Forrester’s latest research finds principal media is becoming a permanent feature of modern media buying, urging transparency to reduce industry tension.
A long-running debate in the marketing and media industries is unlikely to end anytime soon. According to a new report from Forrester, the use of principal media is no longer a temporary trend or workaround but a lasting part of the media buying ecosystem.
The report, published on January 15, concludes that despite criticism from some advertisers and publishers, principal media has become embedded in how agencies manage cost pressures and revenue expectations. Rather than calling for its elimination, Forrester argues the industry should focus on improving how the practice is disclosed and governed.
As media budgets tighten and performance demands grow, the research suggests principal media is increasingly viewed as a practical solution, even if it remains controversial.
Why principal media divides the industry
Principal media refers to the practice where agencies buy media inventory and then resell it to clients at a margin that is not always disclosed. Critics argue this creates conflicts of interest and undermines trust. Supporters counter that it enables agencies to secure better rates, manage risk, and deliver value in an increasingly complex advertising market.
Forrester’s report acknowledges both sides of the debate. It notes that tensions often arise because advertisers fear losing visibility into where their money goes, while agencies face growing pressure to protect margins amid rising operational costs.
According to the analysts, principal media has moved from being an exception to a normalized commercial model driven by economic reality rather than preference.
Transparency seen as the pressure valve
Rather than framing principal media as inherently problematic, the report emphasizes transparency as the key to reducing friction. Forrester argues that clearer communication around pricing structures, inventory ownership, and performance expectations can help advertisers, agencies, and publishers coexist more effectively.
The research suggests that when brands understand how principal media arrangements work, including where value is created and where margins sit, trust improves and disputes decline. This approach challenges the long-standing assumption that secrecy is necessary for principal media to function.
A business necessity, not a passing phase
The report was authored by Jay Pattisall, vice president and senior agency analyst at Forrester, alongside principal analyst Kelsey Chickering and senior analyst Evelyn Mitchell-Wolf.
In the report’s introduction, the authors describe principal media as a “business necessity” shaped by financial pressure across the advertising ecosystem. They note that advertisers are demanding more results for less spend, while agencies are being pushed to deliver innovation without corresponding increases in fees.
In that environment, principal media has become a structural response rather than a tactical choice.
What it means for marketers, agencies, and publishers
For marketers, the report advises a more pragmatic approach. Instead of rejecting principal media outright, brands are encouraged to set clearer expectations, ask direct questions, and define acceptable levels of transparency in contracts.
Agencies, meanwhile, are urged to modernize how they explain principal media arrangements, positioning them as strategic tools rather than opaque revenue levers. For publishers, the research suggests adapting to a market where agencies increasingly act as both buyers and resellers, reshaping traditional demand relationships.
A shift in the conversation
Forrester’s conclusion signals a shift away from debating whether principal media should exist toward focusing on how it should operate. As financial pressures continue to shape media buying, the report suggests the industry’s challenge is not eliminating the model but making it more sustainable and trustworthy.
In that sense, principal media is no longer framed as an uncomfortable anomaly. Instead, it is being recognized as a defining feature of modern advertising economics, one that the industry will need to manage rather than resist.