Advertising Sales Agreements

Advertising sales agreements form the basis of trade between publishers and advertisers.

Advertising sales agreements represent a contract of purchase between a media owner or publisher and an advertiser or advertising agency. They define the terms under which advertising is purchased, how much is paid for it, when payment will be made and many other details.

Function

An advertising sales agreement is drawn up once an advertisement, or booking, has been agreed between a media owner and either an advertiser or an advertiser's appointed agency. It details the price, or rate, to be paid for the advertising, and precisely what the advertiser will receive for this price.

Volume

The price of the advertising is dictated by precisely what is being purchased, and by what else the same advertiser has agreed to book, or has booked in the past. Media owners provide incentives for greater volumes of advertising by giving preferential rates to those who advertise more.

Payment Terms

Standard industry payment terms are that the payment will fall due at the end of the month after the month in which the invoice is received. The invoice is usually issued immediately after the publication or broadcast of the advertisement. The payment terms are stipulated by the text of the sales agreement.