Agency of record (AOR)
also known as AOR
A formal, ongoing arrangement in which a client names one agency as its primary, exclusive provider for a discipline - like advertising or PR.
For example, a brand names a creative agency its AOR, giving it first call on all advertising work under a long-term contract. The agency gains steady, exclusive revenue; the client gains a deeply embedded partner who knows the brand.
Why it matters to your firm: an AOR relationship is among the most valuable an agency can hold - exclusive, long-term and deeply embedded, with high retention and lifetime value. The trade-off is dependence on one client, so it pairs best with a strong contract and a diversified book.
Common mistakes
- Relying on one AOR client for too much of your revenue.
- No clear scope, so the client assumes 'everything'.
- Weak termination terms on a high-value relationship.