IAB Sends 'Direct Buy Addendum' To Public Comment

The Interactive Advertising Bureau (IAB) opened a framework for public comment that is designed to simplify direct digital advertising contracts, reduce legal friction and provide a starting point for buyers and sellers transacting in digital marketplaces.

Direct Buy Addendum v1.0 -- along with updates to its General Terms for Digital Advertising Agreements and Special Terms for Insertion Orders -- were released Thursday. The advertising community has 45 days -- through March 31 -- to publicly comment on the framework.

“These updated terms reflect how digital advertising operates today, and reflect a clear realization that we need to move away from bespoke, custom addenda in the ecosystem,” stated IAB CEO David Cohen. “This release simplifies outdated, fragmented contracts and replaces them with a shared foundation built by the industry, for the industry.”

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The draft in Lines 15 and 16 is specific to the framework and the way it establishes succession. It states that the Addendum succeeds the General Terms of the agreement in the event of a conflict regarding direct buys.

Line 26 further clarifies that order-specific terms control in the event of a conflict with the Direct Buy Addendum.

The draft also includes significant clauses regarding the placement of ads on network properties, stating that buyers may withhold payment if a placement list is not provided, which appears on Line 75.

Starting on Line 67, it also addresses price protection, ensuring buyers are not charged more than the rate specified in the order.

The changes are part of a multi-phase initiative by the IAB to modernize legal and contractual agreements that support digital advertising by providing language that accurately represents current practices, according to an IAB statement.

The terms are voluntary for use in direct-buy contracts such as sponsorships, audience extensions and more.

The framework aims to streamline negotiations, reduce legal friction, and increase efficiency across media buying.

Programmatic platforms and measurement provider terms will be released next for public comment.

 

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