The overriding purpose of this study was to highlight the factors from both the theory and empirical research for understanding the factors which influence creativity in advertising agencies of Pakistan. ?KEYS to Creativity and Innovation? assessment tool was used to identify factors affecting creativity. A survey of 30 advertising professionals from account management, creative and design departments of different advertising agencies of Islamabad were interviewed using a semi structured interview guide to understand the organizational factors influencing creativity in advertising agencies of Pakistan. The main insights from the study were that the top management in advertising agencies encouraged their employees to be creative by offering financial rewards and verbal encouragement. However, the clients they were working for, generally did not accept creative ideas to market their brand because of unwillingness to take risks and limitations in budgets. There were also limited researches to understand the market which made it difficult to assess whether the creative advertising would be successful. The findings from the research can help the branding agencies and brands to work together for creating an environment that fosters creativity in their organizations which can then be reflected in the advertisements. The research was first of its kind to understand factors affecting creativity in ad agencies of Pakistan using a theoretical and empirical base. It presented a research model of factors affecting creativity in ad agencies of Pakistan after data analyses. The direction for future is to test the proposed model of the study on a larger scale by targeting multiple advertising agencies in Pakistan of different sizes and from different cities of Pakistan.