How an Ad Agency is Structured

The first thing that any person or business owner should do before going through the process of selecting an ad agency is they should take the time to gain a full understanding of how an ad agency works and how they are structured. By understanding this ahead of time, a person or business owner will be more informed on what to look for and what to ask when interviewing an ad agency. This will then help the person or business owner avoid any potential problems and may even lead to some financial savings.

Operating Category

In years past, an ad agency covered every aspect of advertising for any type of client. Now this industry, like so many other industries are becoming more and more specialized. Some ad agencies focus on just one category of advertising or just a handful of related categories. A single category might be just the sports category while a handful of related categories might be the travel category, which could include travel, accommodations, entertainment, dining, etc. Finding an ad agency in Los Angeles that specializes in the category of the business will certainly improve the chances of success for the advertising campaign.

Medium for Advertising

Another part of the ad agency is their channels for advertising. Some ad agencies focus on a specific set of advertising channels like television or print while other ad agencies focus as a full service Radio ad agency, offering all channels from print to television to internet advertising to direct mail advertising. Either method of focus is fine. It really just boils down to the preference of the person or business owner. If they intend to focus only on television advertising, then it will not matter that an ad agency offers access to all of the other channels or not. In other cases, the person or business owner may want reach their customers through multiple channels. A company that offers access to all of the channels may be able to provide better pricing as part of a package than what might be offered by an ad agency that focuses on only one or a few advertising channels.


Ad agencies are typically paid through a combination of fees and commissions. This could include a fee for a retainer or a fee per project. There can also be a fee on top of that which may be a percentage of the cost for the placements of the advertising. All of this is worked out well in advance of any work.

Just like with anything else, being an informed customer will help avoid any potential issues. It will also help to save money too. A person or business owner will be able to optimize their campaign better for only the services that they need.