Advertising Agency
9 Important Components to Include in Your Advertising Contracts
The feeling of finally sealing a deal with a client you want is so fulfilling, right? All the time and dedication you invested on writing an advertising proposal and preparing an advertising pitch paid off. Although it’s exciting to do business with a new client, there’s one last thing you must do. And that’s to arrange a contract with the client. We all know how contracts work. Most of us in the business world have encountered them one way or another. But, not all of us know about a contract’s specific components—all of which are crucial. So, before you seal the deal with a client, take time to familiarize the nine critical components that your advertising contracts should have.
We all know that getting clients is never easy. Even people who aren’t experts in the business world are aware of that. Merely presenting yourself to a client, baring the brand of your advertising agency, isn’t going to cut it. You need to show something that proves your agency can fulfill their needs. That “something” we’re talking about is an advertising proposal. Yes, you may have presented ad proposals before. But when you made them, you might’ve missed some elements that could’ve been the X factors to earn clients successfully. Anyway, you should put that in the past and move forward. Here, we’ll walk you through the seven steps for writing a winning advertising proposal.
It was way back in 1786 that the very first advertising agency was established in London by William Taylor, according to a blog from Clearcode. However, it was Volney B. Palmer, who started making the idea of an ad agency business worldwide. In 1840, Palmer launched the first advertising agency in the United States. Fast forward to present times, and almost every country on the planet has a decent amount of advertising agencies. All of which are competing with each other.
Based on a study from the Advertiser Perceptions, the word “transparency” will be the most important term in the ad industry starting 2019. Now that the year 2019 is well behind us, that term is still in the minds of ad agencies. And it should stay that way. According to a 2019 report from the Integral Ad Science, lack of transparency was a high-risk threat for the ad budgets of 59.7% of brand professionals and 63.3% of agency professionals. That said, transparency is a critical factor in establishing trust among every stakeholder in the ad industry.
According to a Statista report, advertising agencies in the U.S. will potentially generate $45 billion of revenue in 2020. That’s a $5.5 billion increase from 2015’s total. For us, that prediction isn’t surprising. We all know how valuable advertising is in the business world. Companies are always willing to spend millions of dollars on ads for the promotion of their brand image. And the recipients of their ad expenses are none other than ad agencies.
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