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This paper explores the processes of restructuring in the UK advertising industry. Its core concern is with changes in advertising practice in creative advertising agencies. It explores how creativity is manifest as 'peer regard'. It 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 25 years. The paper highlights a changing governance of advertising practice that involves both formal regulation and economic governance in and across firms. The paper argues that creativity is better seen as an effect rather than a cause of particular advertising practices. The paper concludes that the 'creative governance' of the UK advertising industry has favoured a close-knit and co-located community of firms. A change in this form of governance could change this pattern.

Advertising and Creativity, a Governance Approach: A Case Study of Creative Agencies in London