Raymond Rubicam, 85, cofounder of Yong & Rubicam Inc. advertising agency, died Monday at his home. He had suffered a heart attack in 1974 and had a pacemaker implanted about a month ago.

Mr. Rubicam launched the advertising agency in 1923, in association with John Orr Young. Mr. Rubicam succeeded Young as president in 1927 and was chief executive officer and principal stockholder until his retirement in 1944. The firm became one of the world's largest.

The agency pioneered marketing research and counseling as part of its service to clients, and the establishment of a national field research staff that not only gathered marketing data but studied public newspaper and magazine reading habits.

Mr. Rubicam hired George Gallup in 1932 to research advertising effectiveness, and from 1944 to 1948 owned Audience Research Inc., with Gallup.

Mr. Rubicam served with the Committee for Economic Development from 1944 to 1948. He also was special assistant to the chairman of the War Manpower Commission in Washington.

Since 1948, Mr. Rubicam had lived near Scottsdale, a Phoenix suburb. He was a director of Valley National Bank, and a director of the American Institute for Foreign Trade. He was inducted into the American Advertising Hall of Fame in 1974.

Survivors include his wife, Bettina.