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. 

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