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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
There are a few things every marketing agreement needs. Here's our go-to list of clauses for any marketing contract:
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THIS ADVERTISING CONTRACT (the “Agreement”) is made and entered into as of [ENTER EFFECTIVE DATE] (the “Effective Date”), by and between: (1) [ENTER COMPANY NAME] (hereinafter “Company”), located at [ENTER ADDRESS] and (2) [ENTER CLIENT NAME] (hereinafter “Client”), located at [ENTER ADDRESS] (collectively referred to herein as the “Parties,” and individual a “Party”). Now, therefore, in consideration of the mutual promises made below, the Parties agree as follows:
Subject to the terms and conditions of this Agreement, Client hereby engages Company to incorporate advertising for Client on Company’s [ENTER COMPANY’S PLATFORM DESCRIPTION] (collectively the “Services”), as an independent contractor, and Company accepts such engagement.
The services to be provided by Company, the term of its engagement, and its compensation are set forth below:
Company shall provide the following advertising services to Client: [ENTER DESCRIPTION OF ADVERTISING SERVICES].
Client shall provide Company with a copy of the advertisement to be publicized on Company’s Platform in accordance with any required submission date deadlines requested by Company of Client. Should Client fail to meet any such required submission date deadlines, Client acknowledges and agrees that Client forfeits any prior payments made by Client to Company as of the applicable submission date deadline. Client warrants that any and all materials submitted by Client to Company shall not violate any third-party’s rights and/or applicable laws or regulations.
The term of this Agreement shall begin as of the Effective Date written above, and will continue until the Services herein contemplated have been rendered by Company and Company has been compensated fully in accordance with the terms herein for rendering such Services.
Client shall compensate Company in the following amount for the Services: [ENTER COMPENSATION TERMS] (the “Total Services Fee”). Client shall pay the entirety of the Total Services Fee before Company renders any Services. All payments made by Client to Company are non-refundable once accepted by Company.
Both Parties represent that they are fully authorized and empowered to enter into this Agreement, and that the performance of the obligations under this Agreement will not violate or infringe upon the rights of any third-party or violate any agreement between the Parties and any other persons, firm or organization or any law or governmental regulation.
Client and Company hereby acknowledge and agree that Company is not an employee of the Client, and that its relationship with Client is that of an independent contractor.
Except for rights expressly granted under this Agreement, each Party will retain exclusive interest in and ownership of its intellectual property developed before this Agreement or developed outside the scope of this Agreement. Any intellectual property developed solely by a Party under this Agreement without the participation of the other Party is and will remain the sole and exclusive property of the developing Party.
Nothing in this Agreement will function to transfer any of either Party’s intellectual property rights to the other Party. Each Party acknowledges that such information is of substantial value and that any disclosure or misuse of such information is harmful to the originating Party.
Company shall not be liable to the Client for any special, indirect, incidental, punitive, or consequential damages arising from or related to this Agreement, including loss of revenue, or profits or other benefits, and claims by any third party. The foregoing limitation applies to all causes of action in the aggregate, including without limitation to breach of contract, breach of warranty, negligence, strict liability, and other torts. Company’s maximum liability hereunder shall be limited to the actual fees paid by Client to Company for the Services.
Client shall each indemnify and defend Company against all damages, losses, costs, liabilities and expenses, including reasonable attorney’s fees and costs incurred in enforcing this Agreement, arising out of or relating to any disclosure or unauthorized use of a third-party’s intellectual property and/or any other breach of this Agreement.
Company hereby disclaims any representations or warranties, express or implied, regarding the Services contemplated by this Agreement, including, but not limited to, any implied warranty of merchantability or fitness for a particular purpose or implied warranties arising from course of dealing or course of performance. TechPulse makes no representations or warranties, either express or implied, regarding any results, including, not limited to, advertising performance and/or level of the public’s response in connection with the Services.
This Agreement, and the application or interpretation thereof, shall be governed exclusively by its terms and by the laws of [ENTER JURISDICTION]. Venue for any legal action which may be brought under this Agreement or arising out of the facts of this Agreement shall be deemed to lie within [ENTER CITY], [ENTER JURISDICTION]. Should any action be brought by either Party to enforce the provisions of this Agreement, the prevailing Party, whether by settlement or adjudication, shall have the right to collect reasonable attorneys’ fees, expenses and/or costs from the non-prevailing Party.
This Agreement, along with any attachments hereto, contains the entire agreement and understanding by and between Client and Company and supersedes any prior oral or written understanding. There are no other representations, promises, agreements, or understandings, written or oral, between the Parties relating to this Agreement or its subject matter. This Agreement may be amended or altered only by written agreement executed by both of the Parties.
The waiver by one Party of a breach of this Agreement by the other Party shall not be construed as a waiver of any subsequent breach.
All of the provisions of this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, if any, successors, and assigns.
The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any one or more of the provisions hereof shall not affect the validity or enforceability of any one or more of the other provisions hereof.
If either Party to this Agreement shall be prevented, hindered, or delayed in the performance or observance of any of its obligations hereunder by reason of any act of God, and such delay could not have been prevented by reasonable precautions and cannot reasonably be circumvented by the party through the use of alternate sources, work-around plans, or other means, then such party shall be excused from any further performance or observance of the obligation(s) so affected for as long as such circumstances prevail and such party continues to use its best efforts to recommence performance or observance whenever and to whatever extent possible without delay.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute a single instrument. Facsimile or electronic signatures are accepted and deemed original signatures.
THE PARTIES HERETO AGREE TO THE FOREGOING AS EVIDENCED BY THEIR SIGNATURES BELOW.
