What Is An Agency Of Record Agreement

Recording agencies dominated the advertising industry, mainly because agencies were familiar with traditional broadcast and printing platforms. Although a registrar is still common, customer attitudes towards it have changed. AOR failed to convince customers that they could also handle the speed and complexity of new interactive and social platforms. Now, marketers are seeing more and more cases where it was not only possible, but also beneficial, to move forward without a registrar. “In the advertising and marketing industry, AOR stands for Agency of Record. In this context, an AOR is an agency authorized to purchase advertising time (for radio or television advertising) or space (for print or web advertising) on behalf of the company with which it has an agency contract.┬áLarge companies tend to prefer AOR agreements because they believe it is more useful to put an agency on mandates. You may think that paying recurring fees is worth it, because any event or PR need that arises can be handled quickly and efficiently by a professional team that is always available. Others may omit this form of relationship from their associations if resources are more limited and they can only afford to maintain public relations services on a case-by-case basis. Another reason could be the existence of internal (internal) employees who manage all or most of the public relations functions. A registrar`s letter can be used as an insurance sales tool in some cases, although some question its legality. [2] “We no longer have an AOR or primary creative agency on many of our brands,” a PepsiCo spokeswoman told Ad Age.

“We tap into a list of agencies for different projects while looking for the right creative ideas.” The author is the CEO of Avidan Strategies, a consulting firm specializing in advising marketers to optimize agency practices. Avi Dan has served on the boards of two major global agencies and has held leadership positions at WPP, Publicis, Saatchi, Havas and Y&R, where he has worked with iconic brands for P&G, Kraft, Bayer, GM, Pfizer, Mars, The Wall Street Journal, Sprint, Samsung, Ally and Coca-Cola. Avi is originally from Israel and is a former army officer and an MBA from Columbia. .