Google has announced that they are to terminate its European search advertising payments system. The program, also known as Best Practice Funding (BPF) will stop at the end of 2008.

BPF was launched by Google in 2006 across Europe, the Middle East and Africa. By giving agencies a percentage of money back based on how much they spent on behalf of clients, the aim of the scheme was to encourage search advertising across the region. BPF allowed for businesses to invest in technology, training and research.

For some search marketing agencies, the removal of BPF may be a massive blow, especially for those that depend on high volume and resultant BPF to make their margins. Sayu however feel that the move is a positive one.

Speaking about the shift, Simon Pitts MD, commented: "Sayu have been expecting the removal of BPF for a while now and like some other agencies we feel this is a positive move that will result in a more professional industry. Predominantly it will encourage a fairer, more established system where agencies will need to focus on the efficiency of their service and the most important factor, achieving a strong ROI for clients."

A More Stable Industry

In the past this competitive industry has seen agencies charge unprofitable management fees to win big contracts. The removal of BPF, whilst not unexpected by Sayu, could be quite a shock for such agencies that rely on BPF to meet their margins.

As a result some agencies are likely to increase management fees. To compensate for this, agencies will need to maximise their merit in the pay per click advertising arena.

The focus will be solely on return on investment (ROI) for clients and professionally managed campaigns, which is in everyone's interest.

Will Clients Be Affected?

For Sayu, profitability is not dependent on BPF.

Simon explains: "Our clients will not be affected by the removal of BPF. Profitability is dependent on providing an efficient, profitable service for clients. As search has continued to become more and more established in Europe, we have been expecting Google, for a long time now, to draw back on agency benefits and perks".

Unfortunately, this might not be the case for all agencies, predominantly those that rely on BPF to make margins.

Sayu look forward to continued growth in the pay per click arena and helping more businesses profit from Google adwords.

About Sayu

Sayu Ltd specializes in pay per click management services. By utilizing advanced statistical techniques, long tail marketing and proprietary automated bidding software we can reduce overall advertising spend and increase the quantity and quality of traffic that is provided by a client's internet advertising campaigns.

For more information, contact:
Tracey Simpson
01642 718982

Published on: 12:00AM on 21st September 2007