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An agency of record agreement appoints a single advertising or marketing agency as the client's primary representative for all (or a defined category of) media buying, creative, and campaign management services. The agency acts with continuing authority to commit the client to media contracts, manage budgets, and negotiate with third-party suppliers on the client's behalf for an agreed term, providing consistency and consolidated accountability.

Under the Copyright, Designs and Patents Act 1988, the default owner of commissioned creative work is the creator, not the commissioner. Unless the agreement includes an express assignment of intellectual property rights to the client, the agency retains ownership. A well-drafted agreement should transfer all campaign assets to the client on payment and include a licence for pre-assignment use during the campaign period.

Common fee models include a fixed retainer for ongoing services, a percentage of total media spend, a cost-plus model on production work, or a hybrid combining a base retainer with performance bonuses. The agreement should specify which services are covered by the retainer, what triggers additional fees, and how the agency is reimbursed for third-party costs such as media placements and production suppliers.

Yes. Where the agency processes personal data on behalf of the client for targeted advertising, email campaigns, or analytics, it acts as a data processor under UK GDPR. Article 28 requires a written data processing agreement specifying the subject matter, duration, nature and purpose of processing, the categories of personal data involved, and the rights and obligations of both parties.

Notice periods vary but 90 days is common for established agency relationships, reflecting the time needed to transition campaigns and creative assets to a new agency. If the agency qualifies as a commercial agent under the 1993 Regulations, statutory minimum notice periods apply: one month in year one, rising to three months from year three. Immediate termination for material breach is generally permitted regardless of the notice period.

That depends on whether the agreement grants exclusivity. Many agency of record agreements are exclusive within a defined category or market, meaning the client cannot appoint a competing agency for those services. Others are non-exclusive and permit the client to use specialist agencies for discrete projects. The scope of any exclusivity should be defined precisely to avoid disputes about whether a particular project falls within or outside the exclusive scope.

The agreement should address media bookings that extend beyond the termination date, including who bears cancellation costs, how the client assumes or novates existing contracts with media owners, and what obligations the agency has to maintain campaigns during the notice period. Without clear transition provisions, the client risks disruption to live campaigns and unexpected cancellation liabilities from third-party media owners.

The agency must ensure all advertising complies with the CAP and BCAP Codes, UK GDPR rules on data-driven marketing, and the Consumer Protection from Unfair Trading Regulations 2008. For financial services clients, advertising must be approved in accordance with FCA financial promotions rules. The agreement should specify which party is responsible for pre-clearance of advertising content and how regulatory complaints are managed and funded.