WHAT MUST I INCLUDE IN A PODCAST ADVERTISING CONTRACT?
The podcast advertising contract is an essential part of the exchange between advertisers and podcasters. Often, with smaller podcasts, this is skipped because neither party is 100% sure of what needs to go into an agreement.
We believe a podcast advertising contract needs to include EVERYTHING. It should be a combination of a legal agreement, a statement of work, an advertising insertion order, and some terms and conditions without clauses.
Here are eight key sections to include in the contract.
Name the Parties Involved in the PODCAST ADVERTISING Contract
It may seem like a no-brainer, but not naming parties involved can be easily overlooked. Don’t allow assumptions to play a role in the agreement. Make it clear in the contract.
List the name and address of the company who is advertising, the contact name, and the current position as well as any contact information. It should also have the name of the podcast, the name of the contact who is selling the ad, their position, address, and contact information. Sometimes the podcast is under a company name or a subsidiary of something else, so this is important.
Review the Goals of the Advertiser
Something essential to have in a podcast advertising contract is what the advertisers’ goals are. They promote a sense of partnership – the podcaster understands why the advertiser is purchasing ads on their podcast and is committed to helping them achieve their goals.
You can reference them for clarification of talking points.
Create a Statement of Intent
Next, you need to have a statement of intent, that the company is wanting to advertise on these specific properties and nothing else. Examples include podcast episodes, blog posts, websites, show notes, and other social media platforms.
There are so many digital properties that podcasts can have these days, so listing this out should be very specific. That way, both parties have a clear understanding of where the ads will run.
Complete an Ad Insertion Order
The Ad Insertion Order (or the I/O) is a purchase order issued between a seller (podcaster) of advertising and a buyer (advertiser). It should include:
- Where the ad placement will be in the audio podcast - preroll, midroll, post-roll.
- How long each ad will be - typically 30/45 seconds for pre and post-roll, and /60 seconds for midroll.
- How many ads there will be.
- WHO is reading the advertisement (if this isn't specific, sometimes a producer will read the ad instead of the host)
- If they are consecutive days/weeks/episodes in a row.
- Run dates – the specific dates listed.
- The rate per episode – per download, or a flat rate.
- Confirm if the ads are Embedded or Dynamic Ad Insertions.
- Is the audio interchangeable after a specific time? Will it remain on the archives indefinitely?
- If social media, email, website, and blog are included, and the details for that.
- If there will be a report, what the date is, and who will be supplying it.
- The total number of advertisements.
- The total investment for the advertiser.
Sometimes this can be an amendment to the podcast advertising contract since it is so detailed. You can use a spreadsheet template for this I/O, so everything can stay organized and is easily accessible. You can also find templates online to use if a spreadsheet doesn’t cut it.
Tracking Metrics
It is crucial to define the tracking methods of downloads and other forms of measurement. “Billable/trackable downloads will be measured as:” and then either (x) number per episode within 30 days, or 45, or overall downloads.
Guidelines for the Advertisement
- Set a date for the advertiser to provide the sample product or service to the podcaster.
- Specify who is supplying the talking points and the by-when date for delivery. Allow time for review and questioning.
- It is good to include some verbiage around disparaging, controversial, or offensive content during the ad spot. Some advertisers want to make sure that the entire episode is devoid of controversy, and that needs discussion before working up an agreement.
The Correction Clause
What if the podcaster reads something wrong or gives out incorrect information?
What if the advertiser accidentally supplies incorrect talking points?
This clause should detail the criteria for mistakes – as we’ve seen a few cases where the information wasn’t what the one-party wanted, but wasn’t necessarily incorrect either. The contract should specify what happens in these cases.
The Cancellation Clause
Cancellations can be a very tricky section of the agreement.
In most contracts, everyone has the right to cancel, with no harm. We usually go with a 30-day cancellation policy. If the advertiser decides they no longer want to participate, they still are obligated for the next four weeks of advertising. It helps soften the blow of a canceled campaign for the podcaster.
Final Thoughts- Podcast Advertising Contracts
The podcast ad campaigns are very detailed, especially advertisement specifications. The overarching goals of the podcast advertising contract, are that both parties are protected and receive what they are hoping from the arrangement.
Now that you know what makes up a podcast advertising contract, you can feel prepared to get started on a new podcast advertising campaign!
Read about The 5 big lessons Heather, the Founder of True Native Media, learned after her first few podcast interviews. She shares some funny, and awkward moments!
Original article created 01/13/2020 on LinkedIn
True Native Media is an advertising agency that specializes in connecting brands with podcasters to develop engaging content hand-crafted for audiences around the globe. truenativemedia.com