Yahoo decreases discount for UK agencies
Yahoo! is scaling down the discounts they are giving agencies in the UK starting January 1st 2009. Until now agencies which spent more than 80.000 pounds a month on Yahoo! get a discount of 10 percent. Starting January this will be cut back to four percent.
The UK agencies were informed this week through a memo send by the Yahoo UK-office. It stated that agencies spending over a 100.000 pounds would get a discount of 9 percent. Chances are that the reduction of the discount will only push agencies away from Yahoo even more.
Yahoo calculates the discounts over a period of three months. However agencies can 'earn' an extra one percent if they show a "year on year growth in investment".
The restructering of the discounts will very likely drive more agencies away from Yahoo. With Google gaining more and more ground in the UK chances are that most agencies will switch to Google.
Agencies are also surprised by the Yahoo actions. Yahoo gave the agenices only two weeks notice before implementing the change. When Google changed their scheme they informed the agencies 18 moths in advance. The short notice by Yahoo may be caused by all the changes (new board members, possible takeovers and lay offs) at Yahoo in recent months.
Yahoo recently also announced the closure of their Dutch offices. The London offices will be taking over the accounts handled by the Dutch. It is not clear wether the Dutch agencies will be getting the same scheme. For now only the policy is for UK-agencies only.
The memo sent by Yahoo to the agencies:
I am writing to notify you that the Yahoo! Network will be changing its search marketing agency discount policy in the UK only, with an effective date of 01 January 2009.
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