The transition to decentralized creation of advertising content has transformed how some brands approach creative workflows, moving away from the traditional “agency of record” model, where one primary agency is responsible for managing a brand's overarching advertising strategy and execution. While this practice allows for access to a wider range of creative ideas and greater agility to meet the ever-increasing demand for content, it also introduces challenges in creative rights tracking and license compliance. As brands juggle multi-agency management, new complexities have come to the forefront that make effective advertising Business Affairs strategies more critical than ever.
What is the “agency of record” model in advertising?
The traditional agency of record (AOR) model in advertising is rooted in the 1960s "Mad Men” era and involves a single agency managing all aspects of a brand's advertising and marketing communications under long-term contracts. This model features exclusive partnerships with annual retainers, offering full-service creative, production, and media capabilities while acting as strategic brand guardians. Historically focused on mass media like TV, print, and radio, the AOR serves as the brand's official representative, ensuring consistency across campaigns. Over time, the model has evolved, spinning off the media strategy and buying service into their own “media agencies.” With the rise of digital transformation and client demand for flexibility, an "advertiser-led" approach has grown that emphasizes strategic oversight while integrating specialized partner agencies and adopting more agile, adaptable structures.
What is the trend of decentralized production of advertising content?
Decentralized production of advertising content is a significant departure from the traditional AOR model. Known as "decoupling" and fueled by digital transformation and the demand for personalized, multi-platform content, this shift means that rather than depending on a single agency, brands collaborate with multiple partners with specialized expertise in areas like digital content creation, platform-specific adjustments, and real-time updates. Although this model can offer benefits in flexibility and cost efficiency, it also introduces challenges in coordinating workflows, managing creative rights, and preserving brand cohesion across multiple vendors, highlighting the importance of effective advertising rights management and multi-agency collaboration.
What types of companies does an advertiser collaborate with in a decentralized model?
In a decentralized ad production model, advertisers collaborate with a wide range of external partners, each bringing specialized expertise to different aspects of a campaign. Each creative agency may handle specific components, such as broadcast and online through one agency and experiential and influencer work through another. Advertisers desiring more sophisticated content may rely on production specialists, including independent production companies, creative editorial houses, and visual effects companies, while a media buying agency manages the placement of ads across various channels. Advertisers also work with channel-specific partners like social media agencies, digital advertising firms, and content marketing specialists to ensure campaigns are tailored to each platform. Additionally, regional marketing partners may be involved in localized efforts. In this structure, each partner operates independently within their area of expertise, coordinating with the brand’s marketing team to ensure alignment and consistency across the campaign.
What challenges do advertisers face when managing a decentralized approach to ad production?
One of the primary risks in this model is managing rights across multiple partners, which can lead to penalties for the incorrect use of licensed elements outside of their approved scope. Additionally, the involvement of numerous creative partners can create brand consistency issues, such as inconsistent messaging and a fragmented brand identity across different platforms. Coordinating with multiple vendors also presents operational difficulties, including managing various workflows and approval processes, and maintaining effective communication. Quality control can suffer as well, with varying production standards among partners, leading to inconsistent delivery standards. All these factors make it harder to maintain oversight and ensure cohesive campaign execution.
What can advertisers do to help ensure success with a decentralized approach?
Advertisers should not underestimate the importance of the role that Business Affairs plays in mitigating issues at every stage from pre-production to the ongoing use of the content. In addition to effectively managing rights and licenses across multiple agencies and creative partners, Business Affairs can also establish processes and workflows that support all types of content creation. Utilizing platforms like our TTC Online Talent & Rights Management system can help track licensed elements and prevent asset misuse, avoiding costly penalties. Additionally, advertisers should establish clear, standardized operating processes for all creative partners, ensuring consistent workflows, approval processes, and quality control checkpoints to reduce brand inconsistencies and licensing errors. Implementing digital tools, such as rights management systems, digital asset management platforms, and campaign tracking solutions, can streamline operations and provide real-time oversight. Maintaining central governance with unified brand guidelines and clear communication protocols helps balance control with flexibility, especially when supported by transparent reporting structures and performance metrics.
Adopting a balanced, strategic approach
Adopting a decentralized approach to ad production can offer advantages in flexibility and specialization, but it also introduces complexities in rights management, brand consistency, and operational coordination. Advertisers who pursue this approach can mitigate some of these risks by leveraging Business Affairs partnerships, utilizing advanced rights management platforms, and standardizing processes across creative partners.
Interested in learning more about Business Affairs solutions or how the TTC Online Talent & Rights Management system can help you track talent and licensed element rights? Reach out to us at BATalent@castandcrew.com.
