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Advertising Agency Agreement Template

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Advertising Agency Agreement Template

According to the Entrepreneur, advertising refers to drawing the attention of the general public towards a new business, product, or service through various digital, print, and broadcast media channels. Advertising is a great medium to attract new clients, retain the old ones, market new products or services, establish a brand image, and develop customer relationships. 

While ad machines like Google can get your business on the digital map, you will still need the services of an ad agency. Thus, before you start working with the agency, it is essential to sign an advertising agency agreement.

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Like most agreements, an advertising agency agreement manages expectations at either end. It erases any future misunderstanding or miscommunication and ensures that the ad agency and the client enjoy a fruitful relation.

Important parts of an advertising agency agreement template

Following are some of the key elements of an advertising agency agreement:

1. Retainer

A typical advertising agency agreement states that the client is retaining the services of the advertising agency. It outlines its creative work requirements, product and services that are to be rendered, and the medium of advertising. This section may also include the client’s advertising goals and any other additional services such as public relations and market research.

It may also stipulate the duration of the contract and the date from which it comes into effect. Retainers also contain a clause that the client cannot hire any other advertising agency while the current agreement is in effect. 

Once the advertising agency agreement expires, the other advertising agency can compete for the contract. The advertising agency agreement must also contain general fees, retainer fees, billing procedures, and commissions.

2. Confidentiality

Given that advertising involves creativity, it is essential to maintain confidentiality and respect intellectual property rights. Hence, the advertising agency agreement must contain a “non-compete” clause so that either party will refrain from revealing any trademarked content or proprietary information to their competitors.

At the same time, there should also be clarity on the creative and approval processes in order to avoid conflicts. Outlining the process and expectations in the initial stages of the project ensures that the client and advertising agency are both on the same page.

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3. Refinement and research

When dealing with print ads, online banners, or television spots, advertisements are first tested with the target audience before they are published for the general public. Accordingly, the advertising agency must carry out research and refine the advertisements to ensure that the advertising efforts stay on track. Advertising agencies can include a clause in the advertising agency agreement wherein they can define the number of revisions and edits that they are willing to make at no extra cost.

4. Deadlines

Advertising is a highly dynamic world. Thus, advertising projects can be time-bound and deadline-sensitive. If an advertising agency commits to delivering an ad by a certain date, they must meet it. Otherwise, it could result in the loss of revenue to the client. At the same time, the client must also agree to provide all the necessary materials and inputs for creating the ad. The advertising agency agreement must define penalties for failure to meet such obligations.

With these clauses in your advertising agency agreement, you can be sure that the roles and responsibilities are clearly spelled out. Bonsai contains a variety of advertising agency agreement templates for you to choose from. Simply download, edit, and sign to get started!

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Advertising Agency Agreement Template
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