What is an advertising contract?
An advertising contract is a formal agreement between an advertising agency or independent contractor that has promised advertising services to a business.
The contract aligns both parties on every detail of the advertising agreement. It's a legally binding document that holds both parties accountable under governing law.
To get your legally binding advertising contract that's client-ready, sign-up now to Bonsai and start that next big project.
Why you need an advertising agreement template
An advertising agreement is an absolute must for your advertising and marketing services.
There are many moving parts to an advertising campaign, from online advertising, video advertising, viral advertising; the list is long, and there's a high chance you're using various advertising channels to hit brand awareness or sales goals.
Your advertising agreement not only covers the basics of working together but completely aligns both parties on what they can expect.
What should be included in a contract for advertising services?
Your advertising agreement comes after you've delivered and agreed on the advertising proposal. The client should already know what they can expect. However, your advertising agreement needs to include the following things.
Statement of work
Your statement of work should already be included in your advertising creative brief, or at the very least, a loose idea of it. View your statement of work as an introduction to the entire contract. It should give an overview of what the advertising agreement entails and the work involved. It should also state the advertising campaign goals.
Detailed descriptions of the work
Here you can go more specifically into the campaign details. Advertising agencies may be tempted to elaborate this section of the contract, but keep it bare bones and describe exactly what the company is getting in the advertising agreement.
For example:
- 5 x billboard ads in XX destinations for XX months.
This part of the contract should also include the roles, responsibilities, and expectations of everyone involved. If you're an advertising agency, it's good to note down everyone the client will be working with and their part in the agreement.
Deliverables
The advertising contract needs to give a clear outline of the deliverables, both hard deliverables and hoped-for. For example, a hard deliverable could be the number of designs for social media advertisements and paid views for the advertising budget. Hoped-for deliverables could be something like XX new leads per month.
Advertising materials
These are the materials you will use to reach your desired goals, otherwise known as the advertising channels. In this section of your advertising and marketing contract, you'll want to include what the top-level materials are.
For example, several PPC advertisements, a radio advertisement, and some promoted posts on social media. There are many different advertising materials out there; it depends on your client, their audience, the advertising contract budget, and campaign goals.
Delivery date and timeline of work
You'll need to take a holistic approach to this section of your advertising contract. Take a look at the bigger picture and bookend your advertising campaign with content build and advertising acquisition time, as well as sufficient reporting time afterward. Map it all out here.
Payment details
Your advertising contract will need to cover all aspects of your payment details. Whether you're in online advertising or going for the more traditional ATL route, getting paid will always remain the same. Things to include are:
- Cost per project, per hour, or other
- Cost per material
- Extra costs or penalties
- Payment methods
- Payment timeframe
- Payment terms & conditions
You'll also need to include the client's invoicing details to create your invoice. Plus, a cost overview for tools you're using to get the job done—you'll be thankful for this when it comes to doing your tax deductions at the end of the year.
Copyright ownership
This is possibly one of the most important sections for your advertising clients. Every client wants to have copyright ownership over any assets you create for them—and rightly so.
Ensure in your advertising contract that it's clear who owns the right to all materials and clearly lay out what you can do with them outside of this agreement.
For example, maybe the client will permit you to use them in your digital portfolio to attract more online businesses.
You'll also find this clause legally vetted in the free advertising agreement template on this page. All you need to do to get it is sign-up for Bonsai here.
Confidentiality
There's a high chance you'll come across some business confidential information in your agreement. Your client will want to see a legally binding confidentially clause in the advertising agreement.
It means both parties agree not to share sensitive or potentially harmful information to the brand's reputation. This includes organizational structure, budgets, operations, and more.
Cancellation clause
Unfortunately, there are times in the business world when contracts can no longer be fulfilled. This doesn't mean to say either party is in breach of the contract, but perhaps the client has had a change of strategy or finances, or you can no longer manage the workload.
In this part of your advertising and marketing contract, you'll need to include the written notice period should this occur, under which circumstances, and whether the notice should be delivered by e mail or other means.
Termination of contract
Termination is something that happens from a breach of contract or gross misconduct. Although it doesn't happen often, every advertising contract needs to include it to give both parties peace of mind.
Here, layout what a breach of contract or gross misconduct is—that both parties agree on—and align on the procedure if this situation occurs.
Other factors
You've almost completed the entire agreement. Here you need to align on anything specific to your agreement. Ask the other party as well what they would like to include here.
For example, it could be access to tools like google analytics information, display networks, or social media management tools. It's also a good idea to outline liability for responses and general communication processes too.
Sample advertising contract template
Here's your very own advertising agreement template. Get this advertising contract template for free today by signing up for Bonsai.
Once you've created your account and got access to the agreement template, you'll be able to make any tweaks or changes you need, and can send your finished advertising contract off to your client in a few clicks.
What's the benefit of using Bonsai instead of editing a template yourself?
Your advertising contract with Bonsai is pre-made, with all of the legal clauses you need to start working with your client with peace of mind. It saves you time and worries, knowing you can jump straight into doing what you've been hired for.
How to create a simple advertising agreement template with Bonsai
Simple! Sign up for a Bonsai account and select your Bonsai plan. Pick the template you want, in this case, an advertising agreement template.
Next, make any changes you need to the document and fill in the blanks. Once done, you can download your contract or submit it directly to your client.
Advertising contract template FAQs
How do you create an advertising contract?
It depends on whether you're using a tool or not. An advertising contract can be created in Google Docs or Microsoft Word, as long as you include all of the necessary clauses. However, if you're using a tool like Bonsai, the contract build is mostly done for you already.
What is an advertising agreement?
An advertising agreement is an official document that legally binds an agreement between an advertising contractor or advertising agency and a client for promised advertising services.
What should be included in a marketing agreement?
There are a few things every marketing agreement needs. Here's our go-to list of clauses for any marketing contract:
- Statement of work
- Detailed descriptions of the work
- Deliverables
- Advertising materials
- Delivery date and timeline of work
- Payment details
- Copyright ownership
- Confidentiality
- Cancelation & termination clauses
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