Many small to medium clients beleive that Agencies 'Mark up" media when they place it. They therefore may opt to deal direct with the media organization thinking they are cutting out the middle man. This is for the majority of media channels is completely incorrect.
Above and beyond offering the 'same' costings as going direct, agencies generally have stronger buying power in that they are dealing with the media on a regular basis and in most cases be buying more than just your space at that time.
In fact, in addition to potential better costings the client also gains by having the agency select the most appropriate media for their particular communication objectives. When dealing direct it is impossible to get impartial advice from the publisher since they have their own business interests to meet, not yours. An agency on the other hand only has your interests in mind when they choose a media channel for you. Since success of the campaign will dictate whether you keep them on as an agency.
It simply comes down to the fundamentals of the business interests of each party. On which the media is not capable of being earnest, nor are they able to offer lower cost.
Mike
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