Should advertising agencies have in-house production companies? Or, production companies they have interests in?  There is an ongoing debate in the advertising, film and digital video production industries, that advertising agencies who are involved in this practice are in a conflict of interest. 

That, this ownership presents a present danger to clients, who more than often are provided cooked up estimates and quotes that favor production companies owned by the agency.

What’s interesting is that its difficult to get agencies involved in this debate. They clam-up and stay mute. Rather, one would have thought that it should be easy for them to make a justification for this practice. After, all they own media independents, printing companies, digital agencies, PR companies etc.

If clients belive that a one-stop shop provides the best value, and competitiveness is not in their best interests, and that the best results and price is delivered in such a manner, there is no case.

However, one wonders why clients are.now starting to put this process of bidding for production work through their procurement, and best cost processes.

Is there something they’ve noticed? Interesting discussion though. Lets see how many agency people contribute?

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