Most of an advertising agency's expenses are in the area of:

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Salaries and benefits for employees make up a significant portion of an advertising agency's expenses, as agencies depend heavily on skilled professionals like copywriters, designers, and account executives to deliver quality advertising campaigns. While media costs and commissions are also expenses, they are typically a smaller portion of the overall budget. Personal selling and production facilities may also be expenses, but they are typically less significant than salaries and benefits.

Most of an Advertising Agency's Expenses Are in the Area