● The short answer
Media markup is when an agency charges you more for ad space than it actually paid the platform or publisher and keeps the difference. It can be disclosed or hidden, and it often appears alongside a management fee. Ask any agency directly whether it marks up media, and request the platform's own invoices or account access so you can see actual spend.
Key takeaways
- Media markup is a margin an agency adds to the price of the ad space it buys for you.
- A 2016 ANA-commissioned study found non-transparent practices, including rebates, pervasive in US media buying.
- Disclosed markup can be a legitimate pricing model; hidden markup is the problem.
How media markup works
When an agency buys ads for you, there are two separate costs: the media (what Google, Meta, a streaming service or a publisher charges) and the agency's fee for its work. Media markup blurs the line. The agency bills you for media at a higher price than it paid and keeps the margin, sometimes on top of a stated management fee.
Markup can take several forms:
- A percentage added to platform spend, billed through the agency's own ad account.
- Bundled "media packages" priced at a flat rate, where you cannot see what the media actually cost.
- Principal-based buying, where the agency buys inventory for itself and resells it to clients at a higher price.
- Undisclosed rebates, where media sellers pay money back to the agency based on volume.
The how is where we come in.
What we walk through with you, for your business:
- Is this actually a problem?
- Questions to ask any agency
- Our position
Every business is different, so the plan is too. Tell us where you want to show up and we will show you what it takes.
Talk to usMore questions
How can I tell if my agency is marking up media?
Ask for admin access to the ad accounts and compare spend in the platform with what you are invoiced. If the account is billed to the agency's card, ask for the platform invoices. For programmatic or CTV, request a breakdown of media cost, platform fees and agency fees. A mismatch you cannot explain warrants a direct question.
Is markup more common in some channels?
It is easiest to hide where pricing is less visible: programmatic, CTV, traditional media buys like radio and outdoor, and bundled packages. In self-serve platforms like Google Ads and Meta, if you own the account and pay directly, markup on media is essentially impossible. That is one reason account ownership matters.
Sources
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