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Google Will End European Ad Agency Money Back Scheme
engine




msg:3456005
 2:50 pm on Sep 20, 2007 (gmt 0)

Google is to scrap its European search advertising payments system which is worth as much as 50m a year to agencies.
The programme, called Best Practice Funding, will wind up at the end of 2008.

"Agencies are now at a level where they don't need a subsidy," said Damian Burns, head of agency relations for Google EMEA.

Google Will End European Ad Agency Subsidy [media.guardian.co.uk]

 

Receptional




msg:3456020
 3:01 pm on Sep 20, 2007 (gmt 0)

Google phoned the agencies over the last few days (I got my call this morning, but I had a pretty good guess what was coming).

I think there are going to be a number of well upset agencies, but the extra year's grace and the fact that the real "Hit" was two years back will hjave taken the sting out of this announcement.

For me and SEMs I think this on balance is great. Too many agencies in the UK and I would guess Europe have clung to the illusion that PPC management CAN be a free model.

What needs to happen now is to have a good discussion about what is the BEST way to charge for PPC management. There many models that are out there but having just analysed them all, every one has its faults.

vincevincevince




msg:3456022
 3:02 pm on Sep 20, 2007 (gmt 0)

If you've been subsidising Adwords contracts through this, then you have my sympathies. On the other hand; as an Adwords advertiser myself (directly) - I'm glad that you'll no longer be effectively being able to beat me for placements with the same budget (i.e. your budget went further in terms of spend).

beesticles




msg:3456116
 3:48 pm on Sep 20, 2007 (gmt 0)

I met with Google about this yesterday evening and I hope this will give the SEM agency market the shake-up it needs.

johnser




msg:3456220
 5:04 pm on Sep 20, 2007 (gmt 0)

Monopoly power in action. Pure & simple.

Those in Dublin last week heard lots of talk of agencies being "Key Partners". You know when phrases like that are used liberally, the cliff edge is in sight.

You're right Dixon re good for long-term prospects for SEM industry & if that was the reason they did it, I'd be the first to applaud them.

But it's not. They've to power to retain 50M for the bottom line so they're doing it. That's all. Accountants' decision.

"Fair playing field for advertisers".
Absolutely, which of course is why they dropped the "growth kicker" which in no way impacts the advertiser playing field. Total bulls**t.

Only silver lining is the notice period re 2009.

Incidentally, what are the best PPC models you've seen recently? Many agencies will need a list ;)

My sympathies to those dependant on BPF...

beesticles




msg:3456233
 5:22 pm on Sep 20, 2007 (gmt 0)

"Fair playing field for advertisers".
Absolutely, which of course is why they dropped the "growth kicker" which in no way impacts the advertiser playing field. Total bulls**t.

You're forgetting about that very large finance advertiser who changed agency every quarter last year to pick up the growth kicker.

People who are complaining about this change are:
1, Managing their clients' search budgets for 'free' and living off rebates, in which case they are fools because they've let a 3rd party determine their revenues.
2, Winning business off the size of their discount (by passing some/all of it to the advertiser), not the quality of the work, which holds the whole industry back.

johnser




msg:3456249
 5:43 pm on Sep 20, 2007 (gmt 0)

"very large finance advertiser"
Be honest, how many of those are there doing that?

Re those complaining;
It's the false reasons given & sheer monopoly power that annoys me. Were it not for that, it's a good move for the industry.

Receptional




msg:3456372
 7:38 pm on Sep 20, 2007 (gmt 0)

Incidentally, what are the best PPC models you've seen recently? Many agencies will need a list ;)

Funny you should mention that... Check London's Adtech agenda next week.

beesticles




msg:3459214
 1:49 pm on Sep 24, 2007 (gmt 0)

Ha ha, that's a nice coincidence! I will try to pop along on Thursday to hear what you have to say.

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