How to Start an Advertising Agency Business In 2024?


If you are a businessman or wanted to become one, then you must have to know, that how crucial is advertising for your business. Even if you are not in any business, then also you can see advertisements covering all over the world. Starting an advertising agency business is a great and profitable choice in current market situation for new entrepreneurs.

You can see advertisements everywhere, whether you are surfing on the web or walking in the city with your friends. Advertising your business is a process due to which you can provide additional benefits or promote to your business. 

If made properly then only one advertisement can increase your sales up-to a large extent. 

Investing in advertising is a great choice by any business minded person. Businessmen spend billions of dollars only to advertise their product. 

Most of the big businessmen likes to spend their money on advertising companies, marketing agencies, affiliate marketers, etc. Advertisement agency has different names such as marketing agency, media agency, PR agency, AD agency, website marketing company etc.

So don’t get confused after hearing all these different names, all these have a one and the same meaning. Starting a full time marketing agency and providing people advertising services, will results you in dealing with great sorts of profits. 

The investment you put in this business to start, doesn’t take too much time to multiply itself to a large extent. So let’s see all the figures so that you can conclude, whether it is a right business for you or not.

What is an Advertising Agency?

An advertising agency is the one due to which any type of impact (positive or negative) makes a difference in the sales of advertiser’s product or services by showing advertisement. 

Advertising agency is responsible for the effectiveness of the advertisements made by them to the customers. They are the one who holds the future of any brand, they can make it to the top or even they can break it.

Advertisements are very powerful, they have the power to motivate people to buy a product or to create controversy among them. 

The investment you put in this business in starting doesn’t take too much time to multiply itself. Advertising agencies create ads, design them, animate them, write their scripts and tries to make them as eye catchy and creative as they can be. 

What Are The Jobs Performed In Advertising Agencies?

In the agency, different employees take care of a project handed to them. Every employee has a very own specific role in the project. 

Some of the major employees evolved in building an AD agency are:- 

1) The consultant:-  He/she conducts the project and work with both the agency and the customers. 

He/she creates the marketing and media plans.

He/she helps the business in achieving business objectives. 

2) The art director and The graphic designer:-  They are responsible for designing all the advertising materials. Such as the logo or the website, pages and many other creative things.      

They also can have a job to make posts in social media platforms to promote their customer’s product. 

Advertising Agency

3) The copywriter:- They are the ones who write for websites, for some creative advertising agencies, for marketing material, etc. 

If the agency has created advertisements, then the scripts are written by copywriters.  The tagline below product and small sentences in advertisements are written by them. 

4) The web developer:-  Web developers programs the website create them and maintain them. They are responsible for all the technical aspects in websites. Sometimes they can write content for their websites. 

A good cooperation among the team leads to an effective brand promotion in front of your customers. 

What are the things in which your advertising agency business model  depends on? 

Some of the things which dominate advertising agency are:- 

1) If you have started advertising firm in partnership, then it is necessary to have a good partner.

 Partners are the ones who are responsible for the goodwill of your firm in the market. 

2) Personal relations (PR) are very important with your clients. 

Your customers must be loyal to you and also have to be loyal to them.  Ad agency is not different from a PR agency.

3) The more you learn, the more you earn. You have to use your E-resources efficiently and effectively. You have to train your employees to work more with less resources. 

4) The type of technology you are using plays a great role in growth of your business. 

If you are using traditional ways of advertising, then you will be on loss in future. Upgrading with future is very important. 

5) Cost structure plays a very vital role in this business model. If you charge more from your customers then the potential customers will search another alternative. Which may be your competiting agency, firm or company. 

How much it costs to start an advertising agency?

Costing always depends upon the level of your advertising agency. If you’re starting an ad company then the funds required are huge. 

All the cost required in starting ad agency is used in different things. You have to rent an office to do business meetings with your clients. You need to buy computers and have to provide them good internet connection as well. And you also have to buy furniture for your employees. 

Timely you will have to pay salary also to your employees. This expense is compulsory to do and also it is the greatest investment by any employer. You have to buy printers for printing work. 

Usually advertising agencies have their websites, so you have to buy domain for your website as well as a secure hosting. 

How much can you earn from an advertising agency?

Profits and earnings are the things that keeps the interest of the businessmen in business.

Profits are also important for growth and expansion for your business. Your earnings depends upon the fees you charge from companies. 

In starting the earnings also depends upon the client you have, which type of advertisement they wanted to be shown. You can earn a good amount of money in starting after deducting all the expenses.

What is the difference between AD agency and PR agency?

AD agencies perform all kind of marketing works, such as advertising in social media platforms, traditional marketing, designing the advertisement, writing the script, etc. 

Whereas, PR (Personal Relations) has a motive to build and keep intact the positive image of a brand among people. But both of them helps in building a brand in the market. 

How to start an advertising agency

Step by step guide:- 

1) Plan your business

Before starting you must have to plan your business. 

It means deciding that you want to start an advertising agency or an advertising firm. 

Forming agency requires less investments and building a firm with a partner serves as a mutual benefit for both of you. You can also start a marketing company under which advertising company falls. 

 Forming AD company requires a lot of paper work and huge investments. 

2) Build a legal entity

You can make your agency or full service marketing agency a legal entity by its registration. 

Registration provides your agency several benefits offered by government. 

Usually big companies also try to contact those who have a registered firm, agency or company. 

3) Registration for taxes

Registering your business for taxes provides your business to offer your services in another states also. You don’t have to pay tax by your own, you just have to collect it from your customers and then submit it to government offices. 

GST number is necessary to take otherwise you may loose your clients. 

4) Obtain necessary licenses and permits

Getting necessary legal permissions and licenses helps you avoid heavy fines later. 

You have to get ISO number to build trust in your clients.

Ad Agency

You have the monopoly in the market when you develop new strategies and apply them in the business. You also have to build a good customer base which can help you in catching big fishes of the market.

You can register your business under MSME to get help at both financial and social level from government. 


5) Hire employees

You can learn various skills required in this business but still, you cannot perform all the activities by yourself alone, you need a team to execute the project. Even you will have to hire employees according to their skills and qualifications. You have to hire people who are creative in advertising and can have new creative ideas to advertise more effectively. 

6) Develop marketing strategies and customer base

You have to develop the marketing strategies for your business by researching on your market area. Identifying your potential customers, attracting them to your agency, eliminating your business competition.

7) Advertise your agency

Now when you have formed your marketing agency, the next thing you need is customers, 

and you have to tell people about your agency so that they have come to know about your advertising services. 

You can take this as your first project to work on. You can try all of your creativity in marketing of your brand. 

When your potential customers see your work in your advertisements and marketing, they will automatically get attracted towards your agency marketing. When they approach you online,  your online consultant is there for them, who will provide them consultancy service for your brand. 

How much can you charge your customers?

You are not selling any of your product to your customers, you are providing them advertising services. So, you can charge them hourly rate you or your employees work, or else you can charge them some percent of commission of the sales of their products, due to marketing and advertising by your agency.  

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