Hey guys. Had a question would love some guidance and advice.
So give 5 years back i worked for my brother in sales. He had a Advertising agency he created himself. His team would be contacting marketing directors of companies that they saw ads for online. This was more of cpc/cpa based. They would make deals and run test trials for the companies. Many of these
companies were international and prepay-ed almost all the time. Example. A MMORPG game company from Germany would agree on a $5,000 prepay-ed campaign budget for 5,000 new leads/signups. 1$ Cpa per sign up. What my question is.
Its 2018 now. How did the Digital Advertising Agencies change? Is it still possible to gain/close clients on prepay terms? Why prepay terms worked best
was because gave time to test and actually make the client CPA work for them. Also Media buying was an option. Do people still Media buy? Big question.
Since its 2018 im guessing almost all clients run on a CPA Offer correct? Meaning no one does a campaign on a CPC/PPV Basis ?
Its only CPA/CPS now right?
I apologize ahead of time if my question is something ridiculous. I am still learning and thinking about starting an agency like my brother did. Basically got inspired from the book "The Dream" Gurbaksh Chahal
The book the "The Dream" Gurbaksh Chahal is great. But unfortunately Gurbaksh has done some very questionable things over the years (like beat several women).
Regarding your questions surrounding agency.
Is it still possible to gain/close clients on prepay terms?
yes, it is. The clients have to be large enough to be able to pre-fund spend. More so they need to trust you can deliver and wont run off as a vendor. Also, when you are working with a product or service that doesn't have a proven funnel or CPA price its normal to get a "discovery budget" or pre-paid funds up front to do a test together to establish what acquiring a customer will cost.
Most Digital Advertising agencies make their money from media buying. So im not 100% sure what you meant by your question.
CPC / PPV basis campaigns are nearly dead. Some agencies are lucky to get CPM contracts for brand building but this is hard to come by and usually require some serious realtionships.
Everything is possible, if you want to start an agency I suggest to find something/a niche that you will stand out with. What added value can you bring compared to any other agency ? Are you specialised in certain verticals / specialised in a certain traffic source where you are an expert in / etc...
I would also suggest to study the current landscape of agencies, a lot of large companies use different agencies for various reasons. For example : Dell will have a global contract with MediaCom for everything Display, then they can have a contract with a smaller agency that specialises in Social Media, etc.. This is why finding something to stand out with is important.
On the other side, more and more companies are working less and less with agencies cause they lack a lot of transparency. A company might give 25K to an agency and set some KPI's, the agency takes their cut and just spend the money while trying to reach their KPI's.. So this might be a selling point to provide more transparency what you will do if a company gives you money for marketing/advertising.
In terms of clients running mostly on CPA it varies from agency to agency, you can also work on brand awareness where you will have KPI's like time on site/CPC/bounce rate's etc
In digital advertising things are changing fast, and 5 years is a long period for this industry. In 2016 I saw 10 agencies closing their mature businesses because they lost clients wishing to pre_pay and their media buying wasn’t efficient.
I agree with synapse that CPC traffic would be hard to monetise. If you get a prepaid CPM contact you are lucky!
But today clients wish to post-pay for leads that converts into sales, deposits, mobile IAPs. And things like registrations (dating, lifestyle), posts & publish (ecommerce/shopping) are not that important than they were few years ago. For me, mobile gaming remains a top converting vertical, and I’d suggest that you start with some gaming offers/contracts. Still mobile CPA remains priority.
You'll want to run a good marketing campaign for your ad agency. Good luck!
Don't forget to ask Google: https://trends.google.com/trends/exp...ising%20agency