Media Contract Guidance for Advertisers: Global Best Practice

Together with Firm Decisions, part of the Ebiquity Group, a leading independent contract compliance auditing business, and input from China Association of Advertisers (CANA), the WFA has created a portfolio of best practice guides when contracting media. The guides cover Global best practices (in English and Chinese languages) as well as a guide specific to the unique China market. 

Full details of all the guides can be found below as well as links to download.

Media Contract Guidance for Advertisers: Global Best Practice This guide highlights the importance of the right contract as the basis for an ongoing, trusting relationship between advertisers and their media agency partners.

The new guide looks at ten areas of best practice around the world:

1. The Master Service Agreement (MSA)
2. The challenges of digital media
3. Transparent models in programmatic media buying
4. Inventory media
5. Unbilled media, media credits and holds
6. Media benefits, including Agency Volume Benefits (AVBs)
7. The right to audit
8. Data management
9. Payment terms
10. Remuneration

The goal is to ensure full transparency in return for fair remuneration, protect advertisers’ best interests and to encourage the widespread adoption of best practice. 

Its publication follows analysis of data from the WFA’s Transparency Scorecard, established in partnership with FirmDecisions parent company Ebiquity a year ago, which reveals that out of the 50 large multinationals who have taken part, some 46% are revisiting and auditing their contracts quarterly, half-yearly or annually.

This leaves some 54% who are looking at contracts less often including 8% who concede that they do not have comprehensively signed contracts with all their agency partners globally.

“For some time now, P&G has been calling on the media industry to create aresponsible media supply chain, one that is safe, efficient, transparent andaccountable. Now it’s time to create that responsible media supply chain,built for the future and that serves the needs of everyone, especially theconsumers we serve. The WFA Media Contract Guidance for Advertisers isa significant step is this direction and will help advertisers to establish andmaintain an equitable relationship with their media agency partners,” said Gerry D’Angelo, Former VP Global Media, P&G and co-chair of the WFA Media Forum.

“The transparency agenda has broadened beyond its financial roots. It’s no longer just about money. We also need transparency to ensure our brands show up in safe environments, that consumers’ privacy is protected, and our media investment is being directed towards diverse media and trusted journalism. The contract is the place to enshrine all these criteria. I hope that this document serves as a reminder of this,” said Isabel Massey, Global Media Director, Diageo and co-chair of the WFA Media Forum.

“The right contract for all parties ensures that the partnership runs smoothly, brand-side and agency-side. It keeps the day-to-day relationship on an even keel and helps all parties understand and fulfil their key roles and responsibilities. Given the complexities and the fast- evolving nature of the media and marketing ecosystem, having a contract in place that promotes transparency and drives optimum performance is a must-have,” said Federica Bowman, Global CEO of FirmDecisions.

The English language and dual language versions of this document are available to download below.

The 'Media Contract Guidance for Advertisers: Focus on China' empowers advertisers in China to navigate unique transparency challenges.  

The guide highlights that a robust contract ensures a smooth day-to-day relationship and clarifies the roles and responsibilities of both parties. It addresses the complexities and rapid evolution of the media and marketing landscape, emphasizing the need for a transparent contract that drives optimal performance.

Clear and unambiguous contracts are crucial for establishing a strong, documented partnership between brands and agencies. Best practices recommend regular contract compliance audits commissioned by advertisers to ensure adherence to the agreed terms by the agency. These audits should occur every one or two years to reflect the dynamic nature of the media marketplace, with the findings incorporated into updated contracts.

"We are excited to collaborate with WFA and CANA in releasing this comprehensive Media Contract Guidance for Advertisers", said Jocelyn Wang, Managing Director at FirmDecisions. "This comprehensive guide equips advertisers with valuable insights into the specific nuances of working with China based media agencies, including utilization of brokers in China, fostering transparency and empowering them to make informed decisions regarding their media agency partnerships." 

The resulting China-specific Guidance, combined with the previously released Global Media Contract Guidance both in dual English and Chinese, aims to provide advertisers with clarity on the distinctive aspects of the Chinese market. It offers a framework for developing fit-for-purpose media agency contracts that capture the nuances of the market.

"Our role at WFA is to help brand owners navigate the available tools and world-class practices in establishing robust and transparent commercial relationships with their agencies, ultimately driving better outcomes for both the client and agencies," said Laura Forcetti, Director of Marketing Services Asia Pacific and Global Sourcing, WFA

The Media Contract Guidance for Advertisers: Focus on China is available to download below: