• by Maarten Albarda , Featured Contributor, Yesterday

The Association of National Advertisers released its latest report on principal media this week. If you have been following my columns here for the last few years, you know I have a... let's call it a "complicated" relationship with this topic. I have warned about the erosion of the agency-as-agent model and the slippery slope of arbitrage. But I also recognize that for some advertisers, under the right circumstances, principal media might, could, maybe, possibly offer benefits. Maybe.

The report, called "The Continued Acceleration of Principal Media," is a follow-up from the ANA’s initial report on the topic, published in May of 2024. It reports that 58% of marketers used principal media in the past year, a jump from 47% in 2024.

Forrester predicts that by the end of this year, a full third of all media agency billings will be principal-based. That makes it a standard pillar of agency profitability.

In context, let’s look at the Omnicom/IPG merger. That deal effectively doubled the new entity's media buying power. When you have that much scale, you aren't just an "agent" anymore; you are a market maker.

So, the slope has slipped. But what the ANA 2026 edition of this report also reveals is that, while marketers are becoming more familiar with the monster, they are also getting lazier about guarding the door.

Apparently, "familiarity" with principal media is creating a worrisome kind of complacency. We now have 96% of marketers saying they are familiar with principal media, up from 87%. We understand that the agency is acting as a retailer, buying inventory and reselling it to us at a markup.

Despite this awareness, the use of actual guidelines to manage the beast has decreased from 62% to 57%. So, while the practice becomes more widespread, formal oversight is shrinking. A full 90% of marketers are worried that the media being recommended to them is in the agency’s best interest, not theirs (coming from 79% in the previous study). And 43% of marketers are essentially saying, "I'm pretty sure my agency is force-feeding me inventory they need to move, but... hey, look at that low CPM!"

Seventy-six percent of marketers say low cost is the top benefit. And in a world where procurement is squeezing every cent out of agency fees, I get the lure for agencies, too. Agencies are bundling their fees into the media price to make "non-working" costs disappear (on paper). It makes the CFO happy, but it makes the audit far more difficult (and in the case of some agency contracts, impossible).

So, what should you do? First, stop treating your agency like a traditional partner when they are working like a vendor. If they are selling you "owned" inventory, the rules of engagement must change. Only 63 % of marketers have contracts that address principal media. If yours doesn't, you're essentially giving your agency a blank check. Instead, start with the ANA’s Master Media Buying Services template, which is included in the report.

Require senior-level sign-off (CMO or head of media) for every principal buy. And demand options. Never accept a plan that is 100% principal media. Your agency should always provide a transparent alternative so you can see exactly what you are trading away for that "reduced cost."

Now that we have slipped on the slope, marketers must ensure that it works for them -- and not just for the agency's shareholders.