Question

Topic: Advertising/PR

New Online Ad Agency Has Questions!

Posted by web765 on 25 Points
We are in the process of starting an online advertising agency that will develop/create our own ads. We would also like to hire a sales team to approach the advertisers and publishers for our ads.
How do we approach the advertisers, and how much do we charge? We are contemplating on designing the ads for free. Just not sure on how to charge these Fortune 500 + companies. As well how or who pays the publishers for their "cut?"
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RESPONSES

  • Posted by CarolBlaha on Member
    You seem to be asking very basic questions, and/or have limited knowledge of this industry to be planning on a client list of Fortune companies.

    You need to do at the very least a SWOT, and determine what others charge for similar service and your specific niche. Fortune co's already have agencies in place, you will have to determine what will motivate them to switch to you. In this case, I would also secret shop the competitors. That will give you very good info on exactly how they approach the market.
  • Posted by Gary Bloomer on Member
    Who is "we"?

    What experience do "we" have in creating and placing advertising, online or elsewhere?

    Before "we" hire anyone in sales, "we" need to write a business plan. Then a marketing plan.
  • Posted by web765 on Author
    "We" are several web designers/developers and graphic designers who want to get this rolling! Business pan, marketing plan you say! It is in the works, as well we like to plan ahead and get answers before starting or completing anything.
    You say, "similar service" - we have come out with a "new" (so we think) form of display advertising for the net and mobile devices. We have not seen this type of adv and at this juncture, are researching to see if it can be patented.
    "Basic questions" - yes just want basic answers!
  • Posted by Jay Hamilton-Roth on Accepted
    You need to prove whatever value you offer, and the best way to do this is find a client (ideally, multiple clients) and create a white paper on the effectiveness of your advertising. With some data, you can start to make a good case to enlist new clients, and figure what it would be worth to them.
  • Posted by web765 on Author
    Thank you Jay for the response! I never did think of doing this, but a whitepaper would help tremendously. We can explain as to why our ads are different from the others and how effective they can be, plus all these other "good points!" Great idea!
  • Posted by Gary Bloomer on Member
    You are "several web designers/developers and graphic designers" OK. Good. Now we're getting somewhere.

    The business and marketing plans you've got "in the works"? Whip 'em out, finish 'em and then deploy them. They're your guides. Would you build a house without first drawing up some plans and deciding on where the doors and windows will go?

    No, you would not.

    Finish your plans, then consult an architect ... which in this case would be someone with a background in marketing.

    Web, development, and graphic design skills are all great skills to have. However, you need someone on board who knows about marketing.

    Not selling. Marketing.

    Someone who knows how to create: attention, attraction, positioning, conditioning, value, following, interest, desire, bonding, and trust.

    All these things (and a few other things) create engagement.

  • Posted by web765 on Author
    Thank you for the responses, but, without questions and answers - one cannot complete a marketing/business plan! Although your responses do make a point - not one has answered the actual questions at hand!
    And, yes, your points are well taken. Reason for the questions is BECAUSE we need answers to complete the plans!
    As for the "in the works" response - "Rome was not built in one day!" Did Dwane Johnson ("The Rock" wrestler) stop making movies because he was a wrestler? Did Mark Walberg (Marky Mark - the one hit wonder rapper) stop making movies because he was a one hit rapper? NO, they followed their dream!
    Does someone start on blueprints without doing research, more research, and asking questions? Whew, I feel much better now unloading!
    So, again, can somebody answer the questions mentioned on the original post? Thx in advance.
  • Posted by Gary Bloomer on Member
    How do we approach the advertisers?

    Call them, e-mail them, get in front of them. Show what you'll do to add value to their bottom line.

    How much do we charge?

    Sliding scales based on industry linked $ per hour fees might be a good place to begin.

    As well how or who pays the publishers for their "cut?"
    You do. Bill accordingly but not too high.

    You're not building Rome. You're not "The Rock", and you're not Mark Walberg ... and you might ... just might want to stow the snippy attitude. To appear on the forum of the Internet's top marketing site, with no business plan, and expect the wind the stars and the moon for 25 points ... you've got a few things to learn.

    If you appear in the office of a top marketing person and you come across in the way you've come across here, your chances of getting a "yes" may not be too high.

    Good luck to you.
  • Posted by web765 on Author
    "snippy attitude" no, just persistant!
    "25 points" - well, you know there are numerous forums out there where you don't need 25 points!
    "few things to learn" - sounds condensending! But, I did get a better clarification on my questions!
  • Posted by Gary Bloomer on Member
    Trying to help you dude ... trying to help you.
  • Posted by Ghost Writer on Member
    *buys Gary a beer, pats him on shoulder*
  • Posted by mgoodman on Moderator
    As self-serving as this might sound, you probably would get more than your money's worth if you hired someone who has "been there and done that" and let them sit down with you to answer all the questions you can think of. If you split the cost among yourselves, it won't be that much, and the value of the information will be ... well, priceless.

    There are a couple of reports that you probably ought to read. The first is "The 3 Pitfalls That Kill Most New Businesses ... and How to Avoid Them." The second is one you'll need once you have some idea of where you're going: "Do-It-Yourself Market Research – Done Easily, Done Right."

    They are both available as PDF downloads at: https://bit.ly/O8PjDz
  • Posted by web765 on Author
    "*buys Gary a beer, pats him on shoulder*" - nope, looks like mgoodmans response deserves a six pack!

    Thx for the advice. We are, looking for a "consultant" at this point! Somebody that can hold our hand and lead us to the right direction. Anybody interested? But, I will check these resources. Thx.



  • Posted by Gary Bloomer on Member
    The "resources" come from Michael Goodman's website, so you'll be paying him. I wish you, your consultant (whoever that person is), and your Fortune 500 clients (whoever they might be) the best of luck.

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