March 29, 2023

Digital marketing agreement

This Article has been written by Aakriti Singh, a 3rd Year student of LLB (Hons.) from Amity Law School, Amity University Noida

INTRODUCTION 

Digital marketing is the area of marketing that promotes goods and services using internet- and online-based digital technologies like desktop and mobile computers, as well as other digital media and platforms. Agreements relating to digital marketing are contracts that presume that both parties entering into the agreement have knowledge of a specific transaction. These agreements could be for: Using digital marketing to promote your goods and services; In contracts, you should acknowledge your rights and obligations towards your client as a business or marketing professional and offer services that support their goals. Digital marketing is interactive and targets a particular customer base subset. Digital marketing is expanding and now includes promoted tweets, email ads, and search result ads.

In simpler terms, Digital Marketing is the use of the Internet, mobile devices, social media, search engines, and other channels to reach consumers. Some marketing experts consider digital marketing to be an entirely novel endeavour that requires a different approach to customers and new ways of understanding how customers behave compared to traditional marketing. 

The role of digital marketing is to help you generate new traffic, leads, and sales for your business by reaching people looking for your products and services. By itself, web marketing is the process of marketing your company online to potential leads and high-value customers. 

Digital Marketing Agreements are contracts that stipulate that both parties must come to an agreement regarding a particular transaction or service. It clearly specifies the tasks to be completed, the fee and other obligations required by the parties. Digital marketing agreements are used for promoting products and services; or as a company/ marketing professional, you can recognise your rights and obligations towards your customer and provide services that align with the customer’s vision.

OBJECTIVES OF DIGITAL MARKETING 

There are numerous objectives of digital marketing, however it is vital to have a well thought out plan to ensure that the most optimum results are yielded. Hence, some of the most important objectives of digital marketing are as follows:

  • Generating Profit – The primary goal of any type of marketing strategy is to drive up revenue for the business and digital marketing allows companies to do just that. The increasing usage of the internet and its diverse offerings have made it the best and most reliable means to expand any business.
  • Building Brand Awareness – Social media has emerged as one of the most potent and extensively used digital marketing platforms. Companies can employ social media to effectively improve the perception of their brand and increase its recognition among its consumers.
  • Optimising Local SEO – Several businesses running on a small-scale look to promote their business within a particular geographic location and therefore focus on optimising the components on their website in order to draw more local traffic and thereby boost sales.
  • Acquiring Quality Traffic – Every business seeks to attract visitors who have a greater possibility of making a purchase, hence the companies are dependent on digital marketing professionals who are skilled in targeting specific consumers and guiding them to their website.
  • Maintaining Online Reputation – Companies are becoming increasingly aware of the importance of managing their reputation as bad reviews and negative comments can tarnish their brand image and erode their customer base. Hence, it is imperative for them to monitor their brand name, actively maintain their social media profiles and address any unfavourable feedback carefully.

DIGITAL MARKETING AGREEMENTS: OBJECTIVES AND IMPORTANT CLAUSES 

To make use of digital markets, a business must enter into a digital marketing agreement. These arrangements will strive to:

  • Enhance the company’s brand and web traffic.
  • Ensure protection for the brand and refine the company’s services.

– Make the website more user-friendly and speed up its operation.

– Increase the rate of conversions from the existing visitors, driving up sales.

– Supply the client with valuable consulting on money-saving marketing tactics.

  • Develop innovative ideas to amplify the company’s online presence, and track and monitor their rivals.

This actively demonstrates that by engaging in a digital marketing contract with a digital marketer, businesses can benefit greatly. Through this agreement, the brand can look to bolster their public persona, increase website visitors, protect from any potential cyberattacks, expedite website usability, stimulate sales by boosting conversion rates, access useful insights from the expert marketing team to optimise costs, as well as brainstorm innovative methods for increasing the brand’s online presence, and gauge competitor activities.

A digital marketing agreement is an important document that should include a number of essential clauses. These include: 

Definitions – This clause will identify the parties to the agreement and outline all the relevant terms used. 

Considerations – This clause sets out the money related aspects of the agreement such as fees, late payments, service costs, and taxes. 

Failure to provide information – This clause requires the client to provide information that is essential for the delivery of services, and details any repercussions for failing to do so. 

Records – This clause identifies the person responsible for keeping records safe and which files must be maintained. 

Relationship of the contracting parties – This clause explains the relationship between the vendor, contractor and customer, as laid out in the agreement.

Proprietary information – This clause sets out the intellectual property rights of the parties, and outlines the protection of such rights. 

Services – This clause sets out the terms and conditions, obligations, restrictions, and responsibilities of both parties. It also details the types of products and services the digital marketer will be providing to the client. 

Termination – This clause outlines the tenure of the agreement, as well as the results of termination. 

Compensation – This clause explains the payments the client will be making to the digital marketer in return for their services. 

Cancellation – This clause states whether the agreement is able to be cancelled, on what grounds, and the consequences of cancellation. 

Indemnification – This clause usually provides for matters such as copyright infringement and loss incurred. 

Intellectual Property (IP) – This clause details which party will have ownership of the intellectual property, and what items are included in it. 

Governing rules and law – This clause states what laws will be applicable in the case of any legal disputes. 

Renewal – This clause explains whether the agreement can be renewed and how. 

Dispute resolution – This clause explains the process for resolving any disputes between the parties. 

Products and services – This clause sets out the marketing products and services covered by the agreement. 

Terms – This clause sets out the length of the agreement. 

Warranties – This clause outlines the guarantees provided by the digital marketer in the event of any issues arising. 

Non-compete – This clause covers that the digital marketer will not engage in any similar business as that of their client, during and after the agreement. All of these clauses are essential for the successful negotiation of a digital marketing agreement.

CONCLUSION

As the use of social media has grown more widespread, businesses are in higher demand of digital marketing services. In order to effectively use these platforms and methods, companies should make sure to draft a well-defined agreement with the digital marketer in order to avoid any legal disputes down the line and ensure their business runs as smoothly as possible.

Before engaging in negotiations, it is crucial to have an understanding of the business’ goals in mind. This will give one an edge in the bargaining process. Furthermore, one should be patient when negotiating and drafting the agreement -making a single wrong decision could be detrimental to the company’s future.

REFERENCES

A Primer on Digital Marketing Service Agreement iPleaders, https://blog.ipleaders.in/primer-digital-marketing-service-agreement/#Objectives_of_a_Digital_Marketing_Agreement (last visited Feb 26, 2023) 

Digital Marketing Services Agreement – Thrive Studios, https://thrive-studios.com/wp-content/uploads/2018/08/Thrive_Digital_Marketing_Services_Agreement.pdf  (last visited Feb 26, 2023) 

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