Overture SEM Agreement dropped

[Lottie]

We are an SME running Overture campaigns for 16 of our clients and spending over £5K a month in clicks. I.E. in excess of £60,000 a year.

A couple of years ago we set up an SEM Agreement with Overture whereby we received 5% commission on all clicks.

We have now received a notice of termination of this contract due to the burden of administration for their staff. No further explanation.

Has anyone else experienced this? Are they trying to alienate SMEs?

[keywordguru]

Haven't experienced it but this is not very common. They have shifted gears where they do not need to share a single cent because if you stop, others will fill in the gap.

A sad story for the little guy. It is becoming accustom that you will now have to charge your client that 5% above costs to manage.

The only option I can think of is their affiliate program and I am not sure if that pays out recurring or just one time.

KG

[sem4u]

I wonder how many agencies are affected?

It is certainly not like in the offline world where agencies receive a 10-15% discount for print and TV advertising.

Lottie, are you going to put your fees up to cover the cost?

[keywordguru]

It truly is ashame that they would do that. The money is coming in so quick they can truly do as they please.

You are right, in the offline world, referred business is appreciated and is never a one time thing. Forget the sign up fee, the recurring percentages are the brownie points!
KG

[redzone]

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.

[running scared]

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.

[keywordguru]

What goes up, must eventually come down......