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The bright and dark sides of value co-creation using generative AI: A survey of decision-makers in German advertising, communication and media agencies
Journal of Brand Strategy,
14
(1),
53-71
(2025)
Abstract
Artificial intelligence (AI) is reshaping advertising, communication and media agencies, enhancing operational efficiency and creativity. These agencies, central to the media business and brand management across all industries, have transitioned from their traditional roles to digital marketing consultants, with AI significantly influencing this evolution in co-creating value. At the same time, AI also bears the risk of co-destruction. This paper examines AI’s current deployment, and its potential future impact based on a survey of 108 decision-makers from German agencies. Results show varied AI adoption across different types of agencies and specific aspects of the overall value creation process, while the orchestration of AI deployment still appears to be in an experimental stage. Decision-makers see enormous further opportunities and also warn of challenges. AI is seen to have already had a strong impact on productivity and is also likely to lead to substantial job losses in the future.
Keywords: artificial intelligence; advertising; brand management; agencies; value co-creation; value co-destruction; service-dominant logic
The full article is available to subscribers to the journal.
Author's Biography
Castulus Kolo is the President of the Macromedia University of Applied Sciences, where he is also a professor of media management. He holds a doctorate in physics, earned through research at CERN, Geneva, and an additional doctorate in social anthropology from the Ludwig Maximilian University of Munich. After extensive practice in applied research with the Fraunhofer Society, he gained management experience in strategy consulting and as a board member of a publisher’s digital venture. Generally, his publications are focused on preconditions, diffusion and effects of media innovations. His current research focuses on the impact of artificial intelligence on the creative industries. He is a board member of the International Media Management Academic Association and the President of the European Media Management Association.
Tamara Ranner is a professor of media management at the Macromedia University of Applied Sciences. She is an expert in instructional design as well as digital teaching and learning. She earned her PhD at Zeppelin University, where her dissertation focused on the implementation of media didactic innovations in practise. After completing her doctorate, Ranner worked as a senior manager for e-learning at Sky Deutschland Fernsehen GmbH & Co. KG, where she was responsible for the introduction and continuous development of digital learning in customer service. At the Macromedia University of Applied Sciences, she developed and oversaw the expansion of online degree programmes and the blended learning concept mPower. Her current research focuses on the impact of artificial intelligence in various fields, especially in higher education.
Melanie Herfort is an interim professor of marketing at the Hochschule der Medien, Stuttgart. She lectures on topics such as marketing, digital marketing, media marketing, innovation in marketing and responsibility management. She holds a doctorate from the University of Bayreuth, where her research focused on the co-creation and co-destruction of value in the media agency industry. Her research interests include media management, advertising agencies and business-to-business marketing. Melanie has almost 20 years of experience working within the media entertainment industry, including her role as senior manager of marketing and communications (EMEA) at Warner Bros. Discovery.
Dirk Kleine is an expert in artificial intelligence (AI) and the Founder of NextGen Experiences, a consultancy dedicated to advising organisations on the adoption of AI. He is also an associate partner at the energy factory St. Gallen, where he focuses on the impact of AI on leadership and corporate transformation. Additionally, he serves as an honorary professor at the Macromedia University of Applied Sciences, where he lectures on AI and innovation, and as a senior lecturer at the University of St. Gallen, specialising in leadership and human resource management. Dirk completed his business administration studies in Mannheim, Vienna and Lancaster, and earned his doctorate at the University of St. Gallen. He started his career as a strategy consultant at Bosch Siemens Home Appliances and later held senior executive roles at ProSiebenSat.1 Media AG and Microsoft.
