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Google Introduces 2% Fee on all Ads Served in the UK

Google 2% fee on all ads served in the UK

Google Introduces 2% Fee on all Ads Served in the UK

Starting on Tuesday, Google have been emailing Google Ads users about the introduction of extra fees for ads served in the UK (NB: a few other territories are affected too, but we’ll be focusing on the UK).

The help page clearly states that this is in direct response to the government’s newly introduced Digital Services Tax and will result in an extra 2% charge on top of any ad spend within the UK. This will start to take affect from November 1st 2020.

This tax was aimed at the largest organisations, so it is disappointing (if not somewhat inevitable) that Google have decided to pass this cost directly onto their customers. Amazon have similarly passed this cost on recently, though that goes beyond just advertising. It will be interesting to see Microsoft’s response, as if they are able to not follow Google’s lead, advertising on Bing will become more attractive.

So far, there has been no news from any Social Networks about any changes, but it will be something else to keep an eye on over the coming months.

Advertisers will need to carefully budget for the end of 2020 and beyond. Costs within the Google Ads platform will remain the same, as the fee is added on top. This does create an added complication when calculating budget and so we advice thinking about this sooner rather than later.

 

If you have any questions about how this new fee will affect you, we’re happy to help. Please do email us at [email protected], send us a tweet @upriseUPSEM or simply send us a message through our contact page. We’d love to have a chat and find out how we can support you.

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