As AI-generated content accelerates across the media landscape, authenticity and trust have become more valuable than ever. Consumers are increasingly turning to influencers for perspectives that feel real, relatable, and grounded in lived experience. As a result, influencer marketing continues to stand out as a uniquely human solution—driving credibility, cultural relevance, and meaningful connections with audiences.
In this webinar, Harmelin explores how influencer marketing has evolved into a powerful media channel within modern media plans. You’ll learn how influencers drive impact across the full funnel—from awareness to conversion—while enhancing efficiency and performance across the broader media mix.
Media Magnified
The Tool of the Century Is Here. How Will You Use It?
On March 27th, 2026, marketers, executives, and students came together at the University at Buffalo to talk about one big question facing our industry right now: How are people actually using AI?
What stood out wasn’t hype or panic, but real examples from people in vastly different roles using the same tool in very different ways. The takeaway was simple: AI doesn’t care who you are or what your title is. What matters is how you choose to use it.
AI is, without a doubt, changing the world as we know it — closing doors, but also opening new opportunities. There is a lot of excitement, fear, and most of all uncertainty.
So, how are marketers using this disruptive tech?
When it comes to the use of AI in marketing, think of it as a tool, an assistant, NOT a flawless shortcut. AI is agnostic. It does not care about or know who is giving the prompts, the status of that person, how long they have worked in their industry, or if they are a CEO, manager, analyst, or intern. For this reason, it is important to develop skills around AI, while also maintaining a strong foundational understanding or skillset based around your given industry.
The quality of your prompt determines the outcome quality. Can a high schooler develop the next big app that the world adopts from their garage for $20 a month? Yes! Can a CEO of a small company capture the majority market share of their industry by using AI more effectively because of their decades of knowledge, hard work, and experience in their field? Yes!
Real World Examples
One of the speakers at the conference was Terry Ameno, Director of Packing and Design at Buffalo Games. He spoke about how he uses AI to help create designs for the packaging of Buffalo Games’ products. Now, for a fraction of the cost and time he can create and alter designs from scratch or from actual photos that he already has. But, with his decades of experience, he has the eye to feed the AI quality prompts for more effective results. He no longer needs a professional photographer, which is unfortunate for the photographer. But remember, AI presents opportunities too. Maybe the loss of business from Terry isn’t so bad because the photographers can now save on the cost of a website by coding their own with an LLM!
Another speaker, Ron Ferri, President of Tops Markets, has deeply integrated AI into the Tops workforce. In the Western New York Region, Tops owns the highest market share of grocers. Part of their success derives from personalized marketing from AI for:
- Weekly flyers
- Merchandising and assortment
- Pricing and promotions
- Demand forecasting
- Task automation
- And much more
In fact, Tops has a ChatGPT Champions program designed to help employees exceed and excel individually and for the organization. Tops believes that “responsible AI is non-negotiable.”
Another presentation was delivered by students of UB’s School of Management program. They used LLMs to find gaps in a local coffee shop’s (Toasted) marketing plan, using AI for market research, planning, strategy creation, and an implementation roadmap. What’s even more impressive is that these young students discovered many pitfalls of blindly trusting AI without checking and quickly implemented guardrails and checks to further enhance their research. This is a critical precaution to take with this new technology.
Alex Monaco, Expert Associate Partner at Bain & Company, is an agency-side marketer who is carefully tracking the best uses of AI to prepare her teams for success. She has found success in a particularly important way in the developing AI era. Alex retains the human touch in her marketing strategy while reinforcing strong branding and credibility for the AI algorithms to pick up on. Internally, Alex encourages her team to use AI for productivity, research, recommendations, measurement, operations, and to workshop ideas. The final product is still the result of experts using their industry knowledge and experience to facilitate strong brand presence.
Retaining the Human Element
We all know that everyone is rushing into AI. However, there is an undeniable need for human connection that we all feel. During the conference panel session, one of the topics for the panelists was to provide advice for young people or those who were worried about AI replacing them. The panelists — Joe Frick, Senior Vice President of Growth at Goodway Group; John Coles, Vice President of Data Science and Analytics at ACV Auctions; Karen Stuhlmiller, Head of Data Management and the AI Center of Excellence at M&T Bank; and Scott Kessler, EVP and Chief Information Officer at Northeast Grocery — all shared a similar response. They encouraged everyone, especially young people, to:
- Continue to learn in-depth skills
- Learn interpersonal and communication skills effectively
- Become adept at public speaking
- Be capable and competent with AI
You know… the things that helped people excel before AI!
The main takeaway from the conference was the importance of developing workflows and operating systems around AI for entire teams, not just individual use. Ron Ferri summarized this feeling simply in his presentation by saying that because of fragmented datasets, talent shortages, and legacy tech debt, “Tech is 20% of the challenge. Operating model is 80% of the challenge.” Teams that effectively use this new technology will likely have a competitive edge over those who don’t. This raises the question: The tool of the century is here; how will you use it?
For more information, visit harmelin.com, or connect with us on LinkedIn or Facebook.
April 2026 QSR Trends: Value, Labor, Loyalty, and Credibility Redefine QSR Growth Today
This month’s QSR update examines how savings-first loyalty, performance-based pay, beverage-led innovation, and everyday food credibility are collectively reshaping growth strategies across QSR and adjacent foodservice channels.
QSR loyalty programs are increasingly driven by consumers’ desire to save money, not perks or exclusive experiences. Discounts and free items matter far more than traditional “loyalty” benefits, reflecting a more price-sensitive, transactional mindset among customers.
Loyalty Programs Driven by Savings
eMarketer highlights a clear shift in how consumers view QSR loyalty programs: they are no longer about status, exclusivity, or brand affinity, but about saving money. Based on a recent Alchemer survey, 85% of loyalty members say cost savings are the primary reason they join, with discounts (82%) and free items (77%) also ranking highly — far ahead of perks like exclusive menu access. This signals a fundamental reframing of loyalty programs from “engagement tools” to practical financial tools in an era of heightened cost sensitivity.
Additionally, delivering clear, tangible value is critical not just for sign-ups, but for sustained engagement as well. Consumers will only keep using these programs if rewards are easy to understand, quick to redeem, and immediately beneficial. However, many programs continue to fall short. Common frustrations include expiring points (35%), app glitches (27%), irrelevant offers (26%), and overly complex systems. These issues erode trust and make loyalty programs feel more like work than reward, undermining their intended purpose.
From an industry perspective, the implication is straightforward but challenging: QSR brands must prioritize simplicity and savings over gamification or aspirational perks. The traditional idea of loyalty, built on emotional connection or exclusivity, is being replaced by a more transactional mindset. Consumers are willing to switch programs if better deals are available, reinforcing that “loyalty” is increasingly conditional and price-driven rather than brand-driven.
This trend reflects broader economic and behavioral shifts. As inflation and cost-of-living pressures persist, consumers are treating loyalty programs less like memberships and more like discount mechanisms embedded in everyday spending. That creates a paradox for brands: loyalty programs are more important than ever, yet less effective at building true loyalty. The winners will likely be those who accept this reality — designing programs that deliver immediate, frictionless value — while strategically using the data collected to rebuild deeper relationships over time.
Source: QSR Loyalty Program Members Primarily Want to Save Money, Not Perks
Starbucks is restructuring its U.S. employee pay to include more performance-based incentives, tips, and faster pay cycles. The move aims to improve store performance and employee motivation but raises concerns about income stability and fairness.
Starbucks Shifts to Performance-Based Pay
Starbucks’ restructuring of its U.S. employee compensation system reflects a broader strategic shift toward performance-driven pay and operational alignment. The company is introducing a mix of quarterly bonuses (up to $1,200 annually), expanded tipping options, and a move to weekly pay, all designed to give hourly workers more immediate and variable earning opportunities. These changes are closely linked to store-level performance metrics like sales, efficiency, and customer experience, signaling a stronger link between employee pay and business outcomes.
The initiative is part of Starbucks’ larger “Back to Starbucks” turnaround strategy, which aims to improve service quality and restore growth. By aligning compensation with performance, the company is betting that better-paid, more motivated employees will deliver faster service and stronger customer experience, ultimately driving revenue. The addition of more tipping channels and faster pay cycles also responds directly to employee feedback, suggesting Starbucks is trying to balance corporate goals with worker needs.
However, the model is not without tension. Because bonuses depend on store performance rather than individual effort, some employees and labor advocates argue that much of the additional pay is outside workers’ direct control, especially in environments affected by staffing levels or location-specific demand. This raises questions about fairness and whether the system will truly improve morale, particularly amid ongoing union activity and concerns over wages and scheduling.
This move highlights a growing trend in QSR and retail: shifting compensation from fixed wages to variable, incentive-based earnings tied to operational KPIs. While this can drive efficiency and align teams with business goals, it risks making income less predictable and reinforcing a transactional employer-employee relationship. Starbucks may see short-term gains in performance and customer experience, but long-term success will depend on whether employees feel genuinely rewarded or simply pressured to deliver more for unclear return.
Source: Starbucks Restructures Employee Compensation System in the US
KFC is testing innovative, customizable beverages through its Saucy concept to drive differentiation and customer engagement. The move highlights how drinks are becoming a key growth and experimentation area for QSR brands.
Custom Beverages Drive QSR Innovation
KFC is using its “Saucy” concept as a testing ground for menu innovation, specifically through a new beverage partnership with Pepsi. By introducing “Drips by Pepsi,” a line of customizable, trend-driven “dirty sodas,” KFC is expanding beyond traditional food offerings to create a more experiential menu. These drinks combine familiar soda bases with bold add-ins like fruit syrups, boba, creams, and spices, tapping into viral beverage trends and offering something distinct from standard fountain drinks.
A key takeaway is that beverages are becoming a strategic growth lever, not just an add-on. Historically overlooked in QSR, drinks are now being repositioned as high-margin, highly customizable products that can drive incremental traffic and differentiation. The Saucy concept, which is already centered around sauces and flavor experimentation, provides a natural platform for this kind of innovation, allowing KFC to test bold ideas in a smaller, more flexible format before potentially scaling them more broadly.
The partnership also reflects a deeper collaboration between brands like KFC and Pepsi to create exclusive, co-branded menu items that can’t be found anywhere else. Limited availability (only at Saucy locations) adds an additional sense of exclusivity and urgency, while unique flavor combinations — like jalapeño-infused Mountain Dew or caramel-chocolate Pepsi — are designed to generate buzz and social media engagement. This mirrors a broader industry trend where chains use limited-time or location-specific offerings to drive trial and brand excitement.
This move underscores how QSR brands are increasingly competing on experience and novelty, not just core menu items. Beverages in particular are becoming a low-risk way to experiment with trends and capture younger, social media-driven consumers. The challenge will be balancing innovation with scalability. What works as a niche, viral product in a test concept doesn’t always translate system wide. Still, if successful, this strategy could reposition drinks as one of the most important battlegrounds in fast food.
Source: Saucy by KFC Adds Drips by Pepsi Beverages to Menu
The US convenience store foodservice market is growing, but long-term gains hinge on strengthening credibility, clearly communicating value, and embedding foodservice into everyday consumer routines rather than relying on incidental, fuel-led visits. Success will depend less on novelty and more on consistently proving that c‑stores can deliver reliable, quality food that competes with established quick-service options while preserving speed and convenience.
C-Store Growth Requires Everyday Credibility
The US convenience store foodservice (c‑store FS) market continues to grow steadily, reaching $78.1bn in 2026, with momentum expected to continue through the end of the decade. However, growth is occurring in a far more deliberate consumer environment. Financial caution, entrenched routines, and value scrutiny mean that most c‑store visits remain transactional and fuel-led, not food-led. While convenience and affordability remain strong equities, they do not automatically translate into consideration for meals or prepared food, especially when QSRs still dominate default “away-from-home” occasions. As a result, the next phase of growth is less about expansion or novelty and more about earning credibility within everyday routines through clearer quality and value justification.
Consumers today are largely “playing it safe” with c‑store FS, gravitating toward familiar staples like coffee, baked goods, pizza, and sandwiches, which align with speed-oriented decision-making and low-risk choices. Younger consumers show greater openness to experimentation, customization, and premium cues, but only when those offerings feel competitive, recognizable, and affordable. Importantly, the data shows that desired improvements skew heavily toward fundamentals (higher quality, better value, consistency) rather than advanced features or broad menu expansion. This suggests that c‑store FS credibility remains fragile. Consumers may notice improvements, but not enough to consistently displace QSRs as a primary meal destination.
From an opportunity standpoint, beverages emerge as the most accessible lever for incremental growth. Coffee and cold beverages benefit from habitual behavior and lend themselves naturally to customization, bundling, and viral flavor moments (e.g., dirty soda, cold brews, specialty add-ins). Digital tools, like order-ahead, frictionless pickup, or loyalty integration, also stand out as critical enablers, particularly for younger consumers who equate convenience with seamlessness, not just proximity. These tools don’t need to be disruptive; rather, they should help integrate foodservice into already-existing trips, turning incidental visits into intentional, food-inclusive ones.
It’s clear that c‑store FS doesn’t need reinvention — it needs discipline. Operators that try to “out-innovate” QSRs with complexity risk undermining the very convenience they’re known for. The winners will be those who tighten execution, elevate visual and freshness cues, and position food and beverage as a reliable, repeatable part of routine life. In short, the opportunity for growth is real, but it will be unlocked through credibility, consistency, and everyday relevance, not bold one-off ideas. If c‑stores can become a trusted default for coffee, snacks, and select meals, food-led growth will follow organically.
Source: Mintel analysis, Convenience Store Foodservice – US – 2026, February 2026
For more information, visit harmelin.com, or connect with us on LinkedIn or Facebook.
The Future of Marketing Is Orchestration, Not Automation: Takeaways from the ANA Media Conference
In late March, I was honored to join fellow media professionals, marketers, and a few former colleagues in Nashville for the annual ANA Media Conference. The conversations were wide-ranging, but a few ideas kept surfacing around data, control, AI, and how quickly consumer behavior is evolving.
The acceleration of AI adoption was impossible to ignore. It brings enormous opportunity, helping marketers get better answers faster and uncover deeper insights than ever before. But it also introduces real risk. If left unchecked and allowed to operate without human oversight and intention, AI can lead marketers down a path that feels productive on the surface but is ultimately disconnected from real people. It can create the illusion of progress in the short term while quietly pulling brands further away from meaningful human connection.
What stood out wasn’t any single trend, but a growing realization that the systems we’ve relied on for years are starting to show their limits and, in many cases, becoming too complex. As a result, in our effort to automate complexity, the way we plan, execute, optimize, and measure media now runs the real risk of drifting out of alignment with how consumers make decisions. Below is a perspective on those shifts, along with a set of practical suggestions for how marketers and agencies can stay ahead in a more complex, fast-moving environment.
Control Is Moving Back to the Marketer
Transparency and independence are becoming strategic advantages, not just operational preferences.
Platforms are essential, but they are not neutral. They optimize toward their own desired outcomes, which can create misalignment with advertiser goals. As complexity increases across programmatic, retail media, and AI-driven buying, visibility becomes harder to maintain. This is driving a renewed need for control — not by stepping away from these systems, but by engaging them more deliberately and with greater accountability:
- Connect CRM, martech, and adtech into a unified ecosystem
- Increase visibility into programmatic supply chains and partners
- Demand transparency and accountability from platforms and vendors
- Prioritize independent, outcome-driven decision-making
Control today is less about ownership of tools and more about clarity of decisions. Marketers should prioritize agency partners that are transparent in how they operate and structurally aligned to act in the client’s best interest. Clients should demand that their agencies commit to a fiduciary standard ahead of agency shareholder value.
Data Readiness Is the Real Advantage
Clean, connected data is becoming the foundation for effective AI and better decision-making.
The conversation around data is shifting from volume to usability. Having more data is no longer the differentiator; being able to organize, connect, and act on it is. As AI becomes more embedded in planning and execution, the quality of data inputs directly impacts the quality of outcomes. Organizations that invest in strong data foundations are better positioned to move faster and make better decisions by:
- Focusing on clean, structured, and connected data environments
- Starting with business problems before applying technology
- Prioritizing decision quality over speed alone
- Enabling interoperability across platforms
Data readiness is becoming a true competitive advantage. Marketers should look for agency partners with more than just a strong data capability. They need to have an agency operating system that is built around data and the ability to turn complex data into clear, actionable insights that drive better decisions.
The Funnel Is Collapsing into Moments
Consumer decision-making is happening faster, closer together, and within fewer touchpoints.
The traditional awareness-to-consideration-to-action framework is becoming less reflective of reality. Consumers are discovering, evaluating, and purchasing within the same experience, often on the same device. This compression of the journey means value is increasingly won at the moment of choice. Marketing systems must evolve to reflect how decisions occur:
- Shift from channel-based planning to behavior-based design
- Optimize for moments of decision rather than stages
- Align measurement to real consumer actions and outcomes
- Incorporate local and contextual signals
In a world where consumer data is being obfuscated, geography is a strong and persistent signal. A local-first perspective becomes especially valuable here. Marketers should seek agency partners who can translate national strategy into hyper-local, behavior-driven execution that reflects how decisions are made in real markets.
Efficiency Alone Doesn’t Drive Growth
Optimizing for cost without considering impact will limit real business outcomes.
Efficiency has long been treated as a proxy for effectiveness. Lower CPMs and higher ROAS have often defined success. However, these metrics can mask whether marketing is driving incremental growth. In many cases, higher-quality environments deliver stronger outcomes, even at a higher cost. The focus is shifting from minimizing spending to maximizing impact:
- Moving from ROAS to incrementality
- Balancing scale, efficient reach, and precision targeting
- Investing in premium environments that drive engagement
- Reducing waste through better visibility
Growth requires a more nuanced view of performance. Marketers should partner with agencies that are objective in their planning approach and focused on driving true business outcomes, not just optimizing platform-reported metrics.
AI Is Changing Everything, Except What Matters Most
Technology is accelerating execution, but human connection remains the differentiator.
AI is transforming how marketing is executed, from planning to measurement to optimization. It removes friction and increases speed. However, it still struggles with emotional resonance, storytelling, and cultural nuance, all of which influence how people decide. As content volume increases, the ability to create meaningful, human-centered experiences becomes more important:
- Use AI to streamline workflows and improve efficiency
- Maintain human oversight in strategy and creative
- Focus on emotion and storytelling
- Close the gap between insight and action
AI will reshape the industry, but it will not replace human insight. Marketers should look for agency partners that balance advanced technology with strategic thinking and innovation, ensuring that automation enhances rather than replaces human connection.
Final Thoughts
The industry has spent years refining optimization, improving performance within existing systems. What is emerging now is the need to rethink those systems altogether. Orchestration is about designing how data, media, content, and commerce work together in a cohesive way. It reflects a more integrated, behavior-driven approach that aligns strategy with execution.
For agencies and marketers, a few priorities seem clear:
- Build measurement around real business outcomes
- Design systems based on behavior, not channels
- Invest in data foundations and interoperability
- Demand transparency across the ecosystem
- Balance scale, efficiency, and precision
- Keep human connection at the center
The industry does not need more dashboards. It needs better systems. The organizations that lead will be those that combine independent thinking, transparency, and agility with a deep understanding of technology and human behavior.
For more information, visit harmelin.com, or connect with us on LinkedIn or Facebook.
From Signals to Storytelling: Key Takeaways from IAB NewFronts 2026
At this year’s IAB NewFronts 2026 in New York City, Megan Woods and Brandon Turner experienced firsthand how platforms are redefining performance marketing. Across presentations from Reddit, Meta, and LinkedIn, one theme was clear: success today requires a balance of strong data foundations, cultural relevance, and authentic storytelling.
1. Strong Data = Stronger Performance
A major takeaway from Reddit’s “The Performance Era” presentation is that performance starts with signal quality. While many advertisers have historically turned to Reddit for awareness and brand-building, the platform is rapidly evolving into a powerful direct response driver. Implementing tools like the Reddit Pixel and Conversions API ensures advertisers can capture high-quality data, even in a privacy-first environment. These signals power everything from reporting and attribution to retargeting and optimization.
For advertisers, the implication is simple: your tech stack matters more than ever. Without strong data connections, even the best creative or targeting strategy will fall short. Investing in clean, consistent data pipelines is now essential for driving efficient conversions.
2. Smarter Targeting Beats Broader Targeting
Reddit also emphasized the power of keyword targeting, noting it can drive up to 60% lower CPAs compared to interest-based approaches. By tapping into real-time intent signals (what users are actively searching and discussing), brands can reach high-intent audiences more effectively.
This aligns with a broader industry shift: moving from passive audience assumptions to active intent-based engagement. Advertisers should think beyond static audience segments and lean into contextual and behavioral signals to improve performance.
3. Culture Is the New Context
From Meta’s NewFronts presentation, one of the most compelling updates was the expansion of Reels Trending Ads, allowing brands to align with major cultural moments — from Fashion Week to NFL games. This reinforces a critical shift: ads perform better when they show up where culture is happening.
Additionally, Meta’s investments in creator marketplaces and partnership tools make it easier for brands to collaborate with voices that already resonate with audiences. The takeaway? Brands don’t create culture; they participate in it.
4. Creative Scale Meets Authenticity
AI-driven creative tools were another major highlight, with Meta exploring generative video, voiceovers, and avatar-led content to scale production. At the same time, platforms stressed that scale cannot come at the expense of authenticity.
This point was driven home by LinkedIn’s CMO, Jessica Jensen, who noted that in a world flooded with AI-generated content, “the brands that stand out are the ones that still feel real.” Whether through creators, employees, or executives, human storytelling remains a competitive advantage.
5. Full-Funnel Video Is No Longer Optional
LinkedIn made a compelling case for full-funnel video strategies, particularly in complex B2B environments. Video must now do more than drive awareness. It needs to influence consideration and deliver measurable business outcomes.
With solutions like BrandLink and expanded CTV capabilities, LinkedIn is enabling advertisers to connect storytelling with performance. The data reinforces this shift, showing significantly higher pipeline impact and efficiency when video is sustained across the customer journey.
What This Means for Harmelin Clients and Advertisers
The biggest takeaway from NewFronts 2026 is that performance marketing is no longer just about optimization; it is also about integration:
- Data + Signals power smarter automation
- Targeting + Context improve efficiency
- Creative + Culture drive engagement
- Video + Measurement deliver business outcomes
For our advertisers, success will come from embracing this holistic approach. The brands that win won’t simply optimize campaigns; they will build ecosystems where data, creativity, and culture work together seamlessly.
For more information, visit harmelin.com, or connect with us on LinkedIn or Facebook.
An Open Letter to Advertisers: The Risks of Principal Media Buying
Let’s talk about something the media industry would rather keep quiet.
Two practices are quietly reshaping how media gets bought in America — and neither is good for advertisers. The first is principal-based buying. The second is the pocketing of vendor rebates. Both have been around in various forms for years. Both are growing. And both represent a fundamental conflict of interest that every brand marketer deserves to understand.
We’ve Been Here Before
In 2016, the Association of National Advertisers commissioned an independent investigation by K2 Intelligence into media transparency practices. What they found was striking: non-transparent business practices, including undisclosed cash rebates paid by media companies to agencies, were pervasive in the media buying ecosystem. Not occasional. Not isolated. Pervasive.
Senior executives at big agencies and holding companies were not only aware of these practices — they mandated them. Rebates flowed to agencies as cash, free inventory credits, and sham “service agreements” designed to obscure what were, in effect, kickbacks. Of the 41 sources who confirmed rebate activity, 34 said those rebates were never disclosed to advertisers and never passed back.
As an agency focused on transparency, the K2 report was fantastic for our business, firming up existing relationships and earning us new clients. But it left a dark mark on the media industry. The press called it “RebateGate.” There was outrage, updated contract templates from the ANA, and pledges of reform. Then, gradually, it faded from the headlines.
The Problem Didn’t Go Away… It Got Bigger
Fast-forward to today, and principal-based buying is not just back — it’s booming. Here’s how it works: rather than acting as an agent buying media on your behalf, the agency (or its holding company) purchases media inventory in bulk for its own account, then resells it to you at a markup. The agency is no longer your advocate. It’s your vendor. The markup can range from 10% to 90%, depending on the arrangement. You often have no right to audit it. In many cases, you may not even know it’s happening — a 2024 ANA survey found that nearly half of marketers weren’t fully familiar with the practice, and some had signed contracts permitting principal buying without realizing it.
The holding companies pushing this model hardest are now saying the quiet part out loud: it’s about profit margins. GroupM’s principal media revenue recently surpassed $1 billion annually. Publicis and Omnicom have each built principal trading businesses worth billions in revenue. This is happening in an environment where 90% of marketers cite uncertainty over whether media recommended is in their best interest, according to a 2026 ANA survey.
The conflict of interest here is not subtle. When your agency owns the inventory it’s recommending to you, its financial interest is to move that inventory — not necessarily to find you the best placement at the best price. The inventory that earns the agency the greatest return may not be the inventory that earns you the greatest return. Those are not the same thing, and pretending otherwise is dishonest.
Vendor rebates layer another conflict on top. When a media company pays your agency a fee — in cash, in inventory, or in any other form — to direct spend their way, your agency now has a financial incentive to favor that vendor over others. Again: their interest and your interest have diverged.
Why This Should Matter to You
The question worth asking your agency is a simple one: Are you acting as my agent, or as a principal? And if the answer involves any version of “both”… be skeptical.
An agency earning undisclosed rebates from a media vendor cannot objectively evaluate whether that vendor deserves your money. An agency reselling inventory it owns at an undisclosed markup cannot objectively advise you on whether to buy that inventory. These aren’t hypothetical ethical concerns. They are direct, structural conflicts of interest baked into the business model.
There are legitimate arguments that principal buying, done transparently and with full disclosure, can occasionally benefit an advertiser through lower CPMs or guaranteed outcomes. We don’t dismiss that entirely. But “done transparently” is doing a lot of work in that sentence — and transparency is precisely what these arrangements tend to lack. Consider an out-of-category example: your financial advisor quietly owns shares in every fund they’re recommending to you, but assures you it’s fine because they disclosed it somewhere in the contract you signed. How quickly would you find a new financial advisor? The media business deserves the same standard.
What the Industry Should Expect — And Advertisers Should Demand
Transparency in media buying isn’t a premium feature. It’s a baseline obligation.
Your agency should earn revenue from exactly one source: the transparent fees you agree to pay them. Any benefit received from a media vendor — cash, inventory, services, or anything else of value — should be fully passed back to clients, not the agency’s bottom line. Media should be bought on your behalf, as your agent, with your interests as the only variable being optimized.
If your agency also acts as a media principal — buying inventory for its own account and reselling it to you — you should know the details, understand the markup, and have the right to audit the transaction. Anything short of that isn’t a business arrangement. It’s a blind spot.
These standards can make purely transparent agencies appear more expensive at first glance. It’s worth looking closer. Client audits show that when all costs are surfaced, significantly more of the advertiser’s budget reaches actual working media with a transparent agency than with one whose real margin lives elsewhere in the supply chain.
We believe this should be how everyone operates. Until it is, it’s worth knowing the difference.
Harmelin Media is an independent, full-service media agency headquartered in suburban Philadelphia. We work exclusively as an agent for our clients, and have been serving advertisers with transparent, client-first media strategy and activation for almost 45 years. Reach out to us at Harmelin.com, or via email to mmeder@harmelin.com .
For more information, visit harmelin.com, or connect with us on LinkedIn or Facebook.
