Advertising and creativity, a governance approach: a case study of creative agencies in London

The author explores the processes of restructuring in the UK advertising industry. His core concern is with changes in advertising practice in creative advertising agencies. He explores how creativity is manifest as ‘peer regard’, and shows how there has been a shift of power between creative and media-buying functions as a result of the demise of the commission system in the last twenty-five years. A changing governance of advertising practice, that involves both formal regulation and economic governance in and across firms, is highlighted. It is argued that creativity is better seen as an effect rather than as a cause of particular advertising practices. The author concludes that the ‘creative governance’ of the UK advertising industry has favoured a close-knit and colocated community of firms. A future change in this form of governance could change this pattern.