‘It’s made out to be a cardinal sin’: Marketers’ view on principal-based media trading
With principal-based media – the process of media agencies purchasing media inventory and reselling it to clients at a higher rate – reportedly on the rise, some caution against it while others see potential cost savings.
A strategy used by media agencies to boost profits has advertisers divided over its ethics and value. Principal-based media – also called proprietary, inventory, or opt-in media – involves media agencies purchasing media inventory, usually in bulk quantities, and reselling it to clients at a higher rate.
While not a new approach, the use of principal media is on the rise, particularly among agency-holding companies seeking to increase profits. ISBA’s director of agency services, Nick Louisson, argues that the approach can ultimately incentivise agencies to prioritise their own interests over those of advertisers.
