Recently a question was posed: “what is your take on an auto-renewal clause in ad contracts, particularly ones that revert to month-to-month after an initial expiration?
As an operator, always put a 30-day auto-renewal clause in your ad contracts as a safety net. Longer auto-renewal terms make it difficult to get what you want out of a renewal. Like falling into the circus net, auto-renewals are an undesirable alternative to staying up and in the air. The optimal scenario requires reps have a 52-week plan to, not only renew, but grow their contracted clients.
When an auto-renew clause in an ad contract triggers something has failed, either the rep is not proactively working the account/renewal, or the company system (CRM) is not adequately signaling the renewal in time to be proactive.
Three auto-renew risks:
- The contract renews while the advertiser’s commitment to the campaign does not.
- It prevents you from getting the requisite rate increase from the very start of the renewal.
- Auto-renewal can be a sore spot with your clients and may make them harder to deal with to get the next deal done.
Using Strategic Account Management, (Email me if you’d like a copy of my Strategic Account Management System), reps have specific intervals of interaction with the account. This is not “checking in” but positioning themselves as a resource by offering advertisers truly relevant information to help them market their business.
Once reps have strategically serviced the account, they need to ask for the renewal/upsell no later than 100 days from the renewal date. If there are problems with the renewal, it is best if the rep and management know it early on. (If you’d like my insights regarding getting contract renewals AND a rate increase, please email me.)
If your auto-renewal is being triggered too often by some reps, they need to be trained, coached, and managed to be more proactive. If auto-renewals are being triggered too often across your entire company, you likely have a sales management and/or a sales staffing problem.
An example of a good OOH contract is in Chapter 36 of the Ultimate OOH Sales Guide; You can order it at: https://billboardinsider.com/the-ultimate-out-of-home-sales-guide/.
If your year isn’t finishing where you want to, let’s talk. I may be able to help make 2027 better.
Learn more at OOHSalesFaster.com
Kevin Gephart
KevinJGephart@gmail.com
612-387-5349
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