ABSTRACT
The modern advertising agency structure grew with the mass media. Some of the original advertising agents began as news agencies, selling stories to the newspapers. In the early nineteenth century advertising agents sold space for regional newspapers to national advertisers. In return for selling the space, the agent would get a percentage of the sale in commission. In the late nineteenth century, advertising grew enormously, with new advertisers requiring space in newly emerging national newspapers and magazines. Advertising agents began to switch allegiance. Before, they sold space for a large number of newspapers to a small number of clients; now, a large number of clients required advertising in a more concentrated media market. Instead of representing the newspapers, the agents switched to representing the clients, though the agency was still paid commission by the media owner. The media owner was happy with this. Instead of the newspaper proprietor having to follow up every advertiser for payment, the agency would guarantee this payment and receive a commission from the newspaper for placing the ad.
