[Online media] Google to introduce ‘Google certified agencies’
By Louise Marsland in Cannes, Google, Marketing | 13 comments
Google intends introducing ‘Google certified agencies’ in 2009 to work hand-in-hand strategically with clients, due to the financial “killing some agencies are making off ill-informed clients”, Google SA country manager Stafford Masie remarked at a media roundtable in Johannesburg this morning.
“There won’t be more than five of them (agencies), to build necessary capability and understanding, so when they go to clients, they position digital correctly.”
Massie said the lack of cohesion and understanding in the media and marketing industry and amongst the bigger and medium-sized ad agencies of the digital ecosystem was causing confusion and not helping with the understanding of digital in South Africa.
“Agencies are worried about us. We are being disruptive.”
“They go in, they bill clients incorrectly. There is fraud happening. What really peeves me, is they say: ‘Give us R100 000 and we’ll sort it out… trust me’. They will not disclose to clients what their Google campaigns entail.”
Update 13h45: see full story on Bizcommunity.com: Google aims to stop ‘agency fraud’
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Wogan | Nov 14, 2008 | Reply
Ok, so as anti-cool-2.0-kid as this might sound, I’m in support of this.
Too many people in SA are getting ripped off by digital agencies, and it’s doing the rest of us harm. I know Google SA has a not-so-rosy reputation, but this is a step aimed at protecting prospective clients from the fraudsters in the industry, and for that reason, I’d support it.
On the flipside, though, they’re going to need to expand that pool of agencies over time, as well as make it easier for the ground forces to get trained and upskilled. To simply pick a few agencies and leave it at that would be viewed as nepotistic, and maybe even a little evil…
~ Wogan
Simone Puterman | Nov 14, 2008 | Reply
The following question was posed on Twitter after our previous announcement, which I then relayed to Louise via gtalk, who then asked Stafford:
@fearsumm: another revenue stream for Google - how much will those five certified agencies have to cough up for the privilege ?
Stafford: We are not only going to work with these agencies only, we won’t be a cartel… The certification will cost nothing. People get us wrong. This is not about making money – this is to ensure that we will build “reference” agencies – so there is a model in the industry that people can follow. We will have experts out there to enable various Google tools… we will provide training on all the tools. We want to broadly empower the industry.
Wendy | Nov 14, 2008 | Reply
I agree people are being ripped and something should be done- but the “we are being disruptive” attitude is a bit laughable
Luke | Nov 14, 2008 | Reply
Its true, clients with a poor understanding of the digital landscape to leave themselves open to being ripped off. They also make a lot stupid decisions on their own terms which they are willing to fight tooth and nail for.
I honestly don’t see how Google have any business pursuing this line of industry watch dog.. or whatever it is Masie is on about.
As far as I’m concerned, there are already many avenues open to businesses wanting to understand and embrace digital. It’s the initiative and leadership which is lacking, not the opportunity.
Alan | Nov 14, 2008 | Reply
This has already in full force in the UK with the majority of our agency GAP qualified. However the agency discount that was in place helps prevent this problem. Yahoo and MSN still pass this on but Google remain on 0%. Should’nt this be brought back to agencies that are GAP qualified?
Marketing Machine | Nov 14, 2008 | Reply
Sorry I disagree with this model.
Google’s success has been providing the FLEXIBLE platform that other businesses have been able to leverage off as either a publisher or as an advertiser.
Its not their job to decide how an agency interacts with its clients.
If Google wants to be an agency / consultancy then great - go for it - but then they must compete on an even footing, not decide who can and who can’t use their tools.
There are some agencies and consultancies that offer great value and some that rip the ring out of clients in any form of media - Google going this way is not going to change that.
I think Google has made a really bad mistake here and its going to damage a number of small consultantcy firms that make their living off of the Google platform
Stafford Masie | Nov 14, 2008 | Reply
Hi there again, this is Stafford (country manager of Google SA) again
I promised to respond to most of the comments and posts so here’s my second response regarding the “selection process” and these 5 agencies mentioned.
Look, there will not be ONLY 5 agencies. They will not pay Google SA (or vice versa) and neither will they get any preferential treatment whatsoever! (NOTE: There has been no “selection process” - below will explain it a little more)
Please understand the following; Google South Africa’s direct sales organization is currently engaging with approx 40 clients in South Africa. This number should increase as we build the necessary capacity and prove successful within this initial base. We are working in unison with agencies within most of these 40 clients - right now there are 5 of them.
These agencies, as are many others, have struggled to truly integrate digital media into their traditional campaigns and delivery models. We’re currently helping them to compile these strategies and build the teams within their orgs, and interlock with the rest of the organization. The intent: create the strategy, competency, capability, capacity and deliverables that give our joint clients true end-to-end marketing campaigns - digital integrated with traditional.
Again, we have 5 agencies currently covering these 40 clients. Over the past year these agencies and clients have requested that Google provide greater clarity and communicate what it believes are optimal business structures within agencies and customer environments to maximize the potential of Google’s services. We have worked and are working with these 5 agencies currently covering our area of responsibility to personify this.
Note that we do not have the model completely done just yet - there are some teething problems creating this capacity, competency and capability. Hopefully we’ll have a model that everyone can replicate because we have proven it to be successful within the clients we are focused upon.
Once successful we want to announce these 5 agencies as flagships that we have proven and consequently platforms and services that will enable ALL and EVERYONE to replicate this success within their businesses - agencies and clients throughout the industry.
Yes, it may be a monumental task but we believe it is necessary for us to evolve our ecosystem to fully and properly support digital. Digital media is still a mystery to many clients - if we are successful with this endeavor, it will benefit all…and we will want to embrace all to replicate it!
This is merely the FIRST STEP towards communicating a clearer and detailed message to the advertising community re Google’s expectations from partners, what we’re able to provide partners to empower them, and also what we would like to do with EVERYONE ELSE!
Let me make this categorically clear (apologies for the repetition); our intent is to announce that we have 5 agencies covering our existing direct sales operation clients, which we have worked with to build the necessary partnering model, competencies, and capacity. The intention here is NOT to do anything exclusive with any one of these agencies… We simply want to create a benchmark and case studies of successful agencies we have empowered…and the message will be that we invite every other agency to engage with us to be empowered in a similar manner. (Yes, we will be providing training and services accessible to EVERYONE so they can also do this - e.g. a training schedule to be announced to cross pollinate and do the necessary skills transfer…from Google analytics basics through to integrating traditional messaging into digital)
We are NOT saying that there will be only 5 agencies recognized in South Africa by Google South Africa - to the contrary - we will be telling the entire industry that our current clients, which we have the capacity to service (those 40 or so), we are working in unison with agencies that have made the investment to restructure, build capacity and create capacity to deliver on Google’s services…to the maximum benefit of our clients.
AGAIN…our intent is that in Q1 2009 we announce a certification program to empower EVERYONE…and 5 case studies proving the success. We will ensure that this certification embraces the largest to the smallest of businesses.
Obviously there are many questions regarding the details of the certification and recognition. As we move into ‘09 we will continue to communicate the facts.
Hopefully this clarifies it a little more…We would like to see FIVE THOUSAND agencies in South Africa capable of delivering Google digital services in a verbose and integrated manner.
Thanks for you posts
Stafford
Bevan | Nov 17, 2008 | Reply
Hello,
If we are not allowed to charge commission please can you suggest how we as an ad agency can make money on this form of media?
Salome | Nov 18, 2008 | Reply
Hi,
I agree with Bevan, how are the ad agencies to make money form this medium.
I can understand that Google wants to be a “watchdog” but then go through the right channels to establish your self as one, do not take business form other companies and share with a select few.
As I understand it Google is not happy with the amount of money that agencies make form this medium, so then rather curb this and do not take an entire medium away from agencies.
Salome
Marie | Nov 18, 2008 | Reply
Hi,
Stafford , i’ve been looking for some time to try and get hold of Google SA! would it be possible for you to give me the details of your local office? And who i should ask to deal with there?
Thanks
Danny Sullivan | Nov 21, 2008 | Reply
Stafford, I read your comments out of the meeting with a huge degree of horror. I made some remarks you might be interested in:
http://sphinn.com/story/86509#c58879
To what you’re doing in South Africa, you seemed to object to markup. How are these 5 agencies being paid, then? I assume they must do some markup, right? Is Google dictating the degree of markup that’s allowed? How does Google judge the value of work involved in a campaign, to decide what an agency should be able to charge?
You talk about the clients struggling to understand digital and interactive. Google knows some digital, but Google does not have the only digital ad programs out there. So when you work with these agencies and companies, is part of the best practices that Google is teaching that people shouldn’t be relying only on Google products. Do you recommend buys on alternative search engines? On competing portals? Banner purchases or social media purchases? How are you advising about email marketing?
What criteria will use use to demonstrate that the 5 companies are “proven.” Shouldn’t proven be measured by several months or years of actual performance? Are there no companies in South Africa that already have some demonstrable digital marketing performance that can be shown?
Heinrich Kotze | Dec 11, 2008 | Reply
Hi Danny,
To your question around the existence of SA companies. I was exposed at a career fair in July to a Cape Town based company called clicks2customers, think the founder is Vinny Lingham.
Heinrich
Sean Riley | Dec 12, 2008 | Reply
Good point, Danny. We are getting mixed messages here in SA. On one hand Google is undertaking to work with agencies, but in the background they are competing with many of their own agencies. In many instances they do this in the shadows whilst openly embracing the same agency they are competing with.
Our company has suffered at the hands of Google SA attempting to poach Yellow Pages by threatening to switch off our Adwords accounts if we don’t hand the client over. So now we don’t just have to compete with the company that has embraced us over the years, but if they can’t win the account on merit they simply switch you off.
Based on the ads recommended to us by the Google SA team, they have nothing to teach.