Google Levels European SEM Playing Field

One of the chief complaints of search engine marketing (SEM) agencies is that Google favors the big spenders with traditional business models when it comes to setting up an advertising campaign. In Europe, at least, that appears to be changing as Google releases its European Third Party program effective in January of 2006. The program is designed to empower third party advertisers, often smaller SEM companies that don't have as good of a foothold in the advertising market as traditional advertising agencies with long established media buying presence. The larger agencies can provide search engines like Google with reams of advertisers with big budgets. These agencies, that may bring hundreds of thousands of dollars per month to Google, have had an automatic advantage. In Europe, but not in the US, Overture, Espotting, and Google have given some form of a discount to agencies that bring in more business. As a result, SEM firms have often complained that Google seems to favor the big boys, by offering them financial incentives and support. The new European program aims to reform that structure. "Google's new program empowers third parties to more efficiently and effectively serve their clients. Third parties are critical to the success of advertisers and to Google and we have designed an approach that favours both," says Nikesh Arora, Vice President of European Operations at Google. "We firmly believe that it is important to preserve the integrity of the channel in terms of marketing effectiveness and advertiser perception. By fostering greater equality across Google's auction model, advertisers of all sizes can more effectively compete against each other," Arora said in a prepared statement provided courtesy of WebProWorld