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Legal Definitions - marketing contract

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Definition of marketing contract

A marketing contract is a legally binding agreement between two or more parties that outlines the terms and conditions for the provision of marketing services or the execution of specific marketing activities. These contracts typically detail the scope of work, deliverables, payment schedules, intellectual property rights, duration of the agreement, and performance expectations, ensuring that both parties understand their obligations and rights.

Here are some examples to illustrate a marketing contract:

  • Example 1: Digital Advertising Campaign

    A new online bookstore wants to increase its visibility and sales. It enters into a marketing contract with a digital advertising agency. The contract specifies that the agency will design and manage a series of pay-per-click (PPC) campaigns on search engines and social media platforms for six months. The agreement details the target audience, the monthly budget for ad spend, the agency's management fee, reporting requirements (e.g., monthly performance reports), and the ownership of the ad creatives developed during the campaign. This contract legally obligates the agency to perform these services and the bookstore to pay the agreed-upon fees.

  • Example 2: Influencer Partnership

    A new brand of eco-friendly skincare products seeks to reach a younger demographic. They sign a marketing contract with a popular beauty influencer. The contract stipulates that the influencer will create three sponsored posts on Instagram and two video reviews on YouTube over a two-month period, featuring the skincare products. It also outlines specific hashtags to use, content guidelines to maintain brand image, the payment schedule for the influencer, and the brand's rights to reuse the influencer's content for their own promotional purposes. This agreement ensures both parties fulfill their commitments regarding content creation and compensation.

  • Example 3: Website Development and SEO Services

    A local restaurant decides to launch a new website and improve its online search ranking. They engage a web development and SEO (Search Engine Optimization) firm through a marketing contract. The contract specifies that the firm will design and build a mobile-responsive website, optimize its content for relevant keywords, and implement ongoing SEO strategies for a year. The agreement includes milestones for website completion, a monthly fee for SEO services, guarantees regarding uptime and maintenance, and provisions for transferring website ownership to the restaurant upon completion and full payment. This contract ensures the restaurant receives a functional, optimized website and ongoing support, while the firm is compensated for its specialized services.

Simple Definition

A marketing contract is a legally binding agreement between parties concerning the promotion, advertising, or sale of goods or services. It outlines the terms and conditions under which marketing activities will be performed, including responsibilities, compensation, and duration.

You win some, you lose some, and some you just bill by the hour.

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