IAB Canada Announces Online Advertising Standard Terms and Conditions (Ts+Cs) and Late Creative Policy

Toronto, ON. October 1, 2007 - For over a year, the Interactive Advertising Bureau of Canada (IAB), has worked with its Agency and Publisher members to develop a set of Standard Terms and Conditions (Ts+Cs) and Late Creative Policy designed to help Advertisers, Agencies and Publishers increase efficiencies in Online media planning, buying, implementation, invoicing and payment. Traditional media such as TV, Newspapers, Magazines, Radio and Out of Home have a long history of established Terms and Conditions including fixed invoicing and payment dates, as well as Late Creative policies.

While the Online advertising industry in Canada is just over 10 years old, Canadian Online advertising revenue surpassed the $1billion mark in 2006, and is slated to continue to grow by leaps and bounds over the next few years. As more and more Advertisers have moved greater portions of their marketing budgets to the Web, and altogether new Advertisers have entered the space -- resources for both Publisher and Agency stakeholders have become strained. And, because new ad formats (including Rich Media and Video), and new ad technologies (including frequency capping, geo-targeting and behavioural targeting), have added to the process of testing, trafficking, reporting and invoicing for Online campaigns -- a new framework for managing the process was required.

"Previous to the development of the IAB Canada Standard Terms and Conditions and Late Creative Policy, Canadian Online Publishers have each used their own individual Ts+Cs to attempt to solve the problem, and outline who did what in the process, but with inconsistent application and adherence," says Frank Duyvelshoff, Director of Business Development for Corus Entertainment Inc., and VP of IAB Canada's Publisher Council. "A consistent protocol that lined up to U.S. and U.K. IAB standards as closely as possible, while still respecting Canadian market differences and capabilities was also needed."

Key Elements of new Agency/Publisher-brokered IAB Canada Standard Ts+Cs and Late Creative Policy are:

• Campaign Cancellation Terms: Minimum 10 business day notice of cancellation, with a sliding scale of cost implications for less than 10 business day notice.

• Late Creative Deadlines: Standard Banner ads are required to be submitted to Online Publishers at least 3 business days prior to campaign launch; Rich Media and Video ads are required to be submitted to Online Publishers at least 5 business days prior to campaign launch. NOTE: If the Advertiser or Agency is using a third-party vendor to create or co-serve Rich Media or Video ads, these ads should be submitted to third-party vendor at least 10 business days prior to campaign launch, in order to allow for testing and tracking setup at the vendor.

• Responsibility For Space/Impressions: If final, Advertiser-approved, fully-functional creative is not received by the Online Publisher according to the due dates above, the Advertiser and their Agency are still responsible for the media purchased, pursuant to the Insertion Order --or up to the point where campaign has been cancelled -- and will be billed accordingly. The Online Publisher does not "owe" the Advertiser/Agency any impressions missed while creative is late or missing altogether.

• Stand-In Creative: While late creative is being developed or repaired, the Advertiser has the option to run a "STAND-IN GIF OR JPG AD" until the originally-intended creative can be trafficked into the purchased space. If the Advertiser/Agency does not supply their own "STAND-IN GIF OR JPG AD" -- because the Advertiser still "owns" the booked space/impressions (and the Publishers is not allowed to resell these) -- in order to make sure the space is filled, the Online Publisher can run an IAB-approved, "STAND-IN PSA AD" in its place.

• Reporting: The Online publisher will append proof of campaign performance to every invoice, and include results for "STAND-IN GIF OR JPG AD" or "STAND-IN PSA AD" creative in their delivery reports, within reporting guidelines as outlined in IO.

• Billing: The Advertiser and their Agency will be billed for the original, full, contracted amount of impressions pursuant to the original IO, which may include any or all "STAND-IN GIF OR JPG AD" or "STAND-IN PSA AD" impressions, as a result of late creative.

• Payment Terms: In concert with all other traditional media, payment for Online advertising campaigns is due 30 days from receipt of invoice.

• Effective Date: While Online Publishers can immediately use the IAB Canada Standard Ts+Cs and Late Creative document in their day-to-day business practices, in order to allow Advertisers and Agencies time to adjust their processes and procedures, the IAB Canada Late Creative Policy within the document, will not come into full effect until March 1, 2008. During the interim period between the IAB Canada announcement of the Ts + Cs and Late Creative Policy and the actual date the Late Creative Policy comes into effect -- just over five months -- Online Publishers (at their own discretion), will monitor and report to Advertisers and their Agencies on "costs" (in terms of lost impressions and lost campaign dollars), that would have been incurred from creative that arrives late during the five-month "adjustment" period.

The initiative has widespread industry support. The following is a list of IAB Canada Member Publishers who have agreed to fully support and enforce the documents:

How will it work? "The Terms and Conditions and Late Creative documents are meant to be used in their entirety, as one document," says Paula Gignac, President of the Interactive Advertising Bureau of Canada. "Publishers who are relatively new to the Online Industry are advised to take the document as their own, simple as that. Those who have well-developed Ts+Cs already, are still advised to use the IAB Standard Ts +Cs and Late Creative documents as the basis of their Ts+Cs going forward, but can add any additional corporate terms or conditions not covered in the IAB documents, into an "Appendix B", following the "Appendix A: Late Creative Policy."

What's the net result? "This is a balanced and fair document for all sides," says Dawna Henderson, President and CEO of the henderson bas agency and VP of IAB Canada's Agency Council. "The Agency/Publisher co-brokered Standard Ts+Cs and Late Creative Policy will create a uniform best practice that ensures Advertiser, Agency and Publisher resources are focused back where they need to be: on developing great campaigns and creative, and not on executional logistics."

The IAB Canada Standard Terms and Conditions, including the Late Creative Policy can be downloaded from the Standards area.

An Annotated version of the Ts+Cs including the Late Creative Policy, that explains -- paragraph by paragraph - what's being agreed to and by who, is also available in the Standards area.

NOTE: Annotated versions of the document are for educational purposes only.

For more information contact:
Paula Gignac
President, IAB Canada
iabcanada.com
416-598-3400 (ext. 26)

The Interactive Advertising Bureau of Canada (www.iabcanada.com), is the national voice and de facto thought leader of the Canadian Interactive marketing and advertising industry, and is a not-for-profit association representing a membership composed of advertisers, agencies, publishers and Interactive service associates.

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