The study analyzes the creativity– business model innovation relationship and its impact on financial performance of the firm in the context of advertising industry where there are limited opportunities for process or product innovation. Using moderated mediation model, it is argued that creativity positively affect the business model innovation. Also, business model innovation improves the firm financial performance. Thus, business model innovation mediates the relationship between creativity and financial performance of the firm. Moreover, business group affiliation moderates the impact of business model innovation on firm performance. The results from panel dataset largely support the proposed model. The study contributes to the literature on creativity and business model innovation.