What Are the Benefits of Hiring an Advertising Agency?

Increase Your Return on Investment and Save Time

By working jointly with an advertising agency, you can speed up the method of building effective campaigns. Normally, by working with various customers, an agency will be ready to assign more approving advertising measures, developing your return on expenses. With added buying power over most small business partners, agencies will also understand the fair market price for marketing elements, media time, and web space.

Letting them manage your marketing budget will provide you with more time to concentrate on the key areas of your business. An advertising agency can examine the effects of marketing plans so that you can handle more important business concerns.

Take Advantage of Specialised Experiences and Resources

With access to business research and information about your opponents, an advertising agency is most beneficial to understand how you should be represented in the marketplace. They will understand how to employ online channels to gain access to particular segments of your target market, or your complete target demographic. Most marketing companies will also assist with search engine optimization (SEO), online reputation administration, and redesigning your website.

Depending on their size, an advertising agency can provide you access to graphic design services and copyright. They can also manage public relationships, social media presence, and internet technology issues. With the best agency, all of this marketing support could be possible for your business. Analyze if you have the time and support to accomplish these tasks.

Discover a Different Marketing Strategy

Many businesses that hire an advertising agency discover new ways to improve themselves. Find out where you should be promoting online, the best time to launch an advertising campaign, and which programs will benefit your business the most. With up-to-date advertising plans that use marketing circumstances like social media, your company will have the best possibility of growing in a full-packed marketplace.

Whatever size your business is at the time, an advertising company will be capable of viewing your business from an outsider’s perspective and offering customized clarifications that suit your business. In-house marketing businesses can find it a challenge to compete with the original energy that comes from an external agency. Even if you can’t provide a full-service advertising agency, there are still businesses that can help you create very effective, smaller advertising campaigns. And larger businesses can take benefit of an agency’s involvement with television, radio, and other types of media promotion.

A Secure Future

If you’re trying to maintain customers, or simply need guidance with a new improvement, working with an advertising agency could be one of the most cost-effective marketing tactics. If you choose to hire a company, learn to trust their judgment. After all, they’ve been operating in the advertising division for years. Give them as much information as you can about your business, assistance, products, and customer base. A new plan could dramatically increase brand awareness, develop original sales, boost sales leads, and build a healthy functioning connection that helps your company succeed now and in the future.

What Are the Requirements to Start an Advertising Agency?

• Define your purpose for the company or business.
• Keep up with the advertising department.
• Allow first-time deals.
• To build your client base, choose who you will market to
• Draw up a marketing plan.
• Consider choosing courses that will assist you to run this business.
• Obtain start-up capital.
• Create a website.
• Attend conferences.
• Hire employees.
• Try specific websites.
• Put together a portfolio.
• Discuss your contacts for referrals.

Taxability of Advertising Sector pre-GST

With the introduction of service tax on all services, the tax was appropriate on all the features of advertising services, excluding the sale of time or space for advertisement in some situations. Therefore, the sale of time slots in between telecasts on television, the sale of time on hoardings, and such were not subject to tax. However, the negative list was revised to restrict the non-taxability to the business of space in print media, and all the additional sale of time or space methods were carried under the net of service tax.

Advertisement through Advertisement Agencies

There are multiple options that an advertiser can choose to promote a business. An advertising agency is one such option wherein the companies request an agency rather than quickly addressing the advertisers for advertising. There are two incidents that can happen in this kind of arrangement:

Advertisement in the Principal’s Capacity

The advertiser requests the advertising agency for promoting its business. The advertising company acquires the advertisement from the advertising firm in its name and then resells the same to the dealer.

Example: A company that distributes newspapers sells space on sheet 1 of its newspaper to an advertisement agency. If the organization charges Rs 100,000 for the sale of such a period, then GST payable on the same will be Rs 5,000 (100,000 x 5%).
When the advertising agency markets the same space to a company entity at, say, Rs 150,000, the GST payable on the same will be Rs 7,500 (1,50,000 x 5%).

Advertisement in Agent’s Capacity

A company, instead of approaching the promoter, they can contact the agent for advertising or promoting their business. The advertising agency gets the space on account of the advertiser but charges a commission for the same. In such a situation, GST would be levied at 5% for advertisement and publication in print media or 18% for advertisement in digital media. The advertising firm would levy GST at a rate of 18% on the payment charges.

Advertising Section under GST and Rate of Taxes

GST applies to all forms of advertising including the sale of space in print media. While this manages to increase payment outflow, the free flow of credits on the acquisition side leads to an overall reduction in the value of advertising.

GST on Advertising through Digital Media

In these events, there are two parties involved – the advertiser and the administrator.
Advertiser – Who needs to advertise a product, website, idea, mobile application, etc.;
Publisher – Who declares these notifications or ads. The ads can be declared in different digital factors like Emails, Websites or SMS.
Advertisement on digital media is responsible for GST at the rate of 18%.

GST on Advertisement in Print Media

The advertisement, in this instance, is written in print media like Newspapers.

Example: A leading newspaper publishing organization sells space on sheet 1 of its newspaper to a company entity. If the publishing firm charges Rs 100,000 for sale of such space then GST due on the same will be Rs 5,000 (100,000 x 5%)

Advertisement through Designated Persons outside India

As per Section 5(3) of the IGST Act, 2017, the reverse-charge mechanism is suitable for advertised goods and services. This also refers to any supply of service by any person who is placed in the non-taxable region to any person residing in a taxable territory, other than the non-taxable online recipient.

If a person procures an advertisement service from another person, a person located in a non-taxable territory, then he/she would be expected to satisfy the GST liability to the government as a recipient of service.

Input Tax GST credit on Advertising services

Advertising companies or businesses invested a lot of money in the purchase of materials and high-end electronic goods that were needed for their businesses. But they were not allowed to claim the credit on the same. Under GST, they would be permitted to maintain the credit from taxes spent on such material.

Advertising companies are expected to carry out advertisement shoots in remote areas where they do not have a place of business.