An advertising agency or ad agency is providing service to creating, planning and handling advertising for the clients. An ad agency provides an outside point of view to the take necessary steps for selling the client's products or services. This agency can also handle overall marketing and branding strategies and sales promotions for its clients.
In Bangladesh, Advertising agencies work on a combination of fee-based and commission based compensation. The fee is paid by the entity for which the marketing is being done. The commission is a payment from the media to the agency and is usually equal to 15% of the cost of the advertisement. They broadcast in the newspaprs, radio and television; on a commission basis.
Interactive Agencies may offering a package solution for the client for Web Design and Development, Search Engine Optimization, Search Engine Marketing, Internet Advertising and Marketing or E-Commerce consulting. Interactive agencies offering a wide range of marketing services for the digital space to promot Client's products or services. The digital space is defined as any multi-media enabled electronic channel that an advertiser's message can be seen or heard from. The 'digital space' translates to the Internet, Kiosks, CD-ROMs, DVDs, and Lifestyle Devices like iPod, PSP, and Mobile phone.
Interactive Agencies function similarly to advertising agencies, although they focus solely on interactive advertising services. They provide services such as strategy, creative, design, video, development, programming (animation), deployment, management and reporting. These days, Interactive Agencies provide Web 2.0 website design and development, e-Learning Tools, email marketing, SEO/SEM services, Content Management Services, web application development, and overall Data migration other internet related services. But it is not recognized these services provider in Bangldesh as advertising agency.
Not all advertising is created by agencies; companies that create and plan their own advertising are said to do their work in-house.