The dark side of the media agency industry: value destruction and co-destruction in a B2B context

Abstract

ABSTRACT Given the growing interest in value destruction and co-destruction research, this study explores media agency-client relationships, identifying their industry-specific value-damaging behaviours and business conditions. It adapts the concept of service logic value spheres to differentiate between provider and client value destruction as well as joint co-destruction spheres. Through 25 interviews with media agencies, advertisers, and media consultants, the study analyses whether one actor (provider or client) or both (joint) are responsible for value destruction. It determines value destruction/co-destruction activities occur in several contextually embedded business environments (media advertising markets). Additionally, organisational structures (marketing departments), management decisions (leadership), and relationship stages (pitch situations) are framed by actors’ industry-specific service activities (campaign planning). The authors highlight management implications and suggest strategies to improve media agency provider-client relationships.