IAB Moves To Replace Patchwork Ad Contracts With Shared Framework.

Interactive Advertising Bureau is seeking industry feedback on a new modular legal framework designed to simplify and standardize direct digital advertising deals. The trade group has released its Direct Buy Addendum v1.0, alongside updates to its General Terms for Digital Advertising Agreements (v1.1) and Special Terms for Insertion Orders. The framework is now open for a 45-day public comment period.

The new addendum is intended for voluntary use in contracts covering direct buys such as sponsorships and audience extension deals. IAB says it is designed to replace the patchwork of bespoke contract addenda that have proliferated across the ecosystem.

“These updated terms reflect how digital advertising operates today and reflect a clear realization that we need to move away from bespoke, custom addenda in the ecosystem,” said David Cohen, CEO of IAB. “This release simplifies outdated, fragmented contracts and replaces them with a shared foundation built by the industry, for the industry.”

Modular Framework Aimed At Reducing Friction

The Direct Buy Addendum builds on IAB’s General Terms for Digital Advertising Agreements, which were finalized in 2025 as part of a broader, multi-phase effort to modernize the legal and contractual infrastructure underpinning digital media transactions.

IAB says the modular structure allows advertisers, agencies, and publishers to adopt the framework in full, incrementally, or selectively integrate key provisions into existing contracts. The goal is to reduce negotiation friction, accelerate time to market, and increase transactional efficiency across sponsorships and other direct deals.

“Over the years, companies have created their own addenda to address modern needs. Our goal is to provide advertisers, agencies, and publishers a clear, modular starting point for direct transactions to reduce complexity and increase speed to market,” said Michael Hahn, Executive VP of IAB and IAB Tech Lab.

The organization also signaled additional components, including programmatic platform terms and measurement provider terms, will be released for public comment next.

Broad Industry Collaboration

IAB said the updated terms reflect more than a year of cross-functional collaboration involving over 200 member companies across the ecosystem, including holding companies, agencies, brands, publishers, ad tech firms, and law firms. In total, 276 member companies contributed to the development process.

“The Direct Buy Addendum is about creating a shared, modern foundation for how digital advertising does business, helping publishers, brands, and agencies move faster, transact more efficiently, and stay focused on delivering results,” says Angelina Eng, VP of the IAB’s Measurement Center. “More importantly, it reflects a true cross-industry collaboration to replace decades-old language with a flexible, practical framework built for transparency, efficiency, and trust across the entire ecosystem.”

The comment period runs through March 31, with IAB inviting feedback from buyers, sellers, and intermediaries across the digital advertising landscape.

Read the Direct Buy Addendum v1.0 HERE.