Whether you’re launching a new campaign or creating that must-see explainer video, one question often comes up: Should we work with an agency or a studio? They might sound similar, but agencies and studios have different strengths, team sizes, and budgets. We’ll break down what makes each unique, how to decide what’s right for you, and why (spoiler alert!) studios often come out as the best choice for specific projects.
What’s the Deal with Agencies and Studios?
First, let’s clarify what we’re talking about. Agencies are usually larger companies that handle a broad spectrum of marketing needs: ad campaigns, brand strategy, content creation, digital advertising, and yes, video production too. They’re like the Swiss Army knife of the creative world—packed with tools and ready for any project, with a comprehensive focus.
Studios focus on production and creation, often specializing in things like animation, video, and design. Think of studios as experts who live and breathe visual storytelling and craft. These are specialists with deep knowledge and skill. Both are great, but understanding their differences helps you decide which one will give you the most impact without blowing your budget.
Team Size and Specialization: Who’s Working on Your Project?
One of the biggest differences between agencies and studios is team size and structure. This impacts everything from cost to collaboration. An agency typically has a bigger team with broader skills. Their team typically includes strategists, account managers, designers, copywriters, and more. That means you’re getting an entire ecosystem, which is ideal if you need full-service support across marketing and communications.
Since agencies cover so many areas, you might not get super-specialized expertise in a single area, like animation or video production. They’re generalist, which is perfect for some projects, but it may not be ideal if you’re looking for a refined, high-quality production piece.
Agencies & Studios will also assign a dedicated account manager to act as a go-between with the creative team, which can be helpful. It’s important to consider the level of expertise of the account manager as studios will tend to have someone who has a background in design and animation while an agency will use someone who is more sales-driven.
Agencies & studios often work together. Agencies will typically contract a studio to assist in certain areas like video production or 3D Animation. McDonald’s Canada in 2024, contracted an agency to create this video but the agency contracted Alfredo Films to handle the production of the commercial.
The commercial, ‘Fun Times in Canadaville with the Grinch’ was produced by Alfredo Films, in assistance by the Wieden + Kennedy agency.
Studios are usually smaller, with a core team of animators, video editors, designers and other creatives who specialize in producing high-quality visuals. They’re not handling ad strategy or SEO – they’re all in on making your video look amazing. If your goal is to focus on the creative or ROI, then a studio can offer better results.
Because studios are smaller, they tend to manage only a handful of projects at one time which means a more white-glove approach where you may be the only project they’re working on. With fewer layers, studios offer direct access to the creative team, which means direct collaboration, deeper understanding on both sides and often quicker turnaround times. You’ll have a more hands-on experience with the people working on your project.
For those who are looking for more specialized work, studios often attract specialists who are laser-focused on one area, like animation or 3D design. This concentration of expertise can make a huge difference in the final quality of your project.
The NASA Harvest AFI Award Winner video is an example of when a studio of core animators, and video editors are tasked with telling your story through animation. – Source: Hello Adventure Animation
The Budget Breakdown: What Size of Project Fits Where?
Next, let’s talk about the budget. Your choice here can impact what you get for your money, so knowing how each option typically stacks up in terms of cost can help you maximize your investment.
Agencies have higher fees, thanks to their larger teams and broader services. WIth overhead for account managers, strategists, and a broader range of skills, the cost structure tends to be higher when compared to studios that have smaller teams.
If you’re looking for an all-inclusive campaign, where digital strategy, social media, branding, and a video – agencies can bundle services together which can help reduce costs for larger, multifaceted campaigns. While an agency’s broad approach can be valuable, if you’re focused only on video or animation – you might be paying for services you don’t actually need.
Studios are usually more competitively priced, especially if you’re only looking for a video. Most studios will adjust pricing based on project scope, so you can have more flexibility to prioritize your budget around specific needs like animation quality, length, or additional effects.
If you need a high-quality video but don’t need the strategic extras, a studio gives you the focused expertise without the extra overhead, making your investment more targeted and often more efficient.
The Creative Process: Flexibility and Control
The way your project develops, from kickoff to final product, can look different depending on whether you go with an agency or a studio. Let’s explore how that creative journey might look.
Agencies bring in strategists who spend time understanding your brand and objectives. This makes agencies a great fit if you’re starting from scratch and need the strategy side dialed in before production even starts. With multiple stakeholders in each stage, you can expect more perspectives but also more rounds of edits which might extend timelines.
An agency can be ideal if you’re running a multi-channel campaign or need support in areas outside of production, like brand positioning or content strategy.
Studios are focused on production, which means they’re ready to dive into visuals, motion, and storytelling. With a smaller team, you often work directly with the creatives, keeping feedback cycles shorter and communication clearer. Since studios are leaner, they’re often quicker on the draw when it comes to executing and finalizing your project. What may take 4-5 months for an agency can be accomplished in half of the time with a studio.
With a direct and collaborative process, studios can deliver quality visuals efficiently, ideal if you have a tight timeline.
Choosing the Best Option: Key Questions to Ask
Still not sure which one is right for you? Here’s a quick checklist to guide your decision:
What’s the scope of your project? If you’re looking for a full campaign with strategy, go with an agency. For visual storytelling or production only, a studio is likely your best bet.
What’s your budget? Studios generally offer lower costs for video projects, while agencies offer bundled services that could save you money if you need multiple campaign elements.
How hands-on do you want to be? Studios tend to give you more direct access to the creatives, which is perfect if you want a more collaborative approach. Agencies offer structure and oversight but might not offer hands-on access with the production team.
How important is specialization? If you want expert-level production and high performing videos, studios offer specialized skills that agencies might not be able to match.
The Takeaway: Why Studios Often Win for Visual Projects
At the end of the day, both agencies and studios have their strengths. Agencies are best for a full-scale marketing approach, combining strategy and production. But if your main goal is a standout video or animation piece, studios are hard to beat. They’re nimble, more specialized, budget-friendly and agencies often collaborate with studios to produce their clients videos, so you may be working with a studio either way, but with a very different price tag.
The studio process allows you to go deep on the creative process, building a direct relationship with the artists and designers who’ll make your vision come to life. And for projects where you want control, speed, and creativity, studios offer a streamlined approach that keeps the focus where it should be: on delivering an incredible final product.
The choice comes down to your specific goals, but if you’re looking to make a big impact with a well-crafted visual project, a studio might just be your best ally.