The following blog post addresses some of the provisions most commonly found in Internet Advertising Agreements.

Definitions: The first paragraph of an Internet advertising agreement should set forth the definitions of the key terms that the agreement will refer to frequently.

Term: The agreement should recite how long the agreement is for.

Positioning: This paragraph should clarify how the advertising banners will be positioned on the advertiser’s website, and may refer to a schedule attached as an Exhibit.

Click-throughs: A “click-through” means that a user has clicked on the banner or the link to the purchaser’s website. If the agreement is for a certain amount of click-throughs per month, this provision of the agreement must clearly describe the commitments promised by the advertiser.

Exclusivity: If the deal points include an exclusivity provision, the agreement must reflect this intention. The agreement should be drafted to recite something to the effect of “no competitor of purchaser shall be permitted to place or purchase from advertiser, banner or promotional advertising as defined in Exhibit B, and advertiser agrees to use reasonable efforts to prevent third parties that are entitled to place ads on advertiser’s site from placing any banner or promotional ads of purchaser’s competitors.”

These are the most key provisions of an Internet Advertising Agreement. Once you and your advertising partner have reached an agreement, it is wise to consult an experienced transactional attorney to draft the agreement for you.

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