Google Assault on Media Buying Agencies with Gadget Ads and No Kick Backs

Take a look at Google's new Gadget Ads where you can reach 75% of unique Internet users with flash based adverts.

To me it's part of their assault on interactive agencies after the news that Google is to scrap its European "Best Practise Funding" by the end of next year.

Agencies would typically get between 3% to 8% of their ad spend back each quarter. To me its just a cynical ploy to improve the bottom-line in the short term.

But back to the Gadget Ads, they are putting the control back into merchant's hands but I think Google forgets that the Internet doesn't revolve around them. There are other media owners and search engines that clients need help working with.

It's a weired juxtaposition between them being forward and creative in developing new advertising mediums, but being backward and destructive when it comes to agencies.

I wouldn't like to think how many of the large media buying agencies will react and if they try and spend more of their clients' money on non-Google ventures such as social media ....