On the internet, competition is rife, with millions of websites pursuing billions of “surfers” (website visitors/users) worldwide. The more surfers who “hit” (visit) a website, the more “traffic” it generates, thus the more valuable that website becomes to advertisers, who will pay to have their advertising “banners” (window or box- style advertising strips) or “pop-up” ads (as the name implies, the advert “pops-up” in a box or banner strip when a visitor hits the site) appear on the websites with a high amount of traffic.
Popular websites such as Google, Amazon and eBay can command huge sums for advertising banners and pop-ups on their webpages because they have millions of visitors daily.
For the website owner, choosing the right number and mix of adverts (but not too many) will ensure that its visitors will keep coming back. The website owner must also ensure that an advert will not devalue its website or the webpage that it is displayed on by being unsuitable or even illegal or harmful, thus (as this Contract is drafted for the Website Owner’s benefit), Clauses 4 and 7 contain warranties and undertakings of the advertiser in this respect.
On the question of fees and charges payable, it depends purely on the name and reputation of each party. If the website owner is the larger, well-known party, then it will be able to demand a higher percentage of the revenue generated by the advertiser from appearing on the website owner’s websites.
This Contract also includes the circumstances in which the website owner may immediately “take down” (remove) the advert from its website and its right of recourse against the advertiser.