Business characteristics of network and independent media agencies: A case study

Abstract

This study examines media agencies and their provider-client co-creation activities based on four business characteristics: value creation, reputation, funding, and governance structure. The conceptual framework, named CoKnowledgeShop, combines a strategic management business model with a service marketing co-creation perspective. This interdisciplinary framework provides the conceptual basis for a qualitative comparative case study, in which a global network and a nationally independent media agency are analysed. The findings–based on nine and ten interviews, respectively–reveal notable differences in how the two types of agencies operate and adapt their business practices in response to digital transformation. Both agency cases have expanded their traditional media buying portfolios by incorporating specialised non-media services, including content production and technological solutions such as programmatic advertising.