Back in September 2005, Google announced an end to commission payments to agencies in Europe, the Middle East and Africa, replaced by "Best Practice Funding." That was to me simply still paying commissions, only under a different name and a more standardized pan-European rate. Now even Best Practice Funding is going away.
Google to end ad agency subsidy from The Guardian has more details on the move. The program is to stop at the end of 2008. Despite being called something other than a commission — and sometimes described as a way for agencies to try new ad offerings from Google — the payments were not restricted in anyway, to my knowledge. You know, like commissions.
Related Topics: Google: AdWords | SEM Industry: General
If I was ever on a call to Google and if a Googler ever once accidentally referred to “kickback” rather than Best Practice Funding – and if there was ever then one of those silences when some people struggled not to laugh – then I’d not be able to talk about it!
There were some restrictions to the program. In a way that’s why some people are pleased that it is going – not every European agency qualified. You needed to have at least two members of staff to have passed the latest GAP. You needed to spend enough (hence the ‘Growth Kicker’ bonus) and only certain websites qualified.
Life will be more transparent with the BPF gone.