Media budget
The amount paid directly to advertising platforms for ad delivery; separate from agency or management fees.
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Why it matters
Keeping media spend and management fees separate when planning the budget lets you calculate real cost and return correctly. Having the media spend paid by the business that owns the ad account also ensures the account and its data stay with the business. The budget should be large enough to allow for the learning period.
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Example
A business sets a monthly advertising budget of 30,000: it pays 24,000 directly to the platform with its own card, and 6,000 is the agency's management fee. That way it can see the advertising return both against media spend alone and against the total cost.
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Common mistake
Having the ad account opened in the agency's name and paying media through the agency. When the relationship ends, the account and historical data may not stay with the business.
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Related terms
Related services and guides
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