The article highlights the growing trend among major holding company agencies, such as Publicis and Omnicom, of engaging in principal media buying while increasingly avoiding the term 'agency' in contracts with clients. This shift alters the contractual relationship between agencies and clients, as agencies no longer act merely as agents but as principals, directly purchasing and reselling media inventory. This evolution suggests a significant transformation in the media buying landscape where transparency and client understanding are crucial, yet many clients remain unaware of these changes.
"Legally, contractually, most of the big media contracts have gotten rid of the word 'agent'... They can't say they're the agent if they're doing principal buying."
"We don’t (nor have we ever) categorize our principal buying as an 'agency' because agency connotes acting as an 'agent' for the client."
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