Google Dump Agency Commissions

It may be of news to some, but Google have had arrangements with media companies, in various countries, paying 10 per cent commissions to media buyers on Adwords. These arrangements are now being phased out.

According to this article, Google will also now stop this program in Australia:

“Google has broken ranks with a decades-old media industry practice of paying 10 per cent commissions to media buyers, with a planned wholesale dumping of the system by August 1. The paid search advertising powerhouse, which will control an estimated 70-80 per cent of this year’s $120 million paid search advertising market, started briefing agencies on its plans this week to mixed reactions”.

Interesting bit: there is some talk of global deals for big agencies, although Google is (reportedly) playing this aspect down:

“OneDigital’s Mr Holmes said his British parent company Carat was in discussions about global volume discounts.

“Those conversations are going on in London at the moment,” he said. Carat is Google’s single biggest buyer globally of paid search advertising.

But Ms Vale downplayed any global buying deals.

“The system won’t allow for arbitrage whatsoever,” she said.”

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