Advertising is one of fifteen creative industry subsectors in Indonesia. Creating an advertising needs a creative sense, which not only meets the visual creativity criteria but also persuade customer according to the client requirements. An advertising agency entails an ability to create and maintain creativity environment within its organization. This is one of the most important capability requires for advertising agency. Based on indepth interview and focus group discussion amongst advertising agencies in Yogyakarta, this article identified capabilities needed to encourage and sustain creativity in the organizational level. There are two key focuses for the advertising organization to achieve these capabilities, which are internal and external. Internal focus means advertising organization establish convenient work environment as well as suitable training for its creative workers. While external focus means inaugurate effective communication with client to capture their expectations as well as comprehend consumer behaviour as targeted by the product. It aims to create a flawless ad and meets client requirements.
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