Advertising Agency Agreements

Be sure to get all terms in writing.

Although they may vary in length and complexity, there are key provisions within standard advertising agreements that are consistent from one to another. Given that advertising agreements are legally binding, it is of the utmost importance that each listed provision be examined carefully.

Parties

This section establishes which individuals are entering into the agreement, in addition to the company each person represents. The date in which the agreement is to commence is also included.

An example of such would read as follows:

This Advertising Agency Agreement ("Agreement") is made and effective this [Date], by and between [Advertiser] ("Advertiser") and [Agency] ("Agency"). Agency is in the business of providing advertising agency services for a fee. Advertiser desires to engage Agency to render, and Agency desires to render to Advertiser, certain advertising agency services, as set forth in this Agreement.

Services

In a vivid and descriptive manner, the services provided by the advertising agency are listed in this section. To avoid conflict later on, it is important that all involved parties have a firm understanding of the scope and limit of the services to be rendered. Common services include providing copy for printed marketing materials as well as wording for radio and television commercials.

Compensation

The manner in which the advertising agency will be paid for the services rendered is outlined in this section. According to author Vivienne Quek, marketing director for Versa Creations Marketing & Advertising, a performance-based compensation plan is ideal, as it creates a win-win solution for all involved parties. Other common compensation options include retainers in which advertising agencies are paid from an account established specifically for marketing expenses.

References

• Advertising Agency