What Is a Web Advertising Agreement?
There are two parties in an advertising placement agreement, the client and the publisher. The client has to pay the publisher a certain fee for publishing advertising content belonging to the client. The client intends to improve revenue by getting more clients from people who visit the publisher’s website. The unit cost and description of the advertisement are part of the contract.
When Do You Need a Web Advertising Agreement?
When you want to advertise your content on a website owned or operated by a publisher, you enter into a web advertising service agreement. The goal of this contract is to get a larger viewership from the same audience that the publisher has access to. Unlike affiliate agreements, the publisher does not choose the client. It is a mutual relationship.
Inclusions in the Web Advertising Agreement
A web banner advertising agreement includes the following information:
- Names of the publisher and the client
- The effective date of the agreement
- Type of advertisement, description, run dates and price
- Due dates for payment and penalties for delays
- Rights and obligations of the client
- Provisions for modification and/or cancellation
- Rules relating to intellectual property
- Termination of contract
- Confidentiality clause
How to Draft a Web Advertising Agreement?
You can draft this agreement by referring to a web advertising agreement sample. The process of drafting an agreement is as under:
- Format of the contract: Use a web advertising contract template and modify it
- Business section: The rights and duties of the publisher and the client
- Termination section
- General provisions section
- Scope and services: The nature of the advertisement and the rates
- Compliance with the advertising codes and in line with the governing bodies
- Acknowledgement that the advertisement don’t infringe on any copyrights or trademarks or are offensive to any sect, religion, ethnicity, or specific group of people by race, faith, origin etc.
- Acknowledgment that the advertiser has rights and licenses to everything that is being advertised
- Exclusivity of operations
- Confidentiality of operations
- IP rights of the owner
- Discretion and anonymity of content
- Assignment and subcontracting
- Waiver of liability
- Representation and warranties
- Governing law
- Termination of the agreement
- Rights of third parties
- Payment Schedule and process of completion checking
Benefits of the Web Advertising Agreement
The benefits of having the agreement are:
- Both parties to the contract can take legal action if the other party violates any clause
- Assurance of benefits for both parties. The publisher has assured payment on publication of advertising content and the client gets access to the publisher’s customers leading to higher profits
- Termination of the contract if either party is not satisfied
Types of Web Advertising Agreement
This agreement is applicable in the following cases:
- Banner advertising: The horizontal displays at the top or bottom of a website are known as the leaderboard and the vertical displays are known as skyscrapers.
- Click-throughs: This is a hyperlink that you find on a website, which takes you to the client’s site.
- Multimedia advertising: These are video or photo advertising contracts.
Key Terms/Clauses in the Web Advertising Agreement
The key terms for such agreements can be found in a digital advertising contract template. Here are some standard terms:
- Advertiser disclaimer
- Compliance with all relevant laws
- Acknowledgement of rights and licenses to the content
- Discretion and anonymity
- Acknowledgement that the content does not contain inflammatory material
- Confidentiality and exclusivity of operations
- Assignment and successors
- Governing law
- Assignment: No rights can be assigned or sold by any party
- Severability: If a part of the agreement is not enforceable, the remaining part will still be enforced
- Limitation of liability
- Term and termination
- Force majeure
What Happens in Case of Violation?
When this agreement is violated, the injured party sends a notice mentioning the violation. If there is no response, the following remedies are available:
- Monetary damages including lost profits for a total breach of contract
- Rescission or cancellation of the contract if fraud is detected
- Specific performance requires fulfilling the obligation, monetary damages are not accepted
- Reformation: A fresh contract is drawn
- Restitution: The injured party is returned any money or property given to the other party
Subject to the terms appearing in the agreement, a checklist of these main issues to be considered when drafting or negotiating the agreement.
[Also Read: Exclusive Internet Advertising Services Agreement]
Sample for Web Advertising Agreement
A sample of the agreement can be downloaded from below.