Two weeks ago Google announced it was replacing the standard 15% commission with a new system called Best Practice Funding, which will take the form of a quarterly financial reward based on billings.
Wayne Arnold, vice chairman of IPA's DMG Group and managing director of Profero, said the organisation will be meeting with Google this week to discuss the issue and is taking the search engine's decision "extremely seriously".
He said: "It is clear that Google's recent announcement has raised a number of unacceptable concerns for our members.
"At the heart of this is the move to "best practice funding" which creates a lack of remuneration transparency for our clients and has the potential to create an un-level playing field in the market."
The IPA's DMG has outlined three main concerns with Google's changes.
The trade body feels the Best Practice Funding system could undermine the trust between an agency and its client, with clients calling into question whether a proposal was driven by "best advice" or by financial self-interest.
The IPA also points out that even if this trust issue could be overcome, "the indicated qualification levels for rebates set by Google are unrealistic for any single agency in the UK or EMEA".
Finally it warns that an un-level playing field could be created by Google's plan, with smaller agencies unfairly discriminated against and could possibly be squeezed out of the market.
Steve Vyse, managing director of Clerkenwell-based full service digital agency CVA Media, is one such small operator.
Following Google's decision, he told Media Week a fortnight ago: "My agency stands to lose between £15,000 and £20,000 over the next 12 months under this new arrangement which is a lot for a small agency."
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