DIGIWARA / INSIGHTS
Media spend vs agency fees: what is the difference?
Understanding how ad budgets and professional service fees contribute to a marketing plan.
THE PRACTICAL VIEW
Media budget funds distribution
Advertising spend purchases reach, clicks or other media delivery directly through the relevant platform.
Agency fees cover professional work
Fees generally reflect planning, setup, creative coordination, tracking, optimisation and reporting within an agreed scope.
Third-party costs need separate treatment
Talent, production, locations, software and other external costs should be identified before approval.
Agree on scope and accountability
Write down deliverables, payment terms, account access, reporting and how results will be assessed.
These notes are general guidance. Channel and budget decisions should be based on the situation and data of each business.
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