Introduction.
In this article, we will discuss an innovative marketing agency service business idea for marketing professionals. We will evaluate how marketing agency service business can be started and what investment is required. We will also see the revenue model and demand side of the business. Enjoy reading.
Marketers use different media channels to communicate to the targeted segment. In today’s Marcom space celebrities and famous personalities occupy a large portion of the traditional and digital advertisement. We see that large and medium-sized companies hire famous sports and film personalities in their market communication strategies by endorsement or through a contract. This service represents a very big market with a high price tag. Generally, the entire process appears to be very cumbersome for an agency that acts as a mediator between the model and advertiser.
Problem Statement.
Endorsing or getting into an advertising contract with a personality who has a high degree of recognition in the targeted market may not be economically feasible for small and micro enterprises. So, SMEs always look for an ideal alternative that they think can help them meet business objectives.
Concept.
Here, the business idea is to deliver those alternatives to the SMEs who are looking for a marketing agency service. The character artist and potential sports talents with their growing trend of recognition is the alternative here, and their count is much higher than the stars. This marketing agency service business is to bring a quick and affordable solution to the SME.
Example.
A tea company that does sell in the regional market wants to create awareness of their medicinal tea and achieve a revenue goal by expanding its market share, they want a person for the advertisement for their products who is famous for physical fitness and health consciousness, but they are not in an economical position to hire or endorse any star personality hence wants to look for the best alternatives who can fit in their budget. Here the marketing agency service business comes in picture.
Check home based business ideas here.
Check online business ideas here.
Check small business ideas here.
Demand.
The contribution of SMEs to Indian GDP is 29%, which is expected to grow manifold within a few decades. This is almost equal to the top 1000 large companies’ contribution. The opportunity here is the count of SMEs is increasing more rapidly than the large entities and they will surpass them very soon in contribution to GDP.
Revenue Model for the marketing agency service business.
- The business will list models that are affordable, or models can list themselves basis the pricing criteria fixed by the business. [Free]
- The business will execute an e-agreement with each transaction. [Chargeable]
- The business will deploy technology that will enable a contracted model to execute the advertisement on its own, like making a video with a pre-decided dialogue and outfit. [Chargeable to company and the Model]
- The business may list other options also where outdoor shooting can be done with appropriate charges.
Investment required for the marketing agency service business.
Developing the application for all platforms will cost Rs 5 Lakhs. Creation of team, putting up an office, deploying manpower, marketing, and working capital for 6 months fixed cost needs Rs 20 Lakhs to Rs 25 Lakhs. So, the total budget will come to approximately Rs 30 Lakhs.
Scale-up.
Best of luck!
