Maximizing ROI in Media Buying: An Agency’s Take on Negotiations

The digital advertising landscape is a game of high stakes. With market share on the line and ongoing scrutiny over marketing budgets, brands must ensure an effective return on media investments. 

Digital advertising agencies are strategic partners during media negotiations, helping brands get the best bang for their buck by leaving no stone unturned. Here are the negotiating tactics your agency partner should employ to ensure that your marketing dollars work harder and smarter.

Acting as stewards of your brand’s budget

Taking media negotiations as a serious matter should go unsaid. As such, an agency partner should treat a brand’s budget with the utmost respect.

“I approach every negotiation as if spending my own money,” Lisa Purpura, VP of Advertising at Closed Loop, explains. In domains with large advertising budgets and high expectations, a mindset focused on achieving the strongest holistic return on ad spend is necessary when setting the foundation for negotiations. 

“Approaching media negotiations as if it’s your own money cultivates a mindset of stringent value assessment,” Purpura states. A seasoned agency partner enters negotiations with a clear, detailed plan, knowing exactly what to ask for and expecting to negotiate to a middle ground.

Ensuring alignment with your brand’s goals for media buying

An agency should align media negotiations with a brand’s larger business objectives. Media buys need to reflect directly on goals, especially when ROI is under ongoing scrutiny. Doing so gives room to know what to negotiate specifically.

For example, an aligned agency could negotiate top placement if a company aims to beat out its market leader. An agency could negotiate pricing for media buying if driving efficiency is a priority. Moreover, an agency might negotiate value-adds like market research if a brand wants to understand the market better.

An astute agency partner should look to drive meaningful results and effective placements. Agencies can only determine or provide value with this alignment.

“We ensure alignment with brands, from the initial discovery call to quarterly chats, to ensure we are in lockstep and working aggressively toward their success,” said Laurel Galloway, Sr. VP of Advertising at Closed Loop. “Alignment on budget, target audience and goals is foundational to making the right decisions for clients, including getting added value in a tight marketplace. 

Conversely, an agency should be clear and upfront with vendors about what they want and the client’s goals to enhance optimal negotiations. 

Setting clear objectives and strategic demands

An expert media negotiator should be well-prepared. Knowing the publisher, understanding the competitive landscape and industry rates, and setting clear expectations lead to effective negotiations.

Detailing your demands, such as specifying OTT/CTV units or ensuring content placement on a website, also ensures negotiation clarity and effectiveness. Listing demands in order of priority is another technique that can be used in complex negotiations.

Moreover, always asking for more than what you expect to receive is the gold standard, as negotiations often meet somewhere in the middle. Galloway emphasizes, “We typically drive savings between 15 to 30% on the original stated price through media negotiations, often receiving added value line items to our buys. We pass these savings directly to clients.”

Maintaining a brand’s goals and maximizing ROI should always be the top priority. Walking away should always be on the table during negotiations if a brand’s best interest is not upheld. A skilled agency advocate will always have multiple vendor options. What one vendor won’t do, another will.

Understanding negotiation boundaries and building vendor relationships

Awareness of the parameters within negotiations is paramount to understanding what opportunities and limitations are at play when conducting media buys. Your agency partner should know what can and cannot be negotiated, and this, of course, will vary by vendor. Experienced agencies know these boundaries and leverage this insight to secure the best deals for clients.

Building strong vendor relationships is also mission-critical to driving better outcomes and additional value for brands. A strategic agency should invest significant time in cultivating existing relationships and foraging new ones.

Maximizing value, not just cost savings

Your agency should understand the nuances of the deal in strategic media negotiations. “It’s about more than just the bottom dollar; it’s about aligning with the client’s strategic goals and extracting maximum value from each transaction,” Purpura explains.  

As such, the added value should be unique to each brand’s strategy. 

For instance, negotiating with vendors to cover fees can significantly reduce costs and allow more budget to be allocated to actual advertising. This approach resonates well with resource-sensitive brands. Purpura shares strategies like making vendors cover technology fees to avoid fraudulent inventory and asking for specific, high-quality media placements rather than settling for less desirable options. 

Navigating market hype with discernment

In a sales model often based on commission, the publishing landscape is filled with jargon and inflated promises. A competent agency partner should navigate your brand through market hype, critically evaluating vendor claims and media opportunities to ensure that what is presented aligns with reality.

Purpura emphasizes, “It’s crucial to cut through the noise and ensure that every claim by a vendor is substantiated, safeguarding our clients from overhyped offerings. We scrutinize every detail, from proposed inventory to projected outcomes, to ensure our clients invest in genuine, high-value opportunities.” 

Your agency partner should know each vendor’s capabilities and how their advertised “proprietary AI” technology works. This vigilance is why brands need agencies that understand the landscape and are committed to genuine transparency and effective advocacy.

Continuous advocacy and flexibility

Negotiations for media buys should not be a one-time event but a process that extends across the entire lifecycle of a media buy. “It never ends until the buy is over,” says Purpura. “Any errors or shifts in performance metrics should trigger a renegotiation to optimize the terms and conditions continuously.” 

A persistent approach to negotiation reinforces a brand client’s interests and that their campaigns remain agile and responsive to market dynamics. In recent years, shifting market conditions in hindsight of COVID-19, social unrest and economic tides have transformed how agencies approach media buying on behalf of brands. 

Now, more than ever, brands need an advocate to help accommodate changing advertising needs during spending and strategy adjustments. A strong agency partner should be flexible and skilled at long-term and short-term planning, honing in on stable yet agile media partnerships that drive results even during market volatility. 

A dynamic and detailed approach

Brands that desire to thrive in today’s marketplace during media buys need a trusted agency partner who understands the importance of foresight, meticulous preparation and ongoing client engagement. The role of a digital advertising agency extends beyond facilitating media buying. An agency should be a vigilant guardian of your budget, strategic advisor and relentless negotiator.

“CMOs are under increasing pressure to make every dollar count, improve the bottom line and justify marketing investment,” said Galloway. “Agencies must step up as trusted stewards of their clients’ budgets, working tirelessly to find savings, drive efficiencies and propel their businesses forward.”

As pressure on marketing budgets intensifies, brand leaders should choose partners who focus on the details — driving effectiveness, value and adaptability rather than reach and network. Only a client-centric, dynamic agency partner will help brands secure better business outcomes.