What Marketers Need to Know When Their Agencies Act as ‘Principals’

Principal-based trading is ‘everywhere,’ industry observers say. Marketers need to define their comfort level with the practice

Agencies that secure ad space for marketers are increasingly buying inventory and taking ownership of the media they then resell to those clients, versus buying it on behalf of that marketer as an agent.

The industry debates its value

Advertisers may want their agencies to buy on principal because it helps them access the data products that some tech platforms offer only to those that spend enough, according to Ashwini Karandikar, executive vice president of media, technology and data at the advertising agency trade association 4A’s.

“In those cases, I actually fully support not having an audit, as long as the agency met the brand objectives,” 4A’s’ Karandikar said.

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