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ReachLocal - Corporate agency with a dark secret
Tytuł: ReachLocal - Corporate agency with a dark secret
Data: 2014-03-11 11:59:00
Kraj: UK
Typ: ReachLocal - Corporate agency with a dark secret
Firma: Yoda London
Miasto: London

ReachLocal, a PPC (Pay Per Click) NASDAQ company, are finally being exposed for
their manipulation of Google AdWords guidelines concerning price transparency
towards their clients.

It is well known that ReachLocal is one of the UK's largest AdWords' Certified
Pay per Click Agencies, but there is a dark side to the agency that is now
starting to emerge.

The company has been offering their services for well over six years and claim
to produce success across a number of different industry sectors. But how can a
company turn over $514.1 million and claim to only take 10/15% as a management
fee, although this varies from customer to customer?

ReachLocal has been taking advantage of loopholes in Google's terms and
conditions for being a premium partner. We will now expose the true reason for
ReachLocal's overwhelming success.

How ReachLocal use loopholes in Google AdWords guidelines:

"Third parties should at minimum provide advertisers with monthly data on
AdWords costs, clicks, and impressions at the account level".

The above statement allows ReachLocal to keep accurate and transparent data to
themselves instead of displaying the true Google Spend on their dashboard.
ReachLocal cleverly hide this information on their dashboard; it's almost
impossible for users to access this data.

Furthermore, Google stipulates that you must be able to:

"Review and control certain types of information tied to your Google Account by
using Google Dashboard."

The above statement shows where the misselling takes place and that the actual
amount they spend on the campaign is really unknown. We have spoken to some ex
ReachLocal clients who claim to have only 50-60% of their budget spent on
AdWords; the rest is taken as a management fee by ReachLocal, which is not made
clear to all clients.

This clever tactic has been used to trick ReachLocal's clients into spending
more. ReachLocal have many claims to fame; one of which is being in partnership
with Google - only a small number of UK agencies can claim this digital

This causes many people to trust them from the outset. But after speaking with a
number of different sales representatives (IMC - Internet Marketing
Consultants), they all seem to be glorified car salesmen, and there is no real
talent and definitely no digital marketing skills.

We asked how ReachLocal could make such vast amounts of profit if they spend
their entire budget every month. A ReachLocal ex-client told us he believed the
company made their money through AdWords commissions. We asked another ex-client
of ReachLocal and received the same answer.

The fact is, ReachLocal does not provide CLEAR transparency to its clients and
does not show clients the exact amount spent by ReachLocal on their cost per
click campaigns.

Client Complaints Found Online - Just 2 of hundreds dug out from complaint

An ex-client from Virginia, United States, said: "They managed to cause us to
lose over $100,000 in sales via their 'optimized system'. For a company that
turns over $500K to lose that much is crushing for us. Now I have to hire
lawyers and fight it in court."

Another unhappy ex-client, from London, United Kingdom said: "My RL consultant
has admitted that their pricing is not transparent and that he basically lied to

Many other complaints can be found on the web.

Clearly Unethical

ReachLocal is a Google Premier Partner and some of its sales people have said
that Google provides ReachLocal with special benefits, such as commissions from
Google on AdWords spend. However, this is totally untrue.

No one in Europe, America OR the UK receives a commission from Google and never

What does being a Google Premier Partner mean to you as a client?

Does it give ReachLocal an advantage over any Google AdWords' Certified

The answer to the above is NO. You do not get any extra benefits, no more than
any other agency.

A Premier Partner just means that it does a certain level of overall business
with Google. Outside of that, a Google Premier Partner receives no preferential

For example, it will not rank partners' ads any higher than any other marketing
agency or anyone else for that matter. Furthermore, there is no pricing

Google Third-Party AdWords' Policy:

"Third parties should at minimum provide advertisers with monthly data on
AdWords costs, clicks, and impressions at the account level."

** As a note, Google uses "should" instead of "must", which means this is the
loophole that allows companies like ReachLocal to keep accurate and transparent
data to themselves, and not have to share accurate statistics with its clients.

The fact that this is not well known to the public is a sign that ReachLocal
have hidden their tracks well, but after speaking to a number of ex-clients, the
time seems to be up on this clever but clearly unethical and deceitful ploy
that's been ongoing for many years.

If you're a ReachLocal client and you're reading this, I urge you to get in
touch with your IMC and ask for a full breakdown of current Google spends.

In light of the above, the contracts that ReachLocal issue to new clients have
been slightly amended to safeguard and cover their backs. Many of the contracts
have been renewed without the client knowing of the slight change of wording.

Although some customers have already cottoned onto what's happening, after
asking time and time again for a clear breakdown of AdWords spends, it remains
that many of ReachLocal customers are still in the dark. The good news is that
after speaking to a number of ReachLocal ex-clients, it has come to light that
many have managed to obtain a refund, using the direct debit indemnity scheme
that helps you safeguard your money.

This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Yoda London via GlobeNewswire

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