The Nika Company’s Advertising Business Plan

Cite this

Investment in advertising remains consistently high even during the crisis. Entrepreneurs are looking for new segments, promoting online products — and are pleased to use the services of advertising agencies. The development of the advertising market follows the general trends in the economy: periods of growth are accompanied by active advertising campaigns and crises – lull. At the same time, there is no complete stagnation in the advertising market. For example, during the quarantine period due to coronavirus infection, delivery services and online services were actively advertised.

Resume of an Advertising Agency

The business plan for an advertising agency does not imply the mandatory purchase of equipment at the start: all production processes can be transferred to specialized companies and printing houses. To summarize all the obtained indicators and results on the analysis of market needs, a business plan is an integral part of implementing the idea. Based on the business plan, the entrepreneur should anticipate what expenses will have to be incurred and what level of profit can be obtained at the same time. If the level of profit received does not correspond to the plan, it is required to look for weaknesses in the business. In this paper, the business plan of an advertising agency will be considered.

Advertising is designed to motivate a specific audience, breaking down potential buyers according to their lifestyle, nationality, and other parameters. It is aimed at attracting the attention of the advertised product, forming and maintaining interest in it, and promoting it on the market. There are certain theoretical developments in the field of advertising agency activity (Keegan et al., 2017). All of them are directed to establishing an effective advertising business system. Advertising agencies must adhere to the basic postulates of theoretical developments to make a profit and stay in the market (Nizami, 2021). There is a universal scheme of an advertising agency, which consists of four departments: creative, research, commercial departments, and the department of advertising media. All their activities aim to achieve their goals in the adequate production of an advertising campaign that would satisfy the necessary needs.

The Nika Company advertising agency, located in Los Angeles, will plan and conduct advertising campaigns that optimally match customers’ budgets. The agency’s customers are various reliable manufacturers who consider it necessary to promote their goods on the American market. The advertising agency is multidisciplinary since The Nika Company can meet the needs of a large-scale nature. The owners do not have their production base, but they have a broad base of advertising agencies – manufacturers of printing, souvenirs, and other products necessary for conducting an advertising campaign.

The owners have chosen a limited liability company as their legal status. This form is easy to implement and convenient in its structure. In the event of bankruptcy and under concluded contracts, each founder is responsible for the amount of their contribution. According to the form of ownership, this limited liability company has a personal form, and the owners are the general director and the director. The activity of an advertising agency is creativity, so its success, first of all, depends on the qualifications, imagination, and skill of its employees (Keegan et al., 2017). That is why, when creating an advertising agency, the quality of designers of advertising sales managers becomes decisive.

Firstly, designers are needed, one is responsible for creating an advertising product, and the other is engaged in layout and other routine work. Secondly, the idea creator that develops the concepts of innovative products is required. In addition, several managers who will sell advertising, lead existing customers and look for new ones are required. The director will carry out the general management of the agency. It makes sense to outsource accounting to a specialized company, as it will be cheaper and more reliable. Only professionally executed advertising is effective, so it should not be intrusive and monotonous (Malefyt, 2020). By advertising a product, the Nika Company tries to create a dialogue that the manufacturer starts, and the consumer supports by buying or not buying goods on the market. The goal of our project is to provide consumers of goods and advertisers with high-quality advertising and show what real advertising should be.

Advertising Agency Price Offers

The advertising agency’s value propositions are diverse, as they include advertising on billboards, firewalls, LED screens, advertising fences, TV, radio, and the Internet. Depending on the ad’s size, duration, and location, the price will be set. For example, placing ads on 3×4 billboards will cost 600 to 1000 dollars. Advertising on firewalls will cost a little more – the cost on a 5×20 surface will cost customers 1,200 to 1,600 dollars. The prices of advertising on 5×4 LED screens vary from 500 to 700 dollars, and the cheapest option is advertising in the city format – from 200 to 500 dollars. The price of advertising on TV and radio strongly depends on the duration of the video, the number of its rentals per day, and the number of days of video rentals.

The services of this Internet advertising agency represent the most excellent variety, as they include contextual advertising, website promotion, and modernization, advertising on social networks, and media advertising. The Nika Company’s contextual advertising services have several tariffs suitable for different companies and niches. For example, the Turbo tariff is ideal for extensive advertising campaigns, online stores, complex, highly competitive niches, and includes the possible tools. The price for this tariff corresponds to a wide range of services provided – from 500 dollars.

Media advertising is primarily aimed at promoting a new product on the market, advertising the brand, creating specific associations with it, and strengthening the company’s image. The described advertising agency provides several tariffs for display advertising. One of them, the Standard, is designed for emotional perception by the audience. It also forms an attitude to the brand and helps create the necessary associations of users with the company or product. This tariff will cost the interested audience a price of 400 dollars. In addition, this advertising agency will also regularly offer special discounts for all customers. The agency owners know that some one-time or government contracts are consistently profitable. Therefore, the Nika Company will comply with the pricing model expected from contractors or organizations offering such agreements.

Without a doubt, the digital marketing agencies industry has benefited from the rapid transition from traditional print advertising to digital advertising. As more and more consumers generate website traffic using smartphones and tablets, companies acquire digital advertising services to increase brand awareness across multiple screens and platforms (Laudon & Traver, 2020). Over the next five years, the industry will continue to grow as more effective advertising tools, software applications, and technology platforms that measure consumer demographics develop.

The growing trend that makes it easier for people to spend more time online, especially on social networking sites, is a significant incentive in the revenue generated by digital marketing agencies. It has changed the way organizations interact with customers, as a substantial percentage of consumer interaction and profiling is now done through online and social media platforms with much greater visibility.

Since digital marketing depends on constantly evolving and changing technologies, the same functions should be expected from digital marketing developments and strategies. This part attempts to qualify or separate notable highlights that exist and are in use at the time of publication. Another important factor worth mentioning in this industry is that the target market expands. People and organizations now see the need to have an official website and attract the services of digital marketing experts (Laudon & Traver, 2020). The general trend in the digital marketing agency industry is that most digital marketing firms no longer settle for customers at the location where their physical office is located.

Marketing Strategy

The sales and marketing team will be recruited based on their extensive experience in the digital marketing agency industry. They will be trained regularly to meet their goals and the overall business goal of the Nika Company. The corporate purpose of this advertising agency is to develop the Nika Company and become one of the leading marketing brands in the United States of America that specialize in online advertising. Therefore, a strategy was outlined for the next three years, which will help to take advantage of the existing market.

  • The promptness of submitting applications for participation in digital marketing contracts from the government and other cooperating organizations.
  • The active and constant business advertising in relevant business magazines, newspapers, TV stations, and radio stations.
  • The attending relevant international and local exhibitions, seminars, and business exhibitions.
  • The creating different packages for different categories of clients, working with their budgets, and at the same time providing excellent design and high-quality services.
  • The using a direct marketing approach.
  • Install an advertising agency bulletin board at strategic locations throughout Los Angeles.
  • The formation of a team of highly qualified specialists who enjoy their work.
  • Communication with corporate organizations and non-profit and government agencies to sell agency services.

Critical Risks and Challenges

All risks in the newly opened company can be divided into two categories: internal and external. External risks include increased competition in this field of activity, an overabundance of advertising and advertising media in the city, and a discrepancy between customer preference and the advertised service or product. Internal risks include a high level of risk of ordering a non-professional contractor, a high level of advertising and business promotion costs that may not be justified, as well as a high level of capitalization of investments. To cope with these risks requires the dedication of all business participants, self-confidence, a reliable source of income that will cover the first expenses, and practical and prudent planning. The central aspect for any start-up business is the reputation that comes from satisfied customers. Therefore, it is essential to approach the work responsibly and efficiently, taking into account the wishes of the customer and the actual capabilities of the performers.


Keegan, B. J., Rowley, J., & Tonge, J. (2017). Marketing agency–client relationships: towards a research agenda. European Journal of Marketing. Web.

Laudon, K. & Traver, C. (2020). E-Commerce 2019: Business. Technology. Society. Pearson.

Malefyt, T. D. (2020). Models, metaphors and client relations: the negotiated meanings of advertising. In Advertising cultures (pp. 139-163). Routledge.

Nizami, N. V. (2021). The application model of organizational and production innovations to improve the efficiency of an advertising agency. Economic and Social Development: Book of Proceedings, 612-619.

Cite this paper

Select style


BusinessEssay. (2022, December 28). The Nika Company's Advertising Business Plan. Retrieved from


BusinessEssay. (2022, December 28). The Nika Company's Advertising Business Plan.

Work Cited

"The Nika Company's Advertising Business Plan." BusinessEssay, 28 Dec. 2022,


BusinessEssay. (2022) 'The Nika Company's Advertising Business Plan'. 28 December.


BusinessEssay. 2022. "The Nika Company's Advertising Business Plan." December 28, 2022.

1. BusinessEssay. "The Nika Company's Advertising Business Plan." December 28, 2022.


BusinessEssay. "The Nika Company's Advertising Business Plan." December 28, 2022.