If you are using an external media buyer to place television spots in any of these markets, you will want to do your due diligence and request to see the contracts. Search for the term “joint and several”. This is not what you want to see.
The advertising industry has standards for lots of things, contracts and liability among them. We in the industry, the agency (“agent”) and marketer associations, have all agreed what’s best and logical. That being, the advertiser pays their agent for the buy, the agent pays the stations, and we all skip on down the road together driving business forward. This is sequential liability.
However, some media providers are making an adjustment to their contracts, changing to joint and several liability. Our research analysis found that this liability issue impacts 70% of the US!
At our agency we do a lot of contract compliance and have been surprised and disappointed to see this change. We have taken the necessary steps to protect our valued advertiser partners from any risk this may pose.
Why is it a risk?
As an advertiser, you want to know that when you remit payment to your agency that, no matter what happens, they will be solely responsible to pay the stations. Unfortunately, in these new contracts, the advertiser is still legally responsible for compensating the station for their advertising EVEN AFTER paying the agency.
Want to know more specifics? For access to industry secrets, schedule a 15-minute informational call by clicking here.
- Abilene – Sweetwater
- Beaumont – Port Arthur
- Columbia, SC
- Corpus Christi
- Dallas – Fort Worth
- Ft. Smith – Fayetteville – Springdale – Rogers
- Grand Rapids – Kalamazoo
- Greensboro – High Point – Winston Salem
- Harrisburg – Lancaster – Lebanon – York
- Hartford & New Haven
- Huntsville – Decatur (Florence)
- Little Rock
- Los Angeles
- Miami – Ft. Lauderdale
- Minneapolis – St. Paul
- New Orleans
- New York
- Norfolk – Portsmouth – Newport News
- Odessa – Midland
- Orlando – Daytona Beach – Melbourne
- Phoenix (Prescott)
- Portland – Auburn
- Portland, OR
- San Angelo
- San Antonio
- San Diego
- San Francisco – Oakland – San Jose
- Seattle – Tacoma
- St. Louis
- Tampa – St. Petersburg (Sarasota)
- Tucson (Sierra Vista)
- Twin Falls
- Tyler – Longview (Lufkin & Nacogdoches)
- Waco – Temple – Bryan
- Washington, DC (Hagerstown)
- Wilkes Barre – Scranton – Hazelton