Itjbmarketing’s Blog

Lower Paid Search commissions in 2009 for Yahoo! by jbenomore
December 15, 2008, 2:18 pm
Filed under: Uncategorized

It has been announced that Yahoo! has been informing agencies that it will be reducing the levels of UK paid search commission it hands out from the 1st January 2009.

This follows the decision announced on the same day that Google will be scrapping its similar scheme – Best Practice Funding. Although a more extreme move, agencies have been given 15 months notice of Google’s planned change, whereas Google has only just made agencies aware ahead of the January change.

Oliver Bishop of Steak Group, commented on Yahoo’s move:

The reduction is small and will not have a notable financial impact on agencies like Steak, but this does feel like a knee jerk decision. It’s interesting to consider that the news of the cut comes on the back of what seems another cost-saving exercise – the recent sale of Kelkoo. Whilst I’m not surprised by the move in the current economic climate, it gives agencies, and the advertisers who spend their money via the Yahoo! network, little time to adjust. Of course we’ll continue to use the Yahoo! network when it generates the right return for our clients – the success of their campaigns comes first, we’re just disappointed by how little notice we’ve been given. The impact on Yahoo!’s staff morale can’t be positive – there must have been some heated phone calls with agencies.

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