An advertising agency that assists clients by both developing and placing advertisements may receive payment according to an incentive plan based on performance. These plans typically pay for agency costs and a 5 to 10 percent profit, plus bonuses if specific goals are met. This type of agency is referred to as

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A full-service agency typically offers both creative development and media placement services, and may be compensated through an incentive plan that includes a base fee plus performance-based bonuses. In contrast, in-house agencies are owned by the company they serve and may not receive outside clients or use incentive plans, while limited-service agencies focus on specific areas of advertising and may not offer both creative and media services. Modified-service agencies and promotional firms are not commonly used terms in the advertising industry.

An Advertising Agency That Assists Clients by Both Developing and Placing