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:
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.
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.
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.
Advertising Agreement Template
Prepared for [ADVERTISER NAME],
By [COMPANY.FirstName] [COMPANY.Last Name],
This Advertising Agreement (the “Agreement”) has laid out the contractual agreements upon which [COMPANY NAME] (the “Company”), being a Company established under the laws of [STATE] with the registration number [REGISTERED NUMBER] and has its business location at [REGISTERED ADDRESS], has appointed [ADVERTISER NAME] (the “Advertiser”), being a Company established under the laws of [state] with the registration number [REGISTERED NUMBER] and has its business location at [REGISTERED ADDRESS] as an advertiser offering its services to the Company (referred to as “Parties” as aggregate).
CONSIDERING: The main activity of the Company is [ACTIVITY].
CONSIDERING: The Advertiser provides advertising services in the aforementioned area.
CONSIDERING: The company wishes to appoint the Advertiser for advertising services on the contractual agreements put forth herein and the Advertiser is also interested in providing the said services on the contractual agreements laid out.
IN VIEW OF THIS, the parties have agreed as follows:
DEFINITIONS. In this Advertising Agreement:
1.1 “Territory” is a reference to [TERRITORY]
1.2 “Social Media” refers to all types of social media such as LinkedIn, Instagram, Facebook, etc.
1.3 “Ads” will refer to online campaigns.
1.4 “PPC”, “CPC” refer to the Pay Per Click method.
1.5 “CPM” “PPV”, “CPI”, “PPM”, “PPI”, refer to Cost Per View Method of advertising.
1.6 “Display Ads” will refer to the promotions done through the usage of display networks.
1.7 “SEO” refers to the Search Engine Optimization process.
1.8 “Video Advertising” refers to the advertisements conducted on Platforms including but not limited to Vimeo.com, Youtube.com and other similar video platforms.
1.9 “Viral Advertising” refers to the manner of advertising such as viral (highly popular) advertising, buzz marketing and any other type of advertising such as ones utilizing internet memes.
1.10 “Bonus Offers” will refer to the offering of any freebies such as goods, ebooks or any other services for the purpose of incentivizing the customer to purchase the goods or services of the Company.
1.11 “Fees” refer to the list of fees included in Section 4.
1.12 “Budget” refers to the financial resources and overall budget allocated to the advertisements and is mentioned in Section 5.
1.13 This Advertising Agreement may be implemented by both parties in either English or any other language but in the case, a dispute shall occur regarding the different translations of this agreement the English meaning of this agreement will be given privilege over other translations.
1.14 In case one of the terms and conditions laid out in any particular section are held unenforceable and invalid, only those terms will be considered ineffective while the other contractual agreements remain valid and legally enforceable.
PROVISION OF INFORMATION
The company has promised to provide the advertiser with the following for the reasonable process of promoting and creating advertisements for the company:
2.1 Information about the company such as an executive summary and its business location.
2.2 Adequate information about the products and services to be advertised under this agreement which includes but not limited to pertinent information such as expenses, means of payments and any refund policies.
2.3 What the objective of this advertisement is such as if it is to promote the product itself or to create brand awareness or both.
2.4 Adequately planned and thorough information about the budget allocated for the advertising.
In the instance the Advertiser is responsible for the maintenance, monitoring or control of the Budget allocated to advertisements, the advertiser promises to only use the amount of budget for the sole purpose of advertising and not utilize this budget for any other purpose and He/she is also obligated to refund any amount remaining after this Agreement ends.
7.5 The Company has agreed to pay for any fees incurred due to the advertising immediately and to not withhold any reasonable payment obligations.
7.6 The Advertiser promises to only use a) work and material formally approved by the Company or b) original work and will avoid copyright infringement in its entirety.
7.7 The Advertiser promises to not incorporate any incorrect or misleading material or statements in the advertising either by omission, statement, act or implication.
7.8 The Advertiser promises to not incorporate any vulgarity, offense, or controversial advertising for the company.
7.9 The advertiser promises to protect the company in its entirety against any damage or losses incurred in case of violation of the clauses 7.7, 7.8 or 7.9.
7.10 The Advertiser accepts the terms that he is not granted any right to legally bind the company.
7.11 The benefits and obligations incurred due to this Agreement are to be assigned by either Party only after written consent has been given by the other Party first.
7.13 In case a party has taken a delayed action or failure to act against a violation of the terms mentioned herein the Party will not be waived from their rights.
7.14 Both parties agree to not involve in activities that may prove problematic or cause adversity on the performance of the other Party’s responsibilities and obligations as mentioned herein.
7.15 Both Parties have promised to remain accountable and answerable to the judicial system and legislation mentioned in Section 11.
It is agreed that:
8.1 The advertiser is under the obligation to entirely ensure the company that any Classified information or materials owned by the company are not disclosed