By An Agency of Record (AOR) is a long-term, exclusive partnership between a business and a marketing, advertising, or PR agency. The AOR handles all or most marketing activities, ensuring consistency and strategic alignment with the brand’s goals.
- In this article, we’ll cover:
What an Agency of Record does
Benefits of working with an AOR
How AOR relationships work
How to choose the right AOR for your business
Alternatives to AOR agreements
What is an Agency of Record (AOR)?
An Agency of Record (AOR) is a single agency that manages a company’s marketing, branding, and advertising efforts under an exclusive contract. The company trusts the agency to develop and execute marketing campaigns, media buying, PR strategies, and more.
Example: A retail brand may hire an advertising agency as its AOR to handle all TV, digital, and print ad campaigns over multiple years.
What Does an Agency of Record Do?
An AOR can provide full-service marketing or focus on specific areas based on the contract.
Common Responsibilities of an AOR:
- Brand Strategy & Positioning – Defining brand identity, messaging, and target audience.
Creative Development – Designing ad campaigns, visuals, and content.
Media Buying & Planning – Purchasing ad space (TV, digital, print, social media).
Public Relations (PR) – Managing media coverage and reputation.
Social Media Management – Creating content and running ads on platforms like Facebook & Instagram.
Market Research & Analytics – Tracking performance and adjusting strategies.
Tip: The contract defines what services the AOR handles and what the company manages in-house.
Benefits of Having an AOR
Why do companies prefer working with one agency instead of hiring multiple agencies?
Consistency in Branding
An AOR ensures that all campaigns, advertisements, and messaging align with the brand identity.
Cost Savings & Efficiency
A long-term relationship can lead to better pricing and more efficient workflows compared to hiring different agencies for each project.
Better Strategic Alignment
An AOR understands the business deeply, leading to stronger marketing strategies.
Simplified Communication
Instead of managing multiple agencies, businesses have one point of contact for all marketing needs.
Stronger Long-Term Partnership
The agency invests in the brand’s success, leading to better results over time.
How an AOR Relationship Works
The AOR agreement defines the scope, duration, and responsibilities of the agency.
Typical AOR Agreement Includes:
- Contract Length – Usually 1 to 3 years.
Services Provided – What marketing areas the agency will manage.
Budget & Fees – Payment structure (retainer, commission, project-based).
Performance Metrics – KPIs used to measure success.
Exclusivity Terms – Whether the company can hire other agencies for specific tasks.
Example: A fashion brand’s AOR might handle all advertising campaigns, but the company could hire a separate agency for event planning.
How to Choose the Right Agency of Record
Choosing an AOR is a major business decision. Consider these factors:
Industry Experience
Does the agency have experience in your industry? Check past clients and case studies.
Full-Service vs. Specialized Services
Do you need an all-in-one agency or one focused on advertising, PR, or digital marketing?
Creativity & Innovation
Review their portfolio to assess creativity and strategic thinking.
Communication & Collaboration
Choose an agency that fits your company culture and values.
Pricing & ROI
Look at pricing models (retainer vs. project-based) and expected ROI.
Pro Tip: Request a proposal from multiple agencies before making a decision.
Alternatives to an Agency of Record
Not all businesses need an AOR. Here are some alternatives:
Project-Based Agencies
Hire agencies on a per-project basis (e.g., one agency for branding, another for social media).
In-House Marketing Teams
Build an internal marketing team instead of outsourcing to an AOR.
Hybrid Approach
Combine an in-house team with specialized agencies for different tasks.
Example: A startup may have an internal content team but hire a digital marketing agency for SEO and PPC.
Conclusion
An Agency of Record (AOR) can be a game-changer for businesses, providing strategic marketing expertise, consistency, and efficiency. However, businesses should carefully evaluate their needs, budget, and long-term goals before signing an AOR agreement.
Looking for an AOR? Start by identifying agencies with industry experience, creative expertise, and a track record of success!
FAQs
1. How long do AOR contracts typically last?
Most AOR agreements last 1-3 years, with an option to renew.
2. Can a company work with other agencies if they have an AOR?
It depends on the contract. Some AORs allow partial outsourcing, while others require exclusive partnerships.
3. What industries use AORs the most?
AORs are common in advertising, PR, healthcare, fashion, and technology sectors.
4. How does AIR pricing work?
Agencies may charge a monthly retainer, commission on ad spend, or project-based fees.
5. Is an AOR better than hiring multiple agencies?
It depends on the business. An AOR provides consistency and cost savings, but multiple agencies offer specialized expertise.
