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Production April 30, 2025 4 min read

Production Company, Ad Agency, or Studio — What's the Difference?

Production company vs ad agency vs studio

When a brand decides to produce a commercial, the first question is usually: who do we call? The terminology — production company, ad agency, studio — is used loosely enough in the industry that brands often aren't sure what they're actually buying. Here's what each one means in practice.

Ad agency

An ad agency handles strategy, creative development, and media planning. When a brand hires an agency for a campaign, the agency develops the concept, writes the script, and manages the creative process through to delivery. The agency then commissions a production company to actually shoot and produce the film.

What the agency does not usually do: physically produce the film. They manage the process. The director, crew, equipment, and post-production are hired by the production company.

The agency model makes sense when a brand needs both creative strategy and execution managed in one relationship. It adds a layer of cost — agency mark-up on production is standard — but also adds creative direction and client management.

Production company

A production company manages the physical production of a film — crew, equipment, locations, casting, logistics, and post-production. They bring on directors either as staff or on a project basis. They do not typically develop the original campaign concept (though some do), but they execute it.

Working directly with a production company is common when the brand already has a creative concept or has worked with the agency separately to develop one. It removes the agency layer and is generally more cost-efficient for straightforward productions.

A production company's core skill is execution: getting the right people on set, on budget, on time, and delivering the film.

Studio

"Studio" is used several ways. In a traditional sense, a studio is a physical space — a shooting stage. But the term is also used by smaller production operations that handle end-to-end work: creative, production, and post, often for digital-first content.

A content studio typically operates faster and at lower cost than a full production company, but with smaller scale. They're appropriate for social content, product films, and campaigns where speed and cost efficiency matter more than broadcast production values.

Which one to use

The overlap between these categories is increasing. Many production companies now offer creative development. Some agencies have in-house production. Some studios do broadcast-quality work. The terms matter less than understanding what the specific company actually does and what they've produced before.

If you want to build the right visual production model for your brand, PAM Istanbul manages the whole process from brief to delivery.

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