NEW YORK—After more than a year of work with agencies, brands, publishers, ad tech providers and other players in the advertising ecosystem, the Interactive Advertising Bureau (IAB) has released its long-awaited updated “General Terms for Digital Advertising Agreements.”
The release, which opens up a 60-day public comment period that runs through July 21, is a notable development in the industry's effort to streamline the process of negotiating digital ad buys.
“The original terms were created nearly a quarter of a century ago,” said Michael Hahn, executive vice president and general counsel, IAB and IAB Tech Lab. “This initiative brought together brands, agencies, publishers, ad tech, and legal experts to create something that truly reflects how the digital advertising business operates today—and prepares us for where it’s headed next.”
Originally created in May of 2001, IAB’s standard terms and conditions for digital advertising media buys have not kept pace with changes in technology, transaction types, or platform capabilities. That has slowed the negotiating process by forcing companies to renegotiate deals from scratch, which increases both time and legal burden on all sides, the IAB said.
This new, clear, flexible foundation for digital ad transactions means any kind of buy can happen faster and with less friction, whether via direct buy or programmatic, the IAB said. The new foundation also provides for easy engagement with different vendors that support digital ad transactions, such as measurement providers and ad verification providers, the group added.
The development of the updated terms involved 276 IAB member companies, including major holding companies like Omnicom and Publicis, as well as independent agencies such as Butler/Till and Canvas Worldwide, brands such as Unilever and Bayer, publishers like Hearst and NBCUniversal, top ad tech firms and leading law firms.
The new terms offer a modular framework designed to support the full range of digital transactions. It consists of a standardized foundation for most deal types, making it easier for all sides of the ecosystem to transact efficiently, the IAB said.
“This modular structure gives the industry what it’s been missing: a balance of consistency and flexibility,” said Angelina Eng, vice president measurement, addressability and data center, IAB. “Once adopted, these terms will help our ecosystem scale more efficiently—with less negotiation, lower legal overhead and better alignment.”
“Publishers have been asking for this for years—a standardized framework that reflects how deals are actually done today,” added Rob Beeler, founder and CEO of Beeler.Tech. “This is a big win for the entire industry.”
In releasing the new terms, the IAB also provided statements from several brands and agencies supporting the move.
“The speed of growth and change in our industry has made way for multiple disconnected frameworks,” said Shenan Reed, global chief media officer, General Motors, and chair, IAB board of directors. “What IAB has done here is give the industry a shared language. That’s how we unlock trust, creativity, and speed at scale.”
To review the proposed terms and provide feedback, click here.
