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Advertising Agreement

An Advertising Agreement is used when a company wishes to engage an advertising agency. This Agreement can also be used by an advertising agency wishing to contract with a company.

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4.6 (7 reviews)

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Last updated December 19, 2024

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Under 10 minutes

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Suitable for Australia

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Written by

Edwin Montoya Zorrilla

Reviewed by

Damin Murdock

Document Overview

Advertising for your business is often a must, and a way to bring in new customers. However, understanding the best ways to get your brand out there and do it legally can be complicated at times. That's where an advertising agency can offer their expertise to get your business the exposure it needs. 

Why do you need an agreement? 

When you hire an agency to take care of some of your marketing, it's important that the services they have been hired to render are covered by an agreement. A significant part of this involves intellectual property, and who will own the property created through advertising. 

This should be used when a Company wishes to engage an Advertising Agency. This Agreement can also be used by an Advertising Agency wishing to contract with a Company.

An advertising agreement is a commercial contract which should be used when you engage an advertising agency to help market your business. This agreement should outline the following: 

  • The services to be provided
  • The parties to the agreement
  • What is to happen to unused intellectual property
  • Confidentiality 
  • The term of the agreement 

Advertising regulations

Advertising in Australia is mainly governed by the Australian Consumer Law (ACL) and the Australian Competition and Consumer Commission (ACCC). You have to make sure as a business owner that your advertising is not false or deceptive and complies with the national guidelines. 

Other documents you may need: 

Further information: 

The Legal Risk Score of a Advertising Agreement Template

Our legal team have marked this document as low risk considering:

  • The document mandates the complete assignment of all intellectual property rights related to campaign materials created by the agency to the company, potentially limiting the agency's control and future use of their own creative outputs.
  • The agency is restricted from subcontracting any of its obligations without the express written consent of the company, which could limit the agency's flexibility in managing workload and resource allocation.
  • The agency must obtain the company's approval for various stages of campaign development and execution, which could delay project timelines and affect the agency's ability to operate efficiently.

Overall, this document establishes a framework that heavily favors the company, particularly in terms of intellectual property ownership and operational control. Users familiar with such agreements should note that while this document provides clear guidelines and responsibilities, it may place more operational burdens and restrictions on the agency, thus requiring careful consideration and possibly negotiation to balance the interests of both parties.

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Advertising Agreement Checklist

Complete your free Advertising Agreement with our checklist

Ensure Proper Execution of Signatures

Both parties should sign the agreement through their duly authorized representatives to ensure it is legally binding.

Verify Compliance with Insurance Requirements

The Agency must maintain the required insurance policies and provide certificates of currency to the Company as stipulated.

Schedule Regular Audits

Set up periodic audits as outlined in the agreement to ensure compliance and proper billing of services and expenses.

Review and Renewal Considerations

Monitor the agreement’s term and initiate renewal discussions or termination notices as per the timelines specified in the agreement.

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