"Account ownership is not just about control. It is primarily a question of financial logistics, risk and legal responsibility. The real issue is not ownership. It is who carries the risk when something goes wrong."
"When it comes to paid media services, agencies are effectively financial advisors. They consult on what to spend and where, then execute with the client's approval. There are two ways this is controlled: using the client's existing ad account or using an agency-owned ad account."
"Common causes of overspending include a decimal missed in the budget, a lifetime budget entered as a daily budget, miscommunications or typos between teams, and a budget misallocated to the wrong account."
"These are not edge cases. They are routine operational failures that happen as teams scale, become siloed and involve more hands in the work. Safeguards exist, but they can be bypassed through miscommunication or human error."
Agencies can manage ad spend through client-owned or agency-owned accounts. Client-owned accounts place financial responsibility on clients, while agency-owned accounts shift risk to the agency. Common causes of overspending include budget miscalculations and miscommunications. Operational failures often arise as teams scale and become siloed. Safeguards can be bypassed due to human error, leading to significant financial implications. The real concern is who bears the risk when issues occur, highlighting the importance of clear communication and accountability in ad management.
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