Why the Ad-Spend Markup Agency Model is Broken and What to Do About It.
Would you rather spend your marketing dollars on ads, or on content that’s created to optimize lasting brand connection? There is an existing conflict in the ad world that is forcing many organizations into ad spend that is out of balance. Because the economy is good right now, I feel like no one is paying attention and I want to start the conversation.
We all know that conflicts of interest are never a good thing. This is because the conflict makes it impossible to make an objectively good decision and someone always loses when they shouldn’t have to. I see one of the most common agency models to be caught in the middle of a MAJOR conflict of interest and I think it’s time we talk about it.
Agencies who charge a “management fee” which is a percentage of the ad spend, are incentivized to spend your ad dollars where you could (and should) be spending brand development dollars.
When the economy changes, the brand-tax bill is going to come due and I’m hoping I can help more businesses avoid it.