The focus in paid search seems to have shifted to "rev share" on providing traffic, not advertisers...
Isn't that putting the "cart" before the proverbial "horse"?
Paid Search providers must feel they would have acquired the advertiser through other channels. The "short sight" is that an agency plays a bigger role than just introducing the advertiser to paid search.
I guess it comes down to the distribution partners demanding such a big percentage, leaving OV with very little. 5% of clicks represents a large percentage of OVs gross profit after paying the distribution partners.
Always sad when the little guys get pushed out. I am sure that the large scale media buyers would not tolerate a cut in commission.
I wonder if this is a decision they may live to regret though when PPC is no longer <i>the</i> thing.