Towards an Organizational Theory of Advertising: Agency—Client Relationships in South Africa

Abstract

There has been a recent spate of advertising research drawing upon aspects of organization theory. To date, however, much of this work remains highly fragmented in nature. This article develops a tripartite organizational theory model that attempts to explain the relationship between advertiser and advertising agency. The model examines this relationship prior to, during and subsequent to the contracting process. In the empirical section of the article two facets of the model are tested: (1) the extent to which agencies use creative awards as signalling devices, and (2) the effect that the accreditation system has had upon industry concentration. The article concludes with a discussion of the results and suggestions for further research.