Purpose This paper aims to determine the dimensions of service quality of advertising agencies and their effects on relationship quality between an advertising agency and their clients through the social and economic exchange.

Design/methodology/approach The intention was to target firms which use the services of an advertising or marketing solutions agency; hence, participants were recruited from a business database service providing details for key decision makers in Australia and New Zealand. An online survey was used in this study.

Findings Creative competence, project management processes and project outcome influenced relationship quality through value and interpersonal relationships. However, only creativity had a significant direct relationship with relationship quality.

Practical implications Although creativity plays a major role in relationship development, agencies must have efficient and effective project management processes in place to ensure successful project completion within timeline and budget to be able to maintain ongoing relationships with their clients.

Originality/value The research draws upon literature from three key disciplines, service quality, relationship marketing and project management, to address the gaps in the current literature related to customer relationship management in the B2B client–agency context.