In-House Advertising Agency－Korean Way of Doing Business?: An Exploratory Study of Korean In-House Ad Agency

Abstract

This study investigates Korean advertising practitioners’ perspectives on the Korean advertising industry, specifically on the in-house advertising structure, its positive and/or negative effects, and the relationship between an advertising agency and its clients. Participating in this study are a total of 136 Korean advertising practitioners from five in-house agencies and four independent agencies. The study results suggest that in-house agencies threaten the growth and even the survival of medium-sized independent agencies. The study concludes that to rectify this situation, the advertising industry should implement its self-regulatory policy. The study also finds that the relationships between advertising agencies and clients are generally worse within in-house agencies. To foster and to build a sound relationship, partnership between the agency and the clients should be built on mutual respect of their tasks. More managerial implications of the study are provided in discussion.