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Google Tries To Win Over Agencies With Lower Pricing

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Google (NSDQ: GOOG) — which continues to try to improve its relationship with ad agencies — is now making it cheaper for agencies to manage large search-ad campaigns on behalf of their clients. The company says that it will now provide certified partners with “preferred pricing” for use of the Google AdWords API, which is used to build the apps necessary to manage “large or complex” AdWords accounts and campaigns. The company says it is also launching a directory so that advertisers can more easily find qualified agencies to run their campaigns.

Google VP Penry Price tells AdAge that “a lot of people on the agency side have been frustrated that we are charging for our APIs” and that his company wanted to “remove a disincentive to innovation.” In a blog post announcing the move, Google also says it hopes the lower pricing — depending on spend, fees may be completely eliminated — will get agencies “to experiment with new strategies, expand the functionality of their tools, and build more comprehensive client campaigns without worrying about increased costs.”

Unlikely Google has much to lose here; the fees were never a significant revenue driver for Google and instead were put in place so that agencies would not abuse the AdWords system, according to AdAge.