Understanding Advertising Agencies in a Multistakeholder Knowledge Environment: Challenges and Importance

Abstract

The chapter addresses the position of advertising agencies in integrated marketing communications (IMC) within a multistakeholder knowledge environment. Advertising agencies coordinate and integrate diverse knowledge from clients, consumers, media outlets, and internal teams to create cohesive marketing communication strategies. This involves navigating complex stakeholder expectations and market conditions. Through a historical overview and analysis of the evolution of relationship models, the essence of the problem in the agency-client relationship is pinpointed. The core issue lies in the lack of consensus and clear methodology for assessing the contribution of an agency's work to its client's business results. This topic holds theoretical importance for researchers and practical significance for both clients and agencies involved in the IMC process. Understanding these business landscape, is essential for advertising agencies achieve sustained success within a multistakeholder knowledge environment.Keywords: advertising agencies; integrated marketing communication; knowledge environment; agency theory.JEL Classification: D22; L23; M11; M21.Cite this chapter: Lozović, N., Perić, N. & Mamula Nikolić, T. (2024). Understanding Advertising Agencies in a Multistakeholder Knowledge Environment: Challenges and Importance. In: Knowledge Management in Economy, Technology and Education, N., Perić, and O. Arsenijević, (Eds.). (pp. 111-139). Book Series Socio-Economics, Research, Innovation and Technologies. RITHA Publishing. https://doi.org/10.57017/SERITHA.2024.KM-ETE.ch5 Chapter’s history: Received 3rd of November, 2023; Revised 7th of February, 2024; Accepted for publication 28th of May, 2024; Published 30th of July, 2024. About the Author(s):Nenad Lozovic is currently pursuing a doctoral dissertation in the field of business relations between agencies and advertisers at Metropolitan University in Belgrade. A Master's degree in Psychology from the Faculty of Philosophy at the University of Belgrade. Lecturer at New Bulgarian University in Sofia. Leveraging over three decades of experience, Nenad has held senior managerial positions in prominent advertising agencies within the region: Saatchi & Saatchi, Bates, Zenith Media, Starcom MediaVest, Young and Rubicam, and Wunderman. Long-standing involvement with the Bulgarian Association of Communication Agencies, having served as President, Vice President, and Board Member.Nenad Peric is Full Professor of Social Sciences (Marketing, Communications) and Full professor of Arts (Production of Arts, Media and Advertising, Theory of Arts). Holds BA, specialization and MA degree in the field of arts (production of culture and arts), MSc in production of arts and media and PhD in Communications. During 26 years of professional carrier, he was engaged as: coordinator, producer, marketing and PR manager, marketing and media researcher, chief of department, dean of faculty, etc. Nenad is member of several editorial boards, reviewer of national and international scientific WoS & Scopus journals.Associate Professor at Metropolitan University, Faculty of Business and Management. She has over 25 years of professional experience in marketing, research and management working as a consultant, researcher, professional coach (PCC ICF) working for large and SMEs clients. Member of editorial board, reviewer in several national and international journals. She has published 3 monographs and more that 60 scientific papers covering topics such as consumer behaviour, leadership, brand management, the behaviour of the new generation Y and Z, ecology, circular economy, business reinvention and others. Tatjana is a member of numerous professional associations: ESOMAR, International Coaching Federation, Association of Business Women, Serbian Association of Employers and others.