The statement that smaller advertising agencies will continue to play an important role despite the creation of larger agencies suggests that they can be helpful and are not always replaced by larger firms. The other statements are not true - advertising agencies may be more expensive than doing advertising work in-house (A), may or may not require long-term contracts (B), and typically expect compensation beyond just media commission (D).

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Advertising Agencies

Question 276

Multiple Choice

Advertising agencies

A) can be helpful, but they are always more expensive than a firm doing its own advertising work.
B) must be selected very carefully since most agencies require long-term contracts.
C) that are smaller in size will probably continue to play an important role despite the creation of mega-agencies.
D) usually don't cost local retailers anything to use, since the media commission is usually all the compensation the agency expects.
E) None of the above is true.

Correct Answer: