For many years, the advertising agency sector was lacking in dynamism and was a vulnerable target of criticism from advertisers and media. This unfortunate condition has sustained an unwanted professional and business indifference that later posed a clear need for reforms and discipline within the sector.

In a country like the Philippines, the advertising appropriation is limited. Over a hundred advertising agencies were fighting each other for a share of this minimal advertising budget. People who had no business at all to form an advertising agency thought it was an easy way to make a living. Many opportunists venture into the business without any knowledge of even the basic principles of marketing or the techniques of advertising. They did not realize the tremendous responsibilities of an advertising agency toward clients, media and the consuming public. Worse still, they were not adequately capitalized, thus, impairing completely their operations. The resultant situation almost ruined the reputation of the entire advertising industry; the misdeeds of some undeservedly created a bad impression of the whole.

The 15% commission an advertising agency gets can hardly support a full service agency with services from account management, media buying, market research, creative, production, art, radio, and TV, and collateral services. A world expert, writing in Advertising Age, once said that if Advertising agency nets one percent of its total annual billing, it would be lucky indeed. As a result, a full-service advertising agency cannot realize a profit if it's advertising billing is less than a certain minimum yearly amount. Usually, it must support its operations by engaging in collaterals services such as public relations and merchandising.

With the inception of a new society thru the declaration of the Martial Law on September 21, 1972, it was the policy announced by President Marcos that the private sector must exercise self-discipline. Accordingly, the President issued a decree establishing the Philippine Council for Print Media and the Broadcast Media Council as self-regulating bodies to discipline the erring members of the mass communications industry. The advertising agency sector, which also needed to be disciplined, was left to fend for itself.

Advertising is a pillar of mass communications and as such must depend on solid and workable organizational and operation foundations. In affirmation of this need, the Association of Philippine Advertising Agencies (APAA) and the Lapian ng mga Adbertaysing Praktisyoner na, Pilipino sa Ikauunlad ng Sambayanan (LAPPIS) merged into a single body, the Association of Accredited Advertising Agencies ? Philippines (4As-P). Primarily, its objective is to get the cooperation of the PCPM, BMC, the Print Media Organization (PRIMO) and the Kapisanan ng mga Brodkaster sa Pilipinas (KBP) and the advertisers to eliminate the undesirable agencies and to effect reforms within its ranks.

In an organizational meeting held on July 6, 1977 at the Manila Polo Club, the two bodies unanimously elected the author to lead the organization during its most difficult first year. They also unanimously elected the following officers and directors: Antonio P. Zorilla, President; Luis J. Morales, Vice-President; Lyle K. Little, Secretary; Luisita G. David, Treasurer; and Maximo B. Ramos, Jr., Corporate Comptroller and Tony Cantero, Quintin Pastrana and Emil Misa as Directors.

The Association needed a strong hand not only to protect the advertising agency sector but also to work for the benefit of the entire industry, country and, secondly, of the entire advertising industry and the consuming public. The Chairman announced that he would seek the support of Brig. Gen. Hans M. Menzi, Chairman of the Philippine Council for Print Media (PCPM), Mr. Teodoro F. Valencia, Chairman of the Broadcast Media Council (BMC), the Kapisanan ng mga Brodkaster sa Pilipinas (KBP) and the Print Media Organization (PRIMO). Ina gesture of support and cooperation, these bodies promised full backing to promote understanding and good business practices among all those engaged in the advertising industry.

As an initial measure, the 4As-P announced that a paid-up capital P 100,000 is now required of any advertising agency, if it must become a member of the 4As-P and must abide by the Code of Ethics of the Philippine Board of Advertising (PBA) to which all the members of the different advertising industry association have representatives. IT was also announced that all the members of the 4As-P will be screened together with new applicants with the cooperation of the PRIMO, the KBP, PCPM and BMC.

Concomitantly, it became a policy of the PCPM and the BMC that all obligations must be paid within a certain deadline on the part of everyone concerned, whether it be an advertiser, an advertising agency or a member of the media sector.

Broadcast Media Council Chairman T.F. Valencia publicly announced that the KBP would not recognize any agency, which does not ultimately become a member of the 4As-P and, therefore, cannot operate since it would not be entitled to the standard commission. Brig. Gen. H.M Menzi, as Chairman of the PCPM, said that his organization would cooperate with the 4As-P in all matters that would benefit the entire advertising industry.