A local marketing agreement (LMA) refers to a contractual arrangement between two or more media organizations, typically broadcasters, to jointly operate and share resources related to the production, distribution, and sale of advertising in a specific geographic market. This agreement allows one party, known as the programming station, to lease or sell a significant portion of its airtime to another party, known as the marketing station, in order to broadcast its own programming content.
Under this agreement, the marketing station gains access to the programming station's airwaves and audience, thereby enabling it to promote and advertise its own content, while the programming station receives compensation from the marketing station for the leased airtime. This practice is particularly prevalent in radio and television broadcasting sectors, where it helps smaller or financially struggling stations increase revenue by partnering with larger or more established stations.
Local marketing agreements can provide various benefits to the participating parties, such as increased advertising revenue, reduced operational costs through resource sharing, and content exposure to a wider audience. However, regulatory authorities often closely monitor and regulate these agreements to ensure they do not violate antitrust laws or result in undue concentration of media ownership within a specific market.
Overall, a local marketing agreement is a contractual collaboration between media organizations that allows them to pool resources, lease airtime, and mutually benefit from increased revenue and exposure in a specified geographic market.
