The search giant has spent this week breaking the news to media and search agencies that it will axe the programme by the end of 2008 and will stop handing out "growth kickers" from the start of next year.
The current system offers rebates for agencies, depending on how much they spend with Google, and funds the education of search marketers. The system was introduced across Europe last year to educate the industry on Google AdWords.
Damian Burns, Google's head of agency relations for EMEA, said that Google's annual review of Best Practice Funding found that many agencies have reached a level of knowledge and expertise, and that they no longer require the same level of help from Google.
"Continuing Best Practice Funding would send out the wrong message to advertisers that agencies can’t support themselves, so we’re discontinuing it after one more year of funding," he said. "We're the only player in this space that offers this type of discount, and it was only intended to be a year-long programme."
Burns said that agency reaction to the decision has so far been mixed and said that ending Best Practice Funding did not mean that Google’s focus on agencies would change.
"This is not a signal that our intention is to not listen to agencies," said Burns. "Our task is to convince agencies that we remain focussed on them."
Meanwhile, changes for the last year of funding will see an end to quarterly "kickers" – rebates given to agencies dependent on the amount they spend – as well as an end to Google's 10% kicker for agencies which use new ad formats.
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