Advertising agencies are service-based businesses where human talent is the main asset. Every campaign designed, produced, and executed involves professionals from multiple departments, and their time is the key resource that determines a project’s profitability.
From planning and client service to market research, creative development, production (graphic, digital, and audiovisual), media planning and buying, and campaign performance analysis—every team member invests valuable hours to ensure success. But how can agencies accurately measure and monetize this time?
TimeSheets: A must-have tool
To understand the true profitability of a campaign, agencies need to track the real cost of invested work hours. This is where TimeSheets become essential, allowing agencies to log and associate employee work hours with specific tasks within a campaign.
A specialized software solution—such as an ERP designed for advertising agencies—makes this process seamless by integrating task planning and execution. Team members can log their hours directly into the system in a simple and non-disruptive way. Additionally, this data can be linked to HR records, where all employee-related costs (salaries, benefits, bonuses, etc.) are stored.
Real-Time Profitability Calculation
An ERP with TimeSheet functionality allows agencies to calculate campaign costs in real time, summing up all work hours and comparing them to the revenue generated. By applying the agency’s overhead percentage, a highly accurate profitability analysis can be achieved. Furthermore, indirect expenses such as meals, transportation, materials, and other costs incurred during the campaign can be factored in. This ensures a more precise and realistic profitability assessment, giving agencies a clear picture of how much they’re truly making from each client and campaign.
By using this methodology, agencies not only optimize resource management but also gain a clear understanding of each client’s profitability. This enables data-driven decision-making to enhance both operational efficiency and financial performance.
A User-Friendly and functional TimeSheet system
For this system to be truly effective, it must be intuitive and easy to use—without adding extra workload for employees. The key is integrating time tracking into the natural workflow, ensuring accurate data capture without friction.
Want to see how we’ve built a cutting-edge, user-friendly TimeSheet system designed specifically for agencies? Let’s talk!
Optimize your agency’s profitability with smarter time management!