Ad agencies on subscription can help your business grow much faster with their specialized knowledge in advertising and a business model that helps you save a lot of money. In this article, we will dive deep into how subscription-based ad agencies like Presnt can help you grow.
It is becoming increasingly difficult to scale your business, especially with limited funds. The competition keeps getting higher, there is uncertainty in the global community, and not to mention a looming economic downturn.
According to Brimco, there are estimated 334 million companies worldwide. With modern online tools, pretty much anyone can start a business and sell to people all around the world. Tools and platforms like Stripe, Shopify, and Amazon gave people opportunities to start their online stores at a low cost or collect payments, reducing the barrier to entry. That means that the competition is already high, and it only keeps getting higher.
The COVID-19 pandemic brought the world to a halt. It caused a lot of businesses to temporarily close, and people to isolate at home, and it also brought the global supply chain to a standstill. Afterward, lots of businesses were struggling to find workers as they were able to reopen.
All of this, combined with the turbulent global situation has led to a looming recession. This made it much more difficult for already struggling businesses to find additional funding. Companies are forced to work with tight budgets and need to extract every bit of value from it. It is more important than ever to optimize processes and spending to scale your business despite the uncertain environment.
This is exactly where ad agencies on subscription come to help.
Advertising agencies have been around for a long time. The first ad agency was established in Philadelphia in the 19th century. At that time, they were brokers for companies helping them secure ad spots in newspapers.
Ad agency’s main task is to help the company establish its brand presence, build awareness, promote its product, and of course drive sales. There are traditional ad agencies that do so by using offline methods of promotion, and there are also digital ad agencies that work with digital advertising.
Traditionally ad agencies have charged their clients retainers, and then an hourly rate. Some agencies opt to bill their project on a per-project basis, depending on the scope of work. Some however charge a percentage of the brand’s media spend.
Advertising agencies on subscription seek to change that. Instead of charging per project or per hour, they choose to bill their clients one fixed monthly fee for a predetermined package of services. This allows companies to budget much easier because of the predictable agency cost. It also gives them much more transparency. Brands also know exactly what to expect for their money, and it offers them flexibility since they can upgrade, downgrade, or cancel their plan based on their needs. Also, paying a flat monthly fee can often be much cheaper than paying per hour or per project.
There are a lot of challenges businesses face in the modern market. Growing competition is forcing brands to keep up with the latest trends and find new and innovative ways to stand out. It is becoming increasingly difficult to break through the noise.
With the growing competition also come rising advertising costs. The global advertising spend is projected to reach $646 billion by 2024. With spending increasing globally, it is normal that businesses find it more difficult and expensive to reach their target audience. It is also reasonable that they are seeing an increase in Customer Acquisition Cost (CAC).
Also, with such fierce competition, it is more difficult to generate demand for the company’s products. This can lead to a stagnation in sales, or an inability to generate higher revenue YoY. This presents a problem for modern companies that are looking to achieve higher growth in order to receive funding.
These challenges lead brands to seek outside help. Advertising agencies can offer their experience and expertise and help companies address some of these issues. Professionals can help brands craft unique brand stories and narratives that will catch the attention of the audience, create buzz around their name, and make sure they stand out. Ad agencies specialize in different things. The ones specialized in demand generation can help educate and inform the company’s audience about the product’s benefits and features, leading them to become customers. Lastly, ad agencies that do media buying will know how to optimize the spending in order to get the best possible results.
Ad agencies on subscription are not an entirely new concept. But, they are not mainstream yet, and a lot of folks might not be familiar with how they work. As we mentioned before, subscription ad agencies charge a fixed monthly fee for their services. Their scope of work comes prepackaged and for one monthly payment, you get a service package you need.
Now, different agencies offer different packages and subscriptions. Some, like Presnt, offer all of their services in one package. Others have their scope of work separated into different packages, like for example strategy, creative, and media planning and buying.
There are many benefits to hiring a subscription-based advertising agency. Here are some of them.
Advertising agencies on the subscription offer you the possibility to upgrade or downgrade your plans based on your needs. If your problems change, or you are running low on the budget, you can always downgrade or just cancel your plan. Also, if you require more of their services or long-term cooperation, you can also upgrade with just a few clicks, without needing to meet, negotiate, or sign contracts. All of this can be done through the agency website.
Due to their business model, subscription ad agencies offer you the ability to get the bulk of their services for a fixed monthly fee. If you hire a traditional ad agency that charges per project or hourly, you may end up paying double or triple the price of an ad agency on a subscription for the same scope of work. All that money saved can go to your advertising budget, helping you get better results.
The subscription-based business model allows companies to always know how much their agency will charge them. This makes it much easier to budget their spending and predict their financial performance over the long run.
The traditional ad agency model has been around for a while. In order to hire such an agency you will usually set up a meeting to meet the team, see what they do, what their credentials are, etc. Then you will get a proposal with their suggested plan, go back and forth and negotiate, and then finally you have an agency. After you hire them, you will be assigned an account manager who will be in charge of communication between your team and the agency, making sure you get what you need. Throughout your work with them, you will go back and forth, making sure to manage their work and get reports and updates on their performance. Lastly, you will get billed for their services after their work is completed.
Compare that with an ad agency on subscription. You can hire an agency by simply going to the website. Let’s look at Presnt, full service ad agency on subscription, for example. On our website, you can see exactly what services we can offer, what the process looks like, how much you will be charged, and what you get in each plan. After the subscription, you get access to your personalized dashboard. You will request, track, and manage your work for us there. There is no need for endless meetings, and there is less chance of misunderstanding due to multiple levels of communication. You can always see exactly what we are working on, and when it will be delivered. Before you even hire our agency, you can see exactly how much you will pay, and you will get access to all our services. If you have no work for us, you can cancel at any moment.
Read the full breakdown on Ad Agency On Subscription vs Traditional Ad Agency.
Here are the best ways an advertising agency on subscription can help address the challenges businesses face when trying to scale.
Just like regular agencies, ad agencies on subscription specialize in different things. Some, like Presnt, specialize in generating demand and helping brands grow their revenue. This specialized knowledge can really make a difference. They can help your company inform, educate, and nurture your audience so your brand stays on the top of their mind whenever they are ready to buy.
Ad agencies have plenty of experience with media planning and buying. This specialized knowledge in different platforms, whether it’s Google Search Ads, Display Ads, Facebook, or Twitter, can make a huge difference. They will be able to create the optimal account structure and campaigns to get the best performance out of your budget.
Ad agencies on subscription have a unique business model. With that in mind, they can help you stay cost-effective by charging you way less money for the same amount of work than if you were paying per hour or per project. That additional budget can be spent on your campaigns.
Ad agencies make a lot of ads. The best ones are really skilled at the craft of storytelling. With their experience and talent, they can make sure they tell your story in a compelling way and create ads that will make sure your brand gets remembered.
Specialized knowledge and experience of ad agency professionals can really come in handy. They can advise on the best course of action in terms of advertising strategy, creative direction, or how to get the most out of your ad budget by optimizing your spending.
Advertising agencies on subscription have a unique and interesting business model. For a fixed monthly fee, you get access to packages of services for a whole month. This can be an ideal option for small and medium-sized businesses that are looking to scale. By offering cost-effectiveness, flexibility, and predictability, ad agencies on subscriptions can be a huge asset in a company’s growth.
Stefan is a marketer with 8 years of experience of working with various B2C and B2B brands.
If you want to learn more about how Presnt works, and how we can help you grow your business, click the button below and book a short call.
Presnt is headquartered in: Podgorica, Montenegro.
