A study of the relationship between the African American-owned advertising agancy and the U.S. advertising industry

The purpose of this study was to examine, through individual interviews with executives of both African American-owned and general market advertising agencies, how they perceive the relationship between the African American-owned advertising agency and the U.S. advertising industry.

Participants were chosen from full-service firms listed in the 1998 Standard Directory of Advertising Agencies that handle accounts for the leading national advertisers. All African American-owned agencies specialize in creating advertising primarily to black American consumers.

Response indicated that while several people were involved in the advertising process, it is the client, either the company president alone or as head of a search committee, who ultimately made the decision to use an African American-owned agency. Several factors contributed to the lack of full participation by these agencies in the industry, but the most repeated responses were: being limited to tailoring communications only to black American consumers, and the industry's dealing indirectly with the basic issues of race and cultural racism in America.

The study also showed that the outlook for the advertising agency that specializes in reaching African American audiences is not very promising. However, with global advertising spending predicted to reach half a trillion dollars by the millennium, the future of the advertising agency, that can relate to and understand diverse audiences, create effective, quality advertising, and is owned by an African American, is full of promise.