Agency Management Fees vs Media Spend: What You’re Really Paying For
Quick take
- If you can’t separate media spend from agency services, you can’t compare proposals properly.
- A low “headline fee” often turns into higher costs elsewhere (changes, reporting, trafficking, production).
- The goal is commercial clarity: line-by-line, plain English, and no surprises.
What is media spend?
Media spend is the money that goes to publishers and platforms to run your ads (TV networks, radio stations, outdoor suppliers, publishers, Google, Meta, etc.).
What are agency services?
Agency services are what you pay for the work around the media, such as:
- optimisation (where applicable)
Why small businesses get caught out
Common reasons:
- proposals bundle everything into one number
- “admin” or “service” lines aren’t scoped
- fees appear later (changes, reporting, trafficking)
- the business assumes media spend includes everything
The clean way to compare proposals (simple checklist)
Ask for a one-page commercial summary:
- agency services (what’s included)
- production/creative (if any)
- other costs (tags, trafficking, reporting, printing)
Then ask: what’s included vs excluded?
What does “management fee free” mean (where applicable)?
In some models, planning/buying/reporting is management fee free / no additional management fee for the agreed scope, because the agency is paid via standard publisher commission.
Always confirm:
- which channels it applies to
- what’s included in the scope
Red flags to watch for
- Bundled totals with no breakdown
- Vague “service” lines with no scope
- Fees that only appear after you sign
- Reporting that’s confusing and doesn’t lead to actions
Recommended Further Reading
How to Spot Hidden Fees in Advertising (and What to Ask Before You Sign)
Questions to Ask Before Hiring a Media Buying Agency (Small Business Checklist)
Signs Your Advertising Agency Isn’t Built for Small Business Growth
If you want commercial clarity — and a plan you can actually measure — get in touch and we’ll map the right channels, markets and minimum viable weight without the jargon. We’re here to help. Get in Touch.