Background: Change factors have appeared in advertising and customer understanding has grown among companies, which have led to important competitive advantages. Advertising agencies are not the only ones benefiting from this expertise anymore, but companies are starting to thus take clients from advertising agencies. They are also taking intermediaries, such as production, over more and more jobs from advertising agencies. This has led to an even tougher competition in the market and that advertising agencies are losing their jobs. The increased competition in the market, has also led many companies choosing to change its advertising agency, to think in new and changing strategies in the enterprise. All these factors have resulted in a drastic increase in competition in the advertising industry, which has resulted in many advertising agencies have gone bankrupted.
Problem question: What external forms of cooperation are important for a small to medium sized advertising agency to have a long-term survival?
Purpose: To analyze and evaluate conditions in the future for small to medium sized advertising agencies, by examining the existing relationship between advertising agencies and its current customers.
Method: The survey will be conducted using a deductive approach and be conducted in two parts. The first part is through qualitative interviews of three advertising agencies, and the second is interviews of these three respective advertising and promotion business. Data from both of these sources of information will be used in the survey as the primary data, then they should be opposed to each other, analyzed and evaluated and also compared with the theoretical framework.
Conclusion: After the change in advertising agencies industry, we can interpret from our study that the companies which are working on a relational perspective will be rewarded in the future. It is also important for advertising agencies to be instead of than previously being creative. Hereby, we believe that small to medium sized advertising agencies must maintain and build relationships with existing customers and be even more adaptable to cope with competition.