06 Oct 2005

NMA: Google stands firm

Search giant Google is toughing out industry reaction to its abolition of agency commission , after its announcement last week drew condemnation from key suppliers amid fears of a shake-out in paid search.

As of 1 January 2006, Google will no longer offer its monthly 15% commission to third parties. Instead, it will offer a European Third-Party Program that will provide quarterly payments based on volume and growth. Full details have yet to be released.

SEM agency Searchworks chief executive Nick Hynes added that the move would reward larger players and penalise smaller ones. "This will sort out the men from the boys," he said.