As long as you maintain a strong platform for the advertisers to elevate their products or services, advertisers will continue to patronize your business.
Fickle
One disadvantage to being funded exclusively by advertising is that your relationship with the advertising agency or company can change with personnel changes. On the contrary, life funded mainly by advertising has disadvantages besides as advantages.
Revenue
One servicing to continuance funded by advertising is that advertisers don't dictate how you manage. As lenghty as you conserve a level product and a appreciable adjacent, there is no contour to the bigness of advertising revenue you can pursue for your biggie. For ventures that depend upon actual cramped maintenence, this can penny-pinching a essential give back on your investment (e.g., owning a billboard or allowing advertisers to hang banners from the side of a commercial Belongings you own). While you own to perform continuation to the billboard or building, advertisers conclude not recorder your business model. Instead, they focus on whether their advertising goals are met.
Large Accounts
Advertisers have one goal, which is to associate with current and future customers. Agencies get paid millions of dollars to help companies find ways to advertise their brand. If you present a viable advertising opportunity, your business can attract large advertising accounts. Large accounts eliminate your need to pursue bank loans or investors to support your business operations.Advertising budgets can be steep. Better advertising agencies command budgets equalling hundreds of millions of dollars, which can tight hefty sources of revenue for media outlets. Provided your field offers advertising opportunities, attracting the exactly brands can be lucrative.
One executive may endorse your company as a viable advertising outlet, while a new executive believes another company is a better investment. It is difficult to foretell when changes to personnel will occur within a company, which can mean uncertainty for your operating budget. Without knowing for sure whether your business will have adequate funding in a year, buying or leasing office space, hiring employees or expanding your business is a challenge.
Following
A major disadvantage to being funded by advertising is that revenue may not be sufficient for small or start-up businesses. In order to attract any advertisers, you must have relationships with advertisers and a following. Large advertisers seek to arrive masses of people. Until your business reaches a certain level of exposure or success, the advertising revenue you attract could be meager, making it difficult to function your business. Success doesn't happen overnight. Plan to fund your business through advertising revenue only after you have a massive following and proven longevity in your industry.
