How to start a Advertising Agency Business in UK USA (Business Plan)

Advertising Agency Business

Do you have these questions in your mind?

  • Is a advertising agency business profitable in UK USA?
  • How much money can you make in advertising agency business in UK USA?
  • Which advertising agency business is most profitable in UK USA?
  • How to start a advertising agency business in UK USA?

In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.

Table of Contents

What is Advertising agency business?

The advertising agency business is a service industry that provides businesses and organizations with a range of advertising and marketing services. These services typically include developing advertising strategies, creating ad campaigns, designing and producing ad content, and placing ads in various media outlets. The primary goal of an advertising agency is to help their clients increase brand awareness, attract new customers, and ultimately drive sales.

The advertising agency business operates by charging clients for their services, either on a project-by-project basis or through retainer agreements. Advertising agencies may also earn commissions from media outlets for placing ads on behalf of their clients. To be successful in the advertising agency business, agencies must have a deep understanding of their clients’ products or services, their target audience, and the competitive landscape in which they operate. Additionally, agencies must stay up-to-date with the latest advertising trends and technologies to remain competitive in the industry.

According to IBISWorld, the advertising agency industry in the United States has a market size of $56 billion as of 2021, and it's expected to continue growing in the coming years.

Advertising Agency Business

Types of advertising agency business Models

There are several types of advertising agency business models, each with its own unique characteristics and benefits. Here are some of the most common types:


Full-Service Agencies: These agencies offer a wide range of advertising services, including market research, creative development, media planning and buying, and campaign execution. They are capable of handling all aspects of a client’s advertising needs.


Creative Boutiques: These agencies specialize in creative development and provide clients with innovative and unique advertising concepts. They typically work with larger agencies or media buying firms to execute campaigns.


Media Buying Agencies: These agencies specialize in media planning and buying, and work with clients to determine the most effective media channels for their advertising campaigns. They typically have relationships with media outlets and can negotiate better rates for their clients.


Digital Agencies: These agencies specialize in digital marketing and advertising, including search engine optimization (SEO), social media advertising, and website design and development.


In-House Agencies: These agencies are owned and operated by a company, and are responsible for handling all of the company’s advertising needs. They have a deep understanding of the company’s brand and target audience, and can create advertising campaigns that align with the company’s overall objectives.

Each of these advertising agency business models has its own advantages and disadvantages, and the right one for a particular business will depend on the specific needs and goals of the client.

Pros and Cons of a advertising agency business

Here are some pros and cons of starting a Advertising Agency business:


  • Creative Freedom
  • Variety of Clients
  • Potential for High Earnings
  • Fast-paced Environment


  • Long Hours
  • Pressure to Perform
  • Competitive Environment
  • High Stress Levels

Advertising Agency Business Investment

The investment required to start an advertising agency business can vary widely depending on factors such as the agency’s size, location, and services offered. Here are some of the key expenses to consider:

  • Office Space: Renting or buying office space is often the biggest expense for an advertising agency business. The cost will depend on the location and size of the space.
  • Equipment: Advertising agencies typically require computers, software, and other office equipment to create and manage campaigns.
  • Staffing: Salaries and benefits for employees, such as copywriters, art directors, account managers, and administrative staff, are a significant ongoing expense for an advertising agency business.
  • Marketing and Advertising: To attract clients, advertising agencies may need to invest in marketing and advertising campaigns of their own.
  • Professional Services: Advertising agencies may need to hire outside consultants or contractors for specialized services such as legal or accounting.
  • Other Expenses: Other expenses to consider include insurance, utilities, and office supplies.


Overall, the investment required to start an advertising agency business can range from tens of thousands of dollars to hundreds of thousands or more. It’s important to create a detailed business plan and budget to ensure that you have the necessary funds to start and run the business.

Advertising Agency Business

How much will you earn in advertising agency business?

The potential earnings for an advertising agency business can vary widely depending on several factors such as the agency’s size, location, reputation, and the services it offers.

According to industry sources, the average profit margin for an advertising agency ranges from 10% to 25%. This means that for every $100 in revenue, an advertising agency can expect to make a profit of $10 to $25.

However, it’s important to note that advertising agencies can be highly profitable for successful businesses, with some agencies generating millions of dollars in revenue each year. The earnings for an advertising agency can also depend on the fee structure they offer to clients. For example, some agencies charge a flat fee for their services, while others charge a percentage of the media spend or a commission on ad placements.

Overall, the earnings for an advertising agency business can be significant, but they require hard work, dedication, and a commitment to delivering high-quality work to clients.

Looking for LOGO Design + Branding?

iMedia Ad Agency is an award wining Logo Design Company run by Sushant & Vijaya, offering professional logo designs for Start-ups / SMEs / Home Businesses Owners.


  • Full ownership of final Logo remains with the client
  • 100% original logo artwork
  • No internet copy-paste work
  • Original sketch supplied
  • Super High resolution Vector file formats
  • Free 1 month logo backup support
  • Telephone, chat, skype & email support

Get all Business Launch Solutions under one roof Logo, Corporate Identity, Invite, Stationary, Packaging, Broucher, Product Display, Web Design, Business Blog, Shopify Store, Startup Pitch Deck, Google SEO, Product Reviews, Business Articles, and Social Media Management.

Advertising Agency Business

Checklist of Equipment Needed for Advertising Agency Business

An advertising agency is a business that creates and manages advertising campaigns for clients. The primary role of an advertising agency is to help clients develop and execute effective advertising strategies that help them reach their target audience and achieve their marketing objectives.


Advertising agencies offer a wide range of services to clients, including:


1. Market research and analysis

2. Brand development and management

3. Creative development and execution

4. Media planning and buying

5. Digital marketing and social media management

6. Public relations and event planning

7. Analytics and performance reporting


Some advertising agencies specialize in specific industries or types of advertising, such as digital or social media marketing, while others offer a full range of services to clients.

Advertising Agency Business

Types of Staff Needed to Start Advertising Agency Business

Starting an advertising agency business requires a team of skilled professionals with different areas of expertise. The size and structure of the team will depend on the size of the agency and the services offered. Here are some of the key roles that may be needed in an advertising agency:


1. Creative Director: Responsible for overseeing the agency’s creative output, developing concepts, and managing the creative team.


2. Copywriter: Creates written content for advertising campaigns, including taglines, headlines, and body copy.


3. Art Director: Develops and directs the visual elements of advertising campaigns, including the layout, typography, and imagery.


4. Graphic Designer: Designs and creates visual elements of advertising campaigns, such as logos, illustrations, and graphics.


5. Account Executive: Acts as a liaison between the agency and the client, manages client relationships, and ensures that projects are completed on time and within budget.


6. Media Planner: Develops media strategies and plans for advertising campaigns, including selecting the appropriate media channels and negotiating media buys.


7. Digital Marketing Specialist: Develops and implements digital marketing strategies, including social media, search engine marketing, and email marketing.


8. Analytics Manager: Analyzes data from advertising campaigns to measure performance and provide insights for optimizing future campaigns.


9. Production Manager: Oversees the production process for advertising campaigns, ensuring that deadlines are met and quality standards are maintained.


In addition to these key roles, an advertising agency may also need administrative staff, such as a receptionist, office manager, or bookkeeper.

Advertising Agency Business

List of services in Advertising Agency Business 

Advertising agency businesses offer a wide range of services to clients, depending on their specific needs and objectives. Some of the common services offered by advertising agencies include:

  • Strategic Planning: Developing a comprehensive advertising strategy that aligns with the client’s overall marketing objectives and target audience.
  • Creative Services: Developing creative concepts and executing advertising campaigns across various media channels, including print, television, radio, outdoor, digital, and social media.
  • Media Planning and Buying: Identifying the most effective media channels to reach the target audience and negotiating media buys to ensure the best possible value for the client.
  • Branding and Identity: Developing and executing a brand strategy that includes creating logos, taglines, and visual identity systems to differentiate the client’s brand from competitors.
  • Digital Marketing: Developing and executing digital marketing campaigns, including search engine optimization, pay-per-click advertising, social media marketing, and email marketing.
  • Public Relations: Developing and executing PR campaigns to manage the client’s reputation and build brand awareness through media coverage and other communications.
  • Event Marketing: Planning and executing promotional events, such as product launches, trade shows, and experiential marketing campaigns.
  • Market Research and Analytics: Conducting market research to gain insights into the target audience and measuring the effectiveness of advertising campaigns using data analytics.
  • Video and Motion Graphics: Creating video content, motion graphics, and animations for advertising campaigns, social media, and other digital channels.
  • Photography and Graphic Design: Creating high-quality visual content, including photography, illustrations, and graphic design for use in advertising campaigns and other marketing materials.
Advertising Agency Business

Service Rate Card of Advertising Agency Business


The service rates charged by advertising agencies vary depending on several factors, including the scope of the project, the type of services required, the experience and expertise of the agency, and the location of the agency. However, here is a general breakdown of the service rates for some common advertising agency services:

Strategic Planning: This service is usually billed on a project basis, and rates can range from $5,000 to $25,000 or more, depending on the complexity of the project.

Creative Services: The rates for creative services such as copywriting and design can range from $100 to $500 per hour, or a flat fee based on the scope of the project.

Media Planning and Buying: Advertising agencies charge a commission on the media spend, typically around 15% of the total media cost.

Branding and Identity: The rates for branding and identity services can range from $10,000 to $50,000 or more, depending on the scope of the project and the level of expertise required.

Digital Marketing: Digital marketing services are usually priced on a project basis, with rates ranging from $5,000 to $50,000 or more, depending on the complexity of the campaign.

Public Relations: Public relations services are typically billed on a project basis, with rates ranging from $5,000 to $25,000 or more, depending on the scope of the project.

Event Marketing: The rates for event marketing services can range from $10,000 to $100,000 or more, depending on the size and complexity of the event.

Market Research and Analytics: Rates for market research and analytics services can range from $100 to $500 per hour, or a flat fee based on the scope of the project.

Video and Motion Graphics: Rates for video and motion graphics services can range from $5,000 to $50,000 or more, depending on the complexity of the project.

Photography and Graphic Design: The rates for photography and graphic design services can range from $100 to $500 per hour, or a flat fee based on the scope of the project.

It’s important to note that these are general ranges, and rates may vary based on the specific needs and requirements of the client and the project.


Here are some steps to consider when starting an advertising agency business:
1. Conduct Market Research
2. Define Your Niche
3. Develop Your Business Plan
4. Register Your Business
5. Hire Staff
6. Develop Your Service Offerings
7. Establish Your Brand
8. Create Your Portfolio
9. Network and Build Relationships
10. Set Your Pricing and Billing Structure

Advertising Agency Business

Licenses in a Advertising Agency Business 

The specific licenses and permits required for an advertising agency business may vary depending on your location and the specific services you offer. However, some common licenses and permits may include:


Business License: Most states and local governments require businesses to obtain a business license to operate legally.


Sales Tax Permit: If your advertising agency sells products or services, you may need to obtain a sales tax permit from your state or local government.


Zoning Permit: If you plan to operate your advertising agency from a physical location, you may need to obtain a zoning permit to ensure that your business is operating in a designated commercial zone.


Professional Licenses: Some states may require professional licenses for certain advertising services, such as public relations or media buying.


It’s important to research the specific licensing requirements in your area and obtain all necessary permits and licenses before starting your advertising agency business. This can help ensure that your business is operating legally and avoid any potential fines or penalties.

Free Learn Blogging Book

Launch your Money Blog

Build a 24/7 money machine that you can create and grow from anywhere in the world you are…

Advertising Agency Business

Health and Safety Measures in the Advertising Agency Business

Health and safety measures are important in any workplace, including an advertising agency business. Here are some steps you can take to ensure the health and safety of your employees:


1. Develop a health and safety policy: Create a policy that outlines your commitment to providing a safe and healthy work environment. This policy should be communicated to all employees and should include information on how to report safety hazards or concerns.


2. Conduct regular safety training: Provide safety training for all employees, especially those who will be working with hazardous materials or equipment. This training should cover topics such as proper use of equipment, emergency procedures, and safety protocols.


3. Provide personal protective equipment (PPE): Depending on the nature of your business, you may need to provide PPE, such as safety glasses, gloves, or earplugs. Make sure that PPE is readily available and that employees are trained on how to use it properly.


4. Regularly inspect and maintain equipment: Make sure that all equipment is regularly inspected and maintained to prevent malfunctions or accidents. This includes everything from computers to production equipment.


5. Create a clean and organized workspace: A clean and organized workspace can help prevent accidents and injuries. Make sure that walkways are clear and free of clutter, and that workspaces are well-lit and well-ventilated.


By implementing these health and safety measures, you can help ensure that your advertising agency business is a safe and healthy place to work.

Advertising Agency Business


In conclusion, starting an advertising agency business can be a profitable and rewarding venture for those who are passionate about marketing and creative services. With the right business model, staff, and services, an advertising agency can help businesses of all sizes achieve their marketing goals and grow their customer base. However, it is important to carefully consider the potential risks and challenges, such as the need for significant investment, intense competition, and the need to stay up-to-date with the latest marketing trends and technologies. By carefully planning and executing your business strategy, investing in your staff and equipment, and providing high-quality services, you can build a successful and thriving advertising agency business.

Want to Save Time in your Business Launch?

  • How to Create a Business Plan
  • What is Market Research, USP, Niche & Positioning
  • How to find a suitable name for your business
  • How to create your brand image (Logo + Branding)
  • How to Register Your Business
  • How to Register for Taxes
  • How to get Licenses / Permits
  • How to Open a Business Bank Account
  • How to Get Business Insurance
  • Which Payment Processing Terminal (POS) to buy
  • How to get Funds for your Business
  • How to do Sales & Marketing – Offline & Online
  • Why have a Website / Blog / Social Media
  • How to build & train your Dream Team
  • How to provide Excellent Customer Service
  • Buying an Old Business Vs Franchisee Vs Own Brand from Scratch

Handpicked inspirational Youtube videos for you

How to Start a Vending Machine Business in 2023 (step by step) – YT Channel ‘Everything DSK’

How to Start a Vending Machine Business, Cost, Tips, How Much You Make – YT Channel ‘The Business Guy

A. No, you don’t need any special skills or certifications to operate a vending machine business. However, having basic business and customer service skills can be beneficial.

A. The amount of profit you can make from a vending machine business depends on various factors, including the type of machines, location, and operating costs. However, on average, vending machine owners can earn between $5,000 to $30,000 per year in profits.

A. The frequency of restocking depends on the location and the popularity of the products in the vending machine. Generally, vending machines need to be restocked at least once a week, but some high-traffic locations may require restocking more frequently.

A. Yes, in both the USA and UK, vending machine operators are required to have certain permits and licenses, depending on the location and the type of products being sold. It is important to research and comply with local regulations before starting a vending machine business.

Notify of
Inline Feedbacks
View all comments

Hey! Sushant & Vijaya Here

Welcome to

We created this Business Blog to guide small businesses, solopreneurs, mompreneurs, freelancers, and online business owners in launching their businesses offline and online.

We work with clients all around the world on:
  • Logo
  • Branding
  • Business Blog
  • Corporate Identity
  • Sales Presentation
  • Product Packaging
  • Shopify Store
  • Google SEO
  • Digital Marketing
  • Affiliate Marketing and more…

If you need our Help? We help you save time to Grow your Business.

Lets Connect!
Sushant & Vijaya
Latest Articles
Blog Categories