#Video opportunities
I have a small ad agency that has been exclusively print-oriented for three and
a half years. We've made the decision to get into video, because we think there
are more long-term opportunities there. We are having trouble figuring out how
to make the transition in a way that makes economic sense. I'd like some advice
about the marketing and business aspects of the video business.
We envision doing television commercials and short-form programs for clients in
the future. As a result, we're looking at buying something on the order of the
Media 100 or a VideoCube. The problem is that we can't justify making this kind
of investment without having some video-related cash flow to make it work it.
It would be different if we just had a pile of money sitting around that we
could put into some assets that didn't return cash anytime soon, but that's not
the case.
We're trying to figure out a low-cost way to get started in video which would
allow us to get experience and make some money while still working on low-end
type work. Then when our experience level is high enough that we feel confident
going after higher-end work, we will make the investment I've mentioned —
hopefully in time to make money out of the '96 election cycle, since we do
primarily political work.
If you have any suggestions about how we could accomplish this, I would
appreciate them. Don't worry about suggesting something too "low end" for an ad
agency. We're small enough and humble enough that we don't mind getting our
fingers dirty and doing "scut work" that other agency types wouldn't dream of.
The only criteria are that it has to 1) be profitable and 2) be low cost on the
front end.
Thanks.
David