What Does The Ethical Advertising Process Look Like?

Traditional advertising agencies make most of their profit by placing media on which they earn 15% commission. The more a client spends on media the more profitable the agency becomes. Another way agencies make money is through creative fees associated with projects such as website development and ad campaigns. The more projects carried out--the more profit for the agency. This model creates a conflict of interest between agency and client because, even though a client may become more profitable through the use of media and projects, the agency always profits. Thus, most agencies have agendas that are not always in alignment with their clients' profitability objectives.

I believe in a different model. Ethical advertising involves the integration of marketing consulting and business development strategies that lead the way to selecting the most profitable advertising products for the client. The client retains the agency to review their business goals, help plan growth, obtain quality market research, and gain awareness of competitor's marketing efforts. A mutually agreed upon monthly retainer fee effectively places the agency on the inside of the client's business and commits the agency to generating profit not only expenses. The agency then creates and is compensated for advertising vehicles on a per project basis including standard industry commission. If they fail to make the client more profitable within the term of the contract, they can be dismissed. Under this model, both companies are on the same side and this can to lead very long, trusted and mutually profitable relationships.