Jan 20, 2020
Recently Google made a strategic decision to not renew performance bonus contracts with a number of Google Premier Partners (agencies) that provide SEM services to automotive dealers at Tier 3. This change will have a ripple effect on OEM co-op programs and will likely usher another round of consolidation. In the long-term this will likely be better for Google and dealers. It might also limit the over-spending by agencies who just wanted to hit their sales incentive bonuses which ultimately lowered ROAS from Google to dealers. The few agencies that have bonuses still in place better re-invest in their technology platforms and the account management services they provide or risk losing that significant extra revenue.