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Google broke with habit by giving agencies a long period of notice before introducing radical changes to the way it operates. Google’s Best Practice Funding Programme will end by the start of 2009, while next year will see a series of smaller alterations to the programme.
Agencies have expressed concern, however, over how Google will support agencies after it withdraws financial backing.
Mark Howe, managing director of Google UK, said that, although Google is ending the scheme, the company’s “commitment to training programmes remains absolute”. He also promised to boost best practice in agencies by introducing new programmes in 2009.
“We will raise the bar by embedding people in agencies for one or two days at a time throughout the year,” he said. “The biggest cost of entry to search at the moment is hiring staff. There are a number of agencies starting to grow their own staff, and we would like to see something almost like a Google Academy being born.”
Howe insisted that ending the Best Practice Funding Programme was not a snub to agencies.
“Google employed me to build up agency relationships, and our agency team has grown from zero to 24 in a year and we will continue to grow next year,” he said. “We have absolutely no desire to have a more direct relationship with clients.”
Ed Foster, head of search at Universal McCann, said that a level playing field is needed and that only agencies operating on the kickers handed out by Google would suffer.
Simon Mansell, managing director of independent agency TBG London, said: “It’s difficult to compete on price against agencies that claim the full kicker. This move means that clients will select agencies more on ability than price.”
Richard Gregory, chief operating officer at specialist search agency Latitude, maintained that the move would represent “a massive blow for low added value agencies – those that operate with wafer-thin commissions”.
Gregory said that it would affect Latitude’s margin “a little bit” and that prices would be forced up in 2009, but insisted that it would be “myopic” to say specialist agencies would suffer more than most.