Are you about starting an outdoor advertising agency? If YES, here’s a complete sample outdoor advertising agency business plan template & feasibility report you can use for FREE to get started.
Okay, so we have considered all the requirements for starting an outdoor advertising agency. We have analyzed and drafted a sample outdoor advertising agency marketing plan backed up by actionable guerrilla marketing ideas for outdoor advertising agencies. So let’s proceed to the business planning section.
Table of Content
- 1 Why Start an Outdoor Advertising Agency?
- 2 Outdoor Advertising Agency Business Plan – Executive Summary
- 3 Outdoor Advertising Agency Business Plan – SWOT Analysis
- 4 Outdoor Advertising Agency Business Plan – MARKET ANALYSIS
- 5 Outdoor Advertising Agency Business Plan – SALES AND MARKETING STRATEGY
- 6 Outdoor Advertising Agency Business Plan – Publicity and Advertising Strategy
- 7 Outdoor Advertising Agency Business Plan – Financial Projections and Costing
- 8 OUTDOOR ADVERTISING BUSINESS GROWTH: Sustainability and Expansion Strategy
Why Start an Outdoor Advertising Agency?
If you are a public relation specialist and are looking for a business to delve into, then one of your options may be to start a marketing research business. The fact that everyone in business has a product or service to sell makes this line of business viable and profitable.
The truth is that this industry is highly profitable because every business would want to increase sales. Your level of profitability is dependent on your ability to come up with workable solutions to advertising cum publicity challenges for various businesses.
If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your products amongst other areas.
Below is a sample outdoor advertising agency business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Outdoor Advertising Agency Business Plan Template
- Industry Overview
The billboard & outdoor advertising industry is composed of companies that create and design advertising materials for public display, including printed, painted or electronic displays. Billboard & outdoor advertising agency may place their displays on billboards or panels as well as on or within transit vehicles, shopping malls, retail stores and other display structures or sites.
If you are a close observer of happenings in the billboard & outdoor advertising industry, you will notice that over the five years to 2018, revenue for the industry increased. Industry operators generate revenue through leasing of advertisement space on display faces, including billboards, public transit and street furniture. The industry experiences stiff competition from various advertising media.
Nonetheless, billboards remain an attractive form of advertising because of their ability to reach a mass market, a feat that is becoming more difficult as consumer markets fragment. Advertising clients are increasingly requesting the measurement of impression and exposure. This has been detrimental to the industry because this reach is easily deliverable through the various quantifiable metrics that online and social media advertisements offer.
The billboard and outdoor advertising industry is in the mature phase of its life cycle and luckily for the industry, the advent of digital media has provided an opportunity for the industry to explore and experience vibrant growth. Of course, the industry is becoming more concentrated, as seen by a few large global firms dominating the market and gaining huge market share of the available market.
Statistics has it that in the United States of America alone, there are about 13,103 licensed and registered billboard and outdoor advertising agencies responsible for employing about 37,300 employees and the industry rakes in a whooping sum of $9 billion annually with an annual growth rate projected at 0.6 percent. It is important to state that the establishments with lion shares of the available market in this industry are CBS Outdoor, Clear Channel Outdoor Holdings and Lamar Advertising.
A recent report published by IBISWorld shows that the Billboard and Outdoor Advertising industry is composed of companies that design advertising materials for public display, including printed, painted or electronic displays. The report shows that operators may place displays on billboards or panels as well as on or within transit vehicles, shopping malls, retail stores and other display structures or sites.
In the report, it was stated that over the five years to 2018, industry revenue has increased marginally at an annualized rate of 0.6 percent to $8.6 billion. In 2018 alone, industry revenue is expected to grow to 1.9 percent. During the period, industry revenue has been supported by strong growth in total advertising expenditure, consumer spending and corporate profit.
Over and above, billboard and outdoor advertising agencies cannot be phased out despite the change in advertising approaches and the emergence of new media as it is easier for advertising agencies to leverage on modern technology to reach out to their target market. As a matter of fact, it is cost effective and far reaching for them to make use of social media platforms to carry out some of their advertising campaigns.
Outdoor Advertising Agency Business Plan – Executive Summary
Lincoln Denzel™ Outdoor Advertising Agency, Inc. is a U.S based billboard and outdoor advertising agency that will be located in New York City. We have been able to secure a standard office facility in a central business district in Inglewood.
We set to compete in the highly competitive billboard and outdoor advertising industry not only in the United States market, but also in the global market because our clientele base will not be restricted to just businesses and organizations in the United States but in the international market.
Lincoln Denzel™ Outdoor Advertising Agency will offer robust advertising services to both corporate organizations and individuals. Our core services will revolve around creating advertising campaigns on billboards, alternative and other leased displays, street furniture and other urban fixture displays and transit displays. Our business goal is to become one of the leading advertising agencies in the United States of America with high profile clients scattered all around the globe.
Our workers are going to be selected from a pool of talented and highly creative advertising and media experts in and around New York City and also from any part of the world as the business grows. We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectation of the company and to compete with other advertising agencies such as CBS Outdoor, Clear Channel Outdoor Holdings and Lamar Advertising in the United States.
At Lincoln Denzel™ Outdoor Advertising Agency our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s business needs precisely and completely.
Lincoln Denzel™ Outdoor Advertising Agency, Inc. is founded by Lincoln Denzel. Lincoln Denzel hails from Brooklyn, New York, has B.A. in Communications at Northern Michigan University; M.S. degree in Computer Science at the University of Wisconsin-Milwaukee; and MBA from the University of Chicago Booth School of Business.
- Our Product and Services Offerings
Lincoln Denzel™ Outdoor Advertising Agency was established with the aim of maximizing profits in the industry. We will work hard to ensure that Lincoln Denzel™ Outdoor Advertising Agency, Inc. do not just work for clients in the United States of America, but also for clients in other parts of the world. Our products and services offerings are listed below;
- Aerial advertising
- Billboard-display advertising
- Bus, taxicab and subway-car advertising
- Display advertising
- Indoor-display advertising
- Outdoor-display advertising
- Store-display advertising
- Transit advertising
Our Vision Statement
Our vision is to establish a standard billboard and outdoor advertising agency whose services and brand will not only be accepted in the United States of America, but also in other parts of the world.
- Our Mission Statement
Our mission is to provide professional and result oriented billboard and outdoor advertising services and other related advisory and consulting services that will assist businesses in promoting their brands and reaching out to a wide range of potential customers all over the globe. We want to build a billboard and outdoor advertising agency that can favorably compete with other leading brands in the industry.
- Our Business Structure
Lincoln Denzel™ Outdoor Advertising Agency would start up small in New York City, but hope to grow big in order to compete favorably with leading advertising agencies in the United State. We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hiring the best hands within our area of operation.
We will ensure that we hire people that are qualified, hardworking, and creative, result driven, customer centric and are ready to work to help us build a prosperous business. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company.
In view of the above, Lincoln Denzel™ Outdoor Advertising Agency, Inc. has decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Creative Director
- Billboard and Outdoor Advertising Specialist
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Web Designer cum Graphic Artist
- Client Service Executive
Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Serves as project manager of the organization; works directly with employees
- Responsible for designing advertising concepts and winning business proposals for the organization
- In charge of copy writing and laying out chronological advertisement plans
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Ensures that the organization work in line with international best practices.
Billboard and Outdoor Advertising Specialist
- Accountable for handling media planning and representation
- Responsible for creating advertising campaigns
- Responsible for disseminating advertising campaigns through available outdoor mediums
- Responsible for handling core digital services such as aerial advertising, billboard-display advertising, bus, taxicab and subway-car advertising, display advertising, indoor-display advertising, outdoor-display advertising, store-display advertising and transit advertising
- Handles other related media and advertising advisory and consulting services
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of daily office activities
Sales and Marketing Manager
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding sales
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Lincoln Denzel™ Outdoor Advertising Agency.
- Serves as internal auditor for Lincoln Denzel™ Outdoor Advertising Agency.
Web cum Graphic Designers
- Liaises with clients to determine their requirement and budget
- Responsible for Optimizing Website Functionality for owners of existing websites
- Responsible for Search Engine Optimization Services and Code Writing
- Responsible for developing concepts, graphics and layouts for product illustrations, company logos, and websites
- Responsible for managing client proposals from typesetting through to design, print and production
- Responsible for preparing drafts or material based on an agreement brief.
Client Service Executive
- Welcomes clients and potential clients by greeting them in person, online or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the creative director in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries.
Outdoor Advertising Agency Business Plan – SWOT Analysis
Lincoln Denzel™ Outdoor Advertising Agency engaged the services of a professional in the area of business consulting and structuring to assist our organization in building a well – structured billboard and outdoor advertising agency that can favorably compete in the highly competitive industry in the United States.
We know that if we get things right before starting our billboard and outdoor advertising agency, we will not have to struggle to attract loyal clients. We hired the services of Dr. Collins Lamar, a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us.
Here is a preview of the result we got from the SWOT analysis that was conducted on behalf of Lincoln Denzel™ Outdoor Advertising Agency, Inc.;
Our core strength lies in the power of our team; our workforce. We have a team of creative, result driven and highly proficient advertising cum branding experts, a team with excellent qualifications and experience in various niche areas in the industry. Aside from the synergy that exists in our carefully selected advertising cum branding experts, our services will be measurable, result driven and guided by best practices in the industry.
As a new billboard and outdoor advertising agency in New York City, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business especially via main stream media (TV, Radio and Newspapers et al) the way we would want to.
The opportunities available in the billboard and outdoor advertising industry is massive considering the number of individuals, businesses, government agencies and corporate organizations that want to reach out to their target market and increase their market shares, we are ready to take advantage of any opportunity that is available in the industry.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of billboard and outdoor advertising agency in same location where our target market exists and who may want to adopt same business model like us.
Outdoor Advertising Agency Business Plan – MARKET ANALYSIS
- Market Trends
In recent time, individual behavior and demographics are being consolidated to convey more grounded measurements to the advertiser. Real time traffic, social media, and even camera analytics now provide accurate audience metrics for billboard sites. Digital metrics make it easier for media planners to consider and integrate their advertising campaigns.
You will notice that within the last 10 years, digital has completely transformed offline media – print has moved online, TV is now “on-demand”, and radio channels now distribute content via podcasts. Meanwhile, the billboard remains in the real world – only more data-driven and connected to other digital media.
Technology keeps evolving and along with that, the trends in the outdoor advertising will also change. The latest trend is the moving wall display. It can catch a lot of people’s attention which can bring more conversion to your business.
Lastly, the advertising agencies industry will continue to evolve due to the advancement of computer technology and software applications et al.
- Our Target Market
We are certain that there is a wide range of both corporate, government and individual clients who cannot successfully run their businesses without the services of standard billboard and outdoor advertising agencies; a company that can help them reach out to their target market and effectively promote their image.
In view of that, we have created strategies that will enable us reach out to various organizations who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that we meet and surpass the expectations of our clients.
Below is a list of the people and organizations we will market our services to;
- Banks, Insurance Companies and other related Financial Institutions
- Blue Chips Companies
- Corporate Organizations
- Manufacturers and Distributors
- Real Estate Owners, Developers, and Contractors
- Research and Development Companies
- The Government (Public Sector)
- Schools (High Schools, Colleges and Universities)
- Celebrities, Politicians, Public Figures and Public Speakers
- Sport Organizations
- Religious Organizations
- Political Parties
- Printing Press (Publishing Houses) and Authors
- Aspiring celebrities
- Entrepreneurs and Startups
Our Competitive Advantage
Surviving in the business world as outdoor advertising agency requires more than your expertise but also how to network with key people that matters.
We are quite aware that to be highly competitive in the advertising industry means that you are not only expected to be able to deliver excellent services, but you must be result driven and able to meet set targets. No one would want to hire your services if you don’t always meet up with your obligations.
Part of our competitive advantages are ability to negotiate successfully with regulators, ability to provide our services in diverse locations and our ability to attract local patronage. So also, we have a team of creative, result driven and highly proficient advertising cum branding experts, a team with excellent qualifications and experience various niche areas in the advertising agencies industry.
Aside from the synergy that exist in our carefully selected digital marketing experts, our services will be measurable, result driven and guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.
Outdoor Advertising Agency Business Plan – SALES AND MARKETING STRATEGY
We are mindful of the fact that there are stiffer competitions in the advertising industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing. Our sales and marketing team will be recruited based on their vast experience in the advertising industry and they will be trained on a regular basis so as to be well equipped to meet their targets.
Our corporate goal is to grow Lincoln Denzel™ Outdoor Advertising Agency, Inc. to become one of the leading outdoor advertising agency brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with.
Lincoln Denzel™ Outdoor Advertising Agency is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our outdoor advertising agency by sending introductory letters alongside our brochure to individuals, corporate organizations, government agencies, non – profits, religious organizations and key stakeholders.
- Promptness in bidding for outdoor advertising contracts from the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV and radio stations.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
Lincoln Denzel™ Outdoor Advertising Agency is established with the aim of maximizing profits in the industry and we are going to do all it takes to meet and surpass the expectations of our clients. Lincoln Denzel™ Outdoor Advertising Agency will generate income by offering the following services;
- Advertising services
- Public relations services
- Media planning & representation
- Creating advertising campaigns
- Other related media and advertising advisory and consulting services
Lincoln Denzel™ Outdoor Advertising Agency is well positioned to take on the available market in the industry and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation.
We have been able to examine the industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Lincoln Denzel™ Outdoor Advertising Agency. It is based on the location of our business and of course the wide range of services we offer and our target market;
- First Fiscal Year: $200,000
- Second Fiscal Year: $500,000
- Third Fiscal Year: $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
At Lincoln Denzel™ Outdoor Advertising Agency, we will keep the prices of our services below the average market rate by keeping our overhead low and by collecting payment in advance from organizations that would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.
- Payment Options
The payment policy adopted by Lincoln Denzel™ Outdoor Advertising Agency, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Lincoln Denzel™ Outdoor Advertising Agency, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our clients make payment for our services without any stress on their part.
Outdoor Advertising Agency Business Plan – Publicity and Advertising Strategy
We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the hearts of our target market. Below are the platforms we intend to leverage on to promote and advertise Lincoln Denzel™ Outdoor Advertising Agency, Inc.;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our billboards in strategic locations all around New York City
- Engage in roadshows from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- List Lincoln Denzel™ Outdoor Advertising Agency, Inc. in local directories / yellow pages
- Advertise Lincoln Denzel™ Outdoor Advertising Agency, Inc. in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo
Outdoor Advertising Agency Business Plan – Financial Projections and Costing
It is a known fact that in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a standard billboard and outdoor advertising agency; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup Lincoln Denzel™ Outdoor Advertising Agency, Inc. in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Leasing / renting an office space in a good location in New York City – New York that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
- The cost for furnishing and equipping the office (computers, printers, projectors, markers, server / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
- The amount required to purchase the needed software applications – $3,500
- Launching an official Website will cost – $500
- The amount need to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
- Miscellaneous – $5000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set up a medium scale but standard billboard and outdoor advertising agency in the United States of America.
Generating Startup Capital for Lincoln Denzel™ Outdoor Advertising Agency, Inc.
Lincoln Denzel™ Outdoor Advertising Agency owned, financed and managed by Lincoln Denzel. He has decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank.
N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
OUTDOOR ADVERTISING BUSINESS GROWTH: Sustainability and Expansion Strategy
It is an established fact that the future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Lincoln Denzel™ Outdoor Advertising Agency, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while. Lincoln Denzel™ Outdoor Advertising Agency will make sure that the right foundation, structures and standard operating processes are put in place to ensure that our staff welfare are well taken of.
Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility in a good location in New York City – New York: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
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