Persuasion means delivering a message in a way that the recipient of the message accepts it willingly, eagerly and will full of satisfaction. In order to steer audience’ mind towards their goals, the media use various known as "persuasion techniques." Therefore, Ziba advertising agency, which was established in 1940, created a great evolution in advertising of Iran by using these techniques. This research has been studied the formation and activities of the Ziba advertising agency in the decade 1937 by considering the psychology of advertising and persuasion of the audience. The research was conducted based on descriptive-analytical and written sources of the Ettelaat newspaper. The aim is to get familiar with the psychology of advertising and persuasion of the audience in the Ziba advertising agency. The results of the research indicate that this agency, in addition to utilizing the emotional and psychological capacities of the audience, achieved its ultimate advertising goal by emphasizing poetry, Iranian proverbs and localizing advertisements. Ziba advertising agency has used various advertising methods such as repetition, negation and affirmation, reasoning, simultaneous association of two phenomena or events, significant association, and transferring in some of its commercial advertisements including those for Pepsi- Cola beverages, Philips shavers, Duo-therm heaters, Siemens electric irons, National radios, Coleman heaters, Ford automobiles and so on. All these techniques are effective for registering a brand in the audience's memory. Using these methods has led to the audience persuasion, growth of commercial advertising and the prosperity of the industries of that time.