September 20, 2007 | Thursday
Google to scrap BPF in 2009 - good news for UK search marketing
By Matt Brocklehurst, Head of Marketing in Latitude Publications |White Papers |PPC |Search Engines |Google |Search Expertise
Google announced today that the Best Practice Funding (BPF) will be removed in 2009. Effectively they are giving agencies 15 months notice of termination of the scheme. We think this is great news for the UK search industry and advertisers. There are also some changes in 2008 including no growth kicker and existing tiers for rebates lowered from Euro 4M upwards, making higher rebates achievable quicker. This will equate to a small increase in total rebate for agencies. But the real news, good news, is the 2009 scrapping.
Latitude have been in discussion with Google for a number of months on BPF. Its removal is fundamentally in line with our proposal. The removal of BPF is a massive blow for Search Marketing Agencies that rely on high volume and low added value. Conversely it is good news for Latitude that has high volume and provides high added value i.e. our profitability is not dependent on BPF unlike many of our closest competitors.
Ultimately this is good news for search marketing in the UK. Advertisers will gravitate to agencies that can provide added value and will as such enjoy superior returns and better representation in the marketplace.
For more details on the announcement and why we think it benefits the search industry and advertisers click here or open the attachment:LatitudeGoogleBPF.pdf
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