Credit: Julius Drost via Unsplash
Principal media, where agencies act as the middle man buying and selling media, is accelerating and reshaping the economics for advertisers, agencies and publishers, according to research by global consultancy Forrester.
The study, Make Principal Media Principled Media, uncovers several truths that challenge industry assumptions.
The practice has drawn criticism because of the lack of transparency when agencies purchase inventory at undisclosed discounts and resell it to advertisers.
Critics claim this opacity creates a conflict of interest between an advertiser and its agency while also raising quality concerns over discounted inventory purchased in bulk.
However, Forrester says principal media has emerged as a solution to shrinking marketing budgets, offering advertisers a pathway to reduce costs and mitigate risks.
“Principal media isn’t a loophole, it’s the inevitable outcome of an industry addicted to efficiency and under relentless budget pressure,” said Jay Pattisall, VP, principal analyst, and co-author of the report.
“Despite the controversy, principal media has become a business mainstay because it delivers what CMOs need most: predictable costs, guaranteed outcomes, and budget relief.
“Agencies are using principal media as an economic lifeline to subsidise under-priced services in an AI‑pressured fee environment.
“The real shift isn’t toward cheaper CPMs, it’s toward outcome‑guaranteed buying that mitigates advertiser risk.”
The Forrester study says companies can secure media placements at rates up to 10% below market standards while maintaining strategic flexibility.
The study finds that principal media is a growing practice, with 47% of marketers already using it and 81% of US B2C marketing executives planning to increase its use in 2026.
Forrester says that for agencies and publishers, principal media has become an economic lifeline. It allows agencies to generate additional revenue margins and provides media owners with guaranteed sales and access to exclusive opportunities they might not otherwise obtain.
However, Forrester argues that transparency is crucial for making principal media work effectively. Advertisers should update contracts to demand operational transparency, set spending caps (10% to 20% of total media budget), and maintain consistent performance metrics across all media buying.
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