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The development of the advertising agency can be divided into four stages they are Space Broker Stage – Around 1840, some people acted as a simple agents for selling space in newspapers to their clients. The newspaper owners gave a commission of 25% on such sales. Later on, they resold a portion at whatever price, they could obtain from advertisers, and this had been called the ‘space broker stage’ in the evolution of the modern advertising agency. The second one is the whole selling period – George P. Rowell had opened an agency in 1865. He contracted with 100 newspapers to sell him a column of space each week for a year. He was able to obtain large amount of space for a period of time at a reduced price from the publishers. He also received 25% as agency commission. He resold the space to advertisers at different prices. The principle of buying in whole selling lots and reselling to small buyers was the main element of success of his business. It was described as whole selling period. The next stage is marketing services stage – by 1950, advertising agencies were offering more varied highly skilled services to their clients. They considered psychology while creating advertisements. Accelerated industrial development had further increased the role of advertising agencies in modern marketing. Thus, the advertising entered into the ‘marketing service stage’.