The Interactive Advertising Bureau provides a set of standard terms and conditions governing digital advertising deals. And starting next year, those standards will be in the process of being updated for the first time since 2010.
“It’s time for a refresh,” said IAB CEO David Cohen in the latest episode of the Digiday Podcast. “We started this year with a survey to the industry [asking] what are the things that need to be changed, what are the things that need to be fixed, what should we focus on? We are starting an endeavor in 2023 to redo the terms and conditions.”
Updating the IAB’s terms and conditions is “a pretty gnarly process,” Cohen said. The process involves other industry trade organizations, including the Association of National Advertisers (ANA) and the American Association of Advertising Agencies (4A’s) and establishes a set of generally accepted provisions that ad buyers and sellers can adopt in their contracts, such as payment terms and cancelation options.
To be clear, the IAB’s terms and conditions are more recommendations than requirements. Companies can choose to not adopt them. For example, some TV network owners have opted not to support the IAB’s cancelation terms for their streaming inventory.
That cancelation option is among the terms on the table for an update, though any changes are unlikely to be introduced ahead of next year’s upfront negotiations. Cohen said he expects the forthcoming update to be a two-year effort.
“We’re kicking off the project in earnest in Q1, and I think just realistically it’s going to be more than a year to get this done. So it will be a 2023-24 initiative,” he said.