An advertising agreement portrays an important role between a provider of the products, service, or a brand and an advertiser providing the space, time, or service to promote those goods or services.

It is drafted to keep clarity between both parties regarding the advertising process, payment, service duration, and other details discussed in the meeting. With so many promises to keep up, it is advisable to create an advertising agreement to make everything clearer and easier.

What Is an Advertising Agreement?

An advertising agreement is a mutually signed document between the advertising service provider and the company or individual willing to receive it to promote the goods and services.

This agreement describes in detail what kind of service is provided, for what period and at what cost. It also involves intellectual property being created through advertising and who will own these properties.

It is crucial to create this agreement and both parties need to mutually agree on its terms and conditions.

Why Do I Need an Advertising Agreement?

To deal professionally in the business world, an agreement is a must for maintaining a long term relationship. Having an advertising agreement is necessary for the following reasons:

  • The agreement helps to clear any current or future misunderstanding regarding both the parties' demands, responsibilities, and expectations.
  • It guarantees the security of the deal set between both the parties and generates respect.
  • It ensures that the execution of the promised services and the payment is timely completed.
  • In the case of advertising or payment disputes, this agreement shall be used as evidence.
  • The agreement protects both parties' resources and intellectual property.

However, the agreement is the most pertinent legal document to build trust, credibility, and legibility in professional work. The parties shall create their agreement by referring to the document at their disposal.

So, moving forward, understand what all needs to be included in the agreement.

What Should Be Included in an Advertising Agreement?

Here are a few pointers which could be relevant to different kinds of advertising agreement:

Precise Information

The agreement shall include the details of the company and the area it operates in, information regarding the product or service which shall be advertised by the hired agency, company’s website if any.

Advertiser’s Responsibilities

The advertiser shall provide the information on the tools which shall be used in advertising. Whether it is billboard advertising, social media ads, SEO, PPC, video ads, radio ads or magazine ads, the details of everything shall be provided.

It also mentioned what all platforms or tools are prohibited for advertisers.


With respect to the services, the company agrees to pay a certain amount to the advertisers. The last date of the payment and the number of times the payment will be done is also mentioned.


The agency shall commence the project on the predetermined date and stop the work in certain circumstances.

For instance, the company fails to provide the payment under the provisions of the agreement. Or the company demands more than the decided or the agency is not been able to fulfill the company’s expectations.


Both parties shall provide their consent that they are not aware of anything which shall have an adverse effect on their performance or respective obligations.

The agency shall provide the warranty that they will use the listed tools and shall not compromise with the work quality. The advertiser shall stop the advertising services from their end if any written instructions are given by the company.


The parties agree that any information obtained during the scope of their meeting, discussions, or in preparation for an advertising agreement shall be kept confidential from the third party.

The advertiser needs to provide their consent to provide exclusive creative work, which is not duplicated from any other piece to the company.

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The advertising agreement is subject to federal and state laws which include mutual understanding and proper formation. The agreement also provides clarity on different types of advertisement, its price points, and deadline dates. It definitely protects the right for both parties.

Without spending time on creating one on your own, you can get reliable and credible advertising agreement templates at CocoSign. We have a wide range of advertising as well as other agreement templates to help our users to create an agreement on their own version.


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