ISBA’s client-agency contract yields big results

Launched in April 2016, the Framework Media Services Contract by the Incorporated Society of British Advertisers (ISBA) has since been adopted by some of the UK’s biggest advertisers, including 44 ISBA members and five media agencies.

The framework contract was created to redefine and improve relationships between advertisers and media agencies in the UK. The most recent milestone for the initiative was iCrossing announcing that it will adopt the framework contract, making them the first digital agency to do so.

ISBA’s latest review of the usage and impact of the framework contract revealed that £6.1bn worth of client media spend has been, or will be, renegotiated with the framework contract as guidance.

The review also showed that the contract is being adapted to create terms that are not only relevant in the UK, but also internationally. Although few advertisers used or plan to use the contract in its original format or totality, the majority either used specific clauses to enhance their existing terms or had their in-house legal counsel amend the contract to fit their needs.

ISBA also found that its members’ main objectives in contract renegotiations with their agencies were not to reduce costs, but instead to improve transparency, drive better value, formalise digital metrics and standards and ensure contracts were fit for the digital future.

Commenting on the review’s findings, ISBA’s Director General Phil Smith said: “It’s very heartening to see how useful the Framework Media Services Contract has been to our members. I am also pleased at how positively their agencies have responded. We have enabled many collaborative and constructive discussions between our members and their agencies leading to better alignment in these relationships.”

Because of their work in championing media transparency, ISBA received a WFA President’s Award at this year’s Global Marketer Week in Toronto.

As for next steps, ISBA is currently working with members, partners and consultants on a second version of the framework that builds on the feedback from the review.

More information on the review can be found here. For more information, please contact ISBA.