A Brief Introduction About Insertion Order
During the times of conventional advertising, most of the dealings were carried out manually.
Moreover, the websites back then were not equipped with standard terms or billing procedures for the business enterprises. However, with time, as the Internet has advanced significantly, website monetization with the help of modern ways of advertising has increased at the same time. As such, the modern advertising industry has started coming up with innovative methods for keeping records of business transactions or agreements. This is how the concept of insertion order came into existence.
If you are searching for “what is an insertion order,” then we will help you out with the detailed IO definition. As per the official insertion order definition, it is defined as, “Insertion Order is an official agreement that contains the specific details of the inventory for ensuring the processing of the given ad proposal.” In other words, it can be defined as the specific piece of document that is known to represent the agreement between the advertiser and the publisher for running a specific advertising campaign.
Who Takes the Insertion Order?
Insertion order is regarded as the final step in a typical ad proposal process. During the proposal process, this order is signed. After signing, it serves as a legal agreement and represents the commitment from a specific advertiser (or the advertising agency) for running an advertising campaign on the site of the publisher. Once the insertion order has been agreed upon & duly signed, the advertiser is expected to run ads on the sites of the publisher for a specific duration of time as well as impressions.
Purpose of the Insertion Order
The IO or Insertion Order agreement is referred to as the old school method of keeping records of the overall advertising revenue. Even after rapid digitization in the modern era, the agreement of insertion order is still known to be highly functional in the advertising industry and is being practiced by business enterprises all around the world. An advertising Insertion Order (IO) agreement is known to provide an insight to the advertisers as well as the publishers about the specific placement of the advertisement.
An insertion order template can be prepared by an advertising agency, an advertiser, or the publisher. IO is used to represent the final confirmation of the fact that the publisher has been successful in winning a spend from the advertising agency or the advertiser. In case the particular advertiser is through some reputed advertising agency, it is the responsibility of the advertising agency to prepare this order. On the other hand, if there is no involvement of any advertising agency or in case the advertiser is through some small-scale advertising agency, then it becomes the responsibility of the publisher to prepare the in-depth IO template.
Contents of the Insertion Order
If you opt for creating the insertion order template through the digital medium or some online vendor, then it is referred to as the “Digital Insertion Order.” Both traditional, as well as digital modes of these agreements, are known to serve the same functionalities. The digital mode of preparing the IO is meant to deliver great ease of use as well as a convenience to the users.
As far as the overall content of the agreement is concerned, an IO is known to contain all the necessary information that might be related to the given agreement as well as the specific advertising campaign. Here are some of the important parameters to look out for:
- Starting date of the agreement
- Ending date of the agreement
- Name of the advertising campaign
- Name & details of the advertiser or advertising agency
- Name & details of the ad publisher
- Unit dimensions as well as placement details of the ad
- The target audience for the ad
- Number of impression servings
- Advertisement pricing structure
- Advertisement colors, sizes, and positioning on the webpage
- Total discounts & costs
- Reporting requirement
A typical IO agreement is also known to contain a position for posting the respective representatives of both the advertiser (or the advertising agency) and the publisher for signing over the date and confirming the agreement. Usually, the order is known to contain all the specific details about a particular spend. This is done to avoid any confusion that might arise concerning the payments in the long run.
[Also Read: Web Advertising Agreement]
How to Draft the Insertion Order?
When you have the requirement of outlining the details of a specific advertising campaign, you can make use of an advertising insertion order. It can be utilized for both conventional printing and online advertising. Typically, an IO is used for establishing what, when, and how the advertisements you need should be implemented, and how you are going to pay for the same.
It is recommended to make use of an IO in a case:
- You have taken some marketing responsibilities for your clients
- The newsletter that you run is known for accepting advertisements, and you are required to define certain terms & conditions
- You are submitting a specific ad campaign for the current advertising agreement
While drafting the insertion order, you are required to include vital information like:
- Client Information: Stating the company name, address, point of contact, phone, email address, website, and the date of the agreement
- Advertisement Information: The Point of Contact of the company that has been listed in the contract is responsible for ensuring the delivery of all vital information concerning the insertion order.
- Payment Details: The agreed price for the positioning of the ad should be specified as [Total Price].
- Entire Agreement: The advertising IO agreement is known to serve as the complete order or agreement between the publisher and the client. As such, all modifications to the given agreement is required to be done in writing and to be signed duly by both the involved parties at the same time.
Negotiation Strategy
Before negotiating specific terms & conditions on the given insertion order agreement, it is recommended to talk out the same to the other parties. Some of the current negotiations in a typical insertion order agreement can be made concerning the payments, positioning of the ad, promotion of the ad, and so more.
Benefits & Drawbacks of the Insertion Order
Some of the common points of benefits of the IO agreement include:
- Specifying All Advertising Details: A typical insertion order example is known to contain all the details that are related to the advertising proposal such that the publishers can access the same easily. With the help of the specific details about the ad, future pricing for inventory can also be designed at the same time.
- Confirmation of the Deal: For the publishers out there, the IO agreement serves to be the written proof of the agreement or deal. The order is known to specify the amount the publisher will be receiving through the advertisement as well as the sale of the display inventory signed by the advertising agency or the advertiser.
- Customizable Agreement: This agreement is known to allow the publishers as well as the advertisers to work together. For making the deal beneficial for both parties, the agreement is customizable.
While there are several benefits of this agreement, some of the potential drawbacks of the same can be:
- Slow Processing: The preparation of an IO would require constant intervention from human resources. While one is responsible for preparing the IO, the other individual should approve the same.
- Negotiations Might be Tricky: In a typical advertising IO, there is never a perfect advertising deal made. One of the two involved parties is required to make a compromise for sealing the deal.
What Happens in Case of a Violation?
Under the case of violating or not abiding by the specific terms & conditions of the insertion order agreement, the publisher is free to terminate the agreement at his or her own will without any prior notice. Moreover, if the advertiser or the advertising agency breaches any specific clause of the agreement(1), the order remains in grounds for termination. Upon termination of the agreement, all the funds or payments become due, and the agreement will cease to exist.
While preparing the insertion order template might sound like additional efforts in the given advertising strategy or campaign, it is still considered important for many reasons. If you are looking forward to running a successful, well-monitored business organization, preparing an IO can be immensely helpful. It is regarded as a major step in the direction of the new advertisement –used for representing a commitment between the advertiser and the publisher. IO also helps in managing budgets for the advertising agency or the advertisers. For the publishers, it serves to be a mode of evaluating improved revenues.