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When an Advertising Agency Retainer is Used
An advertising agency retainer is used when a company needs to outsource marketing work to a third party with assurances that their services will be delivered on time. By having an advertising agency on retainer, a company guarantees access to their services and communications whenever required.
Types of Retainer Agreements
- Pay-for-Access – The client pays a periodic fee (usually monthly) for the agency’s continued services. Services beyond the regular scope of the agreement usually incur additional charges.
- Pay-for-Work – An hourly rate is charged by the agency. A fixed block of hours may be allotted to a given period.
- Project-Based – The agency is paid a flat fee per project, such as a logo design, website launch, or online ad campaign.
Types of Advertising Agencies
Advertisers tend to focus on paid channels, such as online, social media, television, and radio. However, there are specialized agencies that provide narrower services adapted to specific company needs.
Creative Agency
A company’s branding, including its logo, page layouts, ad content, business cards, and color schemes, is usually developed by a creative agency. These agencies specialize in copywriting, videography, and graphic and visual design.
Digital Agency
Digital agencies specialize in digital marketing and provide services such as brand design, website development, content creation, and marketing consultation.
Marketing Agency
A marketing agency analyzes the client’s products, marketplace, and branding to create a marketing strategy. A full-service agency will see a marketing campaign through to completion and provide access to multiple advertising channels. In some cases, another advertising agency may be hired to carry out the strategy developed by a marketing agency.
Sample
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ADVERTISING AGENCY RETAINER AGREEMENT
This Retainer Agreement (“Agreement”) is by and between [SERVICE PROVIDER’S NAME], hereafter referred to as the “Service Provider,” and [CLIENT’S NAME], hereafter referred to as the “Client.”
1. SERVICES. The Service Provider agrees to provide the following services to the Client: [DESCRIBE SERVICES] (“Services”).
2. COMPENSATION. In consideration for the Services to be provided, the Client agrees to pay the Service Provider $[AMOUNT] per hour.
3. RETAINER. As an advance on future Services to be provided, the Client is required to pay the Service Provider a retainer in the amount of $[AMOUNT] every ☐ week ☐ month ☐ quarter, beginning on [DATE] (“Retainer”). The Retainer is: (check one)
☐ – Refundable.
☐ – Non-refundable.
4. NON-DISCLOSURE. The Service Provider agrees not to disclose or misuse the Client’s proprietary or confidential information without prior written consent, except as needed to perform the Services, recognizing that such actions would cause irreparable harm to the Client.
5. EXPENSES. The Client shall only be responsible for the following expenses: [LIST EXPENSES TO BE PAID BY CLIENT].
6. INDEPENDENT CONTRACTOR STATUS. The Service Provider is an independent contractor, and neither the Service Provider nor their employees or contract personnel are or shall be deemed the Client’s employees.
7. TERMINATION. Either party may terminate this Contract upon [#] days’ written notice.
IN WITNESS WHEREOF, the parties have executed this Agreement on [MM/DD/YYYY].
Service Provider’s Signature: ____________________
[SERVICE PROVIDER PRINTED NAME]
Client’s Signature: ____________________
[CLIENT PRINTED NAME]