategies will harness the capabilities of search engine optimization (SEO) to improve its website’s ranking on search engines like Google. This ensures that when potential clients search for digital marketing services in Washington, DC, ClickPulse Strategies appears prominently in their search results. Additionally, the agency will utilize pay-per-click (PPC) advertising to instantly increase its visibility online. By carefully selecting relevant keywords, ClickPulse Strategies aims to appear at the top of search results, driving targeted traffic to its website efficiently.

Social media marketing will play a crucial role in ClickPulse Strategies’ promotional efforts. By actively engaging with its audience on platforms such as Facebook, Instagram, LinkedIn, and Twitter, the agency will build a community around its brand. This not only enhances brand awareness but also fosters trust and loyalty among potential clients. Content marketing, through the creation and distribution of valuable, relevant, and consistent content, will further establish ClickPulse Strategies as a thought leader in the digital marketing space. This approach will attract and retain a clearly defined audience, ultimately driving profitable customer action.

Email marketing will serve as another vital component of ClickPulse Strategies’ promotional toolkit. By developing personalized email campaigns, the agency will maintain regular contact with its prospects and clients, keeping them informed about the latest digital marketing trends, services, and special offers. This direct line of communication will nurture leads and encourage repeat business, contributing to the agency’s growth.

In addition to these online marketing strategies, ClickPulse Strategies will also explore opportunities in networking events and local workshops. Participating in industry conferences and seminars in Washington, DC, allows the agency to connect with potential clients face-to-face, showcasing its expertise and building personal relationships. Hosting workshops on digital marketing topics will position ClickPulse Strategies as an authority in the field, attracting businesses looking for guidance in navigating the digital landscape.

By integrating these promotional methods into a cohesive strategy, ClickPulse Strategies expects to attract a diverse clientele, ranging from startups to established businesses seeking to enhance their digital presence. With a focus on delivering measurable results and fostering long-term partnerships, ClickPulse Strategies is poised to make a significant impact in the digital marketing arena.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of ClickPulse Strategies, there are several key day-to-day operational processes that we will perform.

• Client Communication: Maintain constant communication with clients to understand their needs, expectations, and to keep them updated on campaign progress. This includes scheduling regular meetings, sending updates, and being available for queries.
• Market Research: Conduct ongoing market research to stay ahead of digital marketing trends, understand the competitive landscape in Washington, DC, and identify new opportunities for client campaigns.
• Campaign Development and Execution: Design and implement digital marketing campaigns tailored to the specific needs of each client. This involves brainstorming creative ideas, selecting appropriate digital platforms, and utilizing SEO, content marketing, social media, and paid advertising strategies.
• Data Analysis and Reporting: Collect and analyze data from ongoing campaigns to measure their effectiveness. Use analytics tools to track performance indicators such as website traffic, conversion rates, and engagement levels. Prepare comprehensive reports to share with clients.
• Financial Management: Manage the agency’s finances, including budgeting for campaigns, invoicing clients, and ensuring that expenses stay within budget. Monitor cash flow and make adjustments as necessary to maintain financial health.
• Team Collaboration: Facilitate collaboration among team members to ensure that all projects are progressing smoothly. Hold regular team meetings to discuss campaign strategies, delegate tasks, and address any challenges.
• Professional Development: Encourage continuous learning and professional growth within the team. Stay updated with the latest digital marketing tools and techniques, and invest in training and development opportunities for staff.
• Quality Control: Implement quality control measures to ensure that all work produced meets the high standards expected by clients. This includes reviewing campaign materials, monitoring ongoing campaigns for issues, and making necessary adjustments to strategies.
• Client Acquisition and Retention: Work on expanding the client base through networking, marketing efforts, and referrals. Also, focus on retaining existing clients by delivering exceptional service and demonstrating the value of ongoing investment in digital marketing.
• Compliance and Legal Considerations: Ensure that all marketing campaigns comply with legal requirements and industry standards, including data protection laws and advertising regulations. Stay informed about changes in legislation that could affect digital marketing strategies.

ClickPulse Strategies expects to complete the following milestones in the coming months in order to ensure its success:

• Launch our Digital Marketing Agency: Officially opening our doors for business is the first critical milestone. This involves setting up the legal structure of the business, creating a brand identity, developing a company website, and establishing our presence on social media platforms.
• Secure Initial Client Contracts: Signing on a certain number of clients, for instance, 5 to 10, depending on the project size, within the first three months. This validates our business model and provides initial revenue and case studies for future marketing efforts.
• Build a Talented Team: Recruiting and hiring a skilled team with expertise in various digital marketing disciplines (e.g., SEO, PPC, content marketing, social media) within the first six months. This includes both full-time employees and freelancers or contractors as needed.
• Develop Strategic Partnerships: Forming partnerships with non-competing businesses in the digital and broader marketing ecosystem within the first nine months. These partnerships can provide referral business and enhance service offerings.
• Implement Scalable Processes and Tools: Establishing efficient, scalable processes and implementing necessary digital tools for project management, client reporting, and other operations within the first year. This foundation is critical for handling growth without sacrificing service quality.
• Achieve $15,000/month in Revenue: Reaching this revenue milestone within the first 12 to 18 months. This involves not only acquiring new clients but also retaining existing clients and possibly increasing the services provided to them.
• Expand Service Offerings: Based on market demand and the team’s expertise, gradually introducing additional services or specialized offerings within the first 18 months. This could include branching out into emerging digital marketing channels or technologies.
• Establish a Strong Brand Reputation: Earning positive client testimonials, case studies, and industry recognition within the first 24 months. This could involve winning awards, securing speaking engagements for team members at industry events, or earning certifications that demonstrate expertise.
• Reach Operational Profitability: Ensuring that monthly revenue exceeds operational costs by the end of the second year. This includes costs such as salaries, marketing, tools, and office space if applicable.
• Develop a Client Retention Strategy: Implementing a client retention program by the end of the second year to maintain a steady revenue stream. This could include loyalty discounts, referral programs, or regular strategy review meetings to ensure client satisfaction and identify upselling opportunities. These milestones are designed to build a solid foundation for ClickPulse Strategies, mitigate risks associated with starting a new business, and position the company for sustainable growth and success.

ClickPulse Strategies management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Harper Lewis, President

With a proven track record of achievement, Harper Lewis brings a wealth of experience to ClickPulse Strategies. Having previously helmed a Digital Marketing Agency, Lewis’s leadership skills are well-tested and proven in the realm of digital marketing. This background has endowed him with a deep understanding of the digital landscape, including the nuances of SEO, content marketing, and social media strategies. His expertise not only lies in crafting compelling digital marketing strategies but also in his ability to steer a team towards achieving long-term business objectives. Lewis’s experience is a cornerstone for ClickPulse Strategies, ensuring the company is well-positioned to navigate the complexities of the digital marketing industry and achieve sustained success.

To achieve our growth goals, ClickPulse Strategies requires $234,000 in funding. This investment will cover capital investments such as location buildout, furniture, and equipment, along with non-capital investments including working capital, initial rent, staff salaries, marketing, supplies, and insurance. This funding is crucial for establishing our operations, building our team, and launching our marketing efforts, setting the stage for our success in the digital marketing industry.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Digital Marketing Agency Business Plan Example PDF

Download our Digital Marketing Agency Business Plan PDF here. This is a free digital marketing agency business plan example to help you get started on your own digital marketing agency plan.  

How to Finish Your Digital Marketing Agency Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your digital marketing agency business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

The Moscow metro will remain without advertising

• Vladimir Chernikov
• Gyula Kogan
• Konstantin Gorokhov
• Government of Moscow
• State Unitary Enterprise "Moscow Metro"

Related materials

• One day in Moscow feeds for the whole year Business | 22.08.2016
• Why Moscow sinks: how reconstruction of streets clogged drains Society | 26.07.2016
• Arkady Volozh's son gets rid of real estate development business Business | 17.02.2016
• Moscow earns nothing on paid parking Officials | 25.01.2016
• RBC investigation: who earns on the construction of the Moscow metro Business | 27.10.2015
• Rucompromat review, 16-23 October: tea drinking, cups smashing Reviews | 26.10.2015
• RBC investigation: who earns on the reconstruction of Moscow Business | 20.10.2015
• RBC investigation: who earns on paid parking in Moscow Business | 31.12.2014
• Advertisement in the metro drove a wedge between the Moscow officials Officials | 26.11.2014
• State order for Artemy Lebedev Society | 26.08.2014
• Who and what makes money on provision of urban amenities in Moscow Business | 03.07.2014
• Profitable dump: billionaires and state-owned companies joined the struggle for the wastes market Business | 12.02.2014

How To Write an Advertising Agency Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for advertising agency businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every advertising agency owner should include in their business plan.

Download the Digital Marketing Agency Business Plan Template

What is an Advertising Agency Business Plan?

An advertising agency business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Advertising Agency Business Plan?

An advertising agency business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Advertising Agency Business Plan

The following are the key components of a successful advertising agency business plan:

Executive Summary

The executive summary of an advertising agency business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your advertising agency
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your advertising agency , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your advertising agency, mention this.

You will also include information about your chosen advertising agency business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of an advertising agency business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the advertising agency industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of an advertising agency may include small businesses, non-profit organizations, or large corporations.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or advertising agency services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your advertising agency may have:

• Proprietary technology
• Lower cost structure
• Stronger relationships with customers, suppliers, or distributors
• Better quality product or service
• Faster delivery times
• Greater customization options

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your advertising agency via public speaking engagements or by writing articles for publications your target customers read.

Operations Plan

This part of your advertising agency business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an advertising agency include reaching $X in sales. Other examples include adding X number of new clients or launching a new product or service.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific advertising agency industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Advertising Agency

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Advertising Agency

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup advertising agency .

Sample Cash Flow Statement for a Startup Advertising Agency

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your advertising agency . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

If you are seeking funding from investors or lenders, it is especially important to have a well-written business plan that demonstrates the expertise and experience of your management team, as well as your company’s potential for financial success. By taking the time to write a detailed and comprehensive business plan, you will give your advertising agency the best chance for success.  

Finish Your Advertising Agency Business Plan in 1 Day!

Wish there was a faster, easier way to finish your advertising agency business plan?

With our Ultimate Digital Marketing Agency Business Plan Template you can finish your plan in just 8 hours or less!