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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryAdtech & ProgrammaticPrincipal-Based Buying (Principal Media)

Adtech & Programmatic

Principal-Based Buying (Principal Media)

An agency model where the agency buys inventory for its own account and resells it to clients at a markup instead of buying as agent.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Appears in Lesson 9 of Programmatic 101

Short answer

Principal-based buying is an agency model in which the agency purchases media inventory for its own account and resells it to clients at a markup, rather than buying as the client's agent. It can offer lower prices through bulk purchasing. Critics note it reduces transparency, since clients may not see underlying costs or margins.