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Yahoo! is to cut agency commission drastically, in a move that could further threaten media agencies' remuneration for buying search.
From 1 July, Yahoo! will pay 10 per cent commission to agencies spending more than pounds 80,000 per month and 5 per cent to those spending more than pounds 20,000. Below that, no commission will be paid.
The move has led the specialist search marketing agency Greenlight to call for all search commission to be scrapped. However, Richard Firminger, Yahoo!'s regional sales director for Northern Europe, said the new system will remain unchanged for the next 12 months.