Advertising Agency Agreement
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Clause 1: scope of services
Core Service Category | Included Deliverables & Strategic Scope | Service Level Expectation (SLA) |
Campaign Strategy & Development | Brand positioning, audience research, campaign messaging frameworks, channel recommendations, launch planning, and multi-channel rollout coordination | Bi-weekly strategy syncs |
Creative Design & Production | Visual assets, ad copy, concept development, static and motion design, video production coordination, and production-ready creative files | Max 3 revision rounds per asset |
Media Planning & Buying | Media mix planning, audience targeting, budget allocation, ad placement, publisher negotiations, insertion order support, and spend pacing oversight | Monthly spend reconciliation |
Digital & Social Media Management | Content scheduling, channel publishing support, community monitoring coordination, paid social campaign management, and optimization recommendations | Weekly performance reports |
Analytics & Market Research | A/B testing support, conversion tracking review, dashboard interpretation, market trend review, and quarterly insight summaries | Dashboard updates |
Operational service assumptions
- Client will provide timely approvals, brand assets, legal disclaimers, access credentials, and product or campaign information needed for delivery.
- Revision limits apply per deliverable unless a statement of work states a different review cycle or approval path.
Clause 2: compensation and payment structure
- Monthly Retainer Fee: $5,000, payable within 30 days of invoice date for ongoing core services.
- Project/Campaign Add-Ons: Additional project-based fees will be documented in mutually approved written statements of work, estimates, or change orders.
- Out-of-Pocket Expense Reimbursement: Reimbursable direct costs, including third-party media spend, stock footage, specialized software licenses, rush couriers, talent fees, and approved vendor costs, are payable by Client when pre-approved in writing.
Expense Category | Management Fee / Markup | Billing Cycle |
Direct Paid Ads (Google/Meta/TikTok) | Net spend + 10% Agency Admin Fee | Upfront / Bi-monthly |
Third-Party Production & Talent | Pass-through cost (at cost) | Pre-approved per campaign |
Billing mechanics
- Retainer invoices are issued monthly in advance unless the parties agree otherwise in writing.
- Project invoices may be issued on signature, by milestone, on delivery, or under the payment schedule stated in the applicable statement of work.
- Media, production, talent, platform, and publisher costs may be invoiced in advance where prepayment is required to secure placement or production windows.
Clause 3: term and automatic renewal
Clause 4: ownership and creative material use
- Agency retains ownership of all pre-existing materials, templates, proprietary tools, production methods, know-how, processes, pitch materials, working files not designated for delivery, and any generalized ideas or techniques that do not contain Client Confidential Information.
- If a deliverable includes third-party materials, stock assets, fonts, music, software, platform tools, or licensed components, Client receives only the rights that Agency is permitted to pass through under the relevant third-party license terms.
- Client grants Agency a non-exclusive, royalty-free license to display completed campaign materials, campaign results, Client name, and approved logos in Agency portfolio samples, case studies, award submissions, presentations, proposals, website galleries, and social promotional channels, unless Client gives written notice of a specific confidentiality restriction.
Clause 5: confidentiality and data protection
- Each party will use the other party's Confidential Information only for the purpose of performing or receiving services under this Agreement.
- Agency may share Confidential Information only with employees, contractors, and approved vendors who need that information to perform the services and who are bound by confidentiality obligations at least as protective as those in this Agreement.
- The receiving party will apply reasonable administrative, technical, and organizational safeguards to protect Confidential Information from unauthorized access, misuse, loss, or disclosure.
- Confidentiality obligations survive expiration or termination of this Agreement for 3 years, except trade secret obligations survive for so long as the information remains a trade secret under applicable law.
Clause 6: termination and cure period
- On termination, Client will pay Agency for all services performed through the termination date, all approved work in progress, all approved third-party costs, and all non-cancelable media, production, talent, software, and vendor commitments made before the effective termination date.
- Agency will use commercially reasonable efforts to stop or reduce future external costs after receiving a valid termination notice, but Agency is not responsible for charges that cannot be cancelled, refunded, or reversed under vendor or platform terms.
- If Client terminates for convenience, any prepaid retainer amounts apply to services rendered and approved commitments first, with any remaining undisputed balance handled under the invoicing reconciliation process.
Clause 7: governing law
Clause 8: miscellaneous
- Neither party may assign this Agreement without the other party's prior written consent, except to an affiliate or successor in connection with a merger, sale of substantially all assets, or corporate reorganization.
- No waiver is effective unless in writing. A delay in enforcing a right does not waive that right.
- If any provision of this Agreement is held unenforceable, the remaining provisions remain in effect and the invalid provision will be interpreted as closely as possible to its original commercial intent.
- Notices under this Agreement must be sent to the business contacts and addresses designated by the parties, including updated notice details delivered in writing.
Clause 9: entire agreement
Executive authorization and sign-off
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