The penetration rateof cable television in Taiwan has grown from 10% in 1991 tp 80% in 1997 at an exponential rate. Riding on the trend, its advertising value surfaced to advertisers and agencies since 1995. The purpose of this study is to explore how new media such as cable television is being operated in advertising agencies. In additional to secondary data collection and analysis, the author conducted a sample of 15 in-depth interviews, focusing on major full- service agencies in Taiwan. It is found that advertisers' attitude and preference had great influence on agency's media selection; some dominating advertisers would even take media buying into their own hands. As for agencies, cable television is seen as a complicated medium with large amount of work and yet, high return. However, misconduct such as commercial interruption without prior notice is a problematic area yet to be solved. From the media human resource reallocation, it is confirmed that the importance and professionalism of media function withn an agency has gradualy gaining acknowledgement. Finally, the author proposed direction for cable television and advertising industry's development.