Brand Bidding - Yea or Nay?15 Jul
Many advertisers question the need to pay for PPC ads for their own brand terms. Because their web site is likely to rank in the top spot organically, they see little reason in paying for an ad if the user is going to find them anyway. This argument has a lot of merit and that is the biggest reason why this debate continues. In most cases, if a consumer types in your name, they are looking for you and will probably arrive at your site by clicking that top link.
However, there are still some compelling reasons to advertise on your own brand name. Here are four of the main reasons we’ve found:
1. You can easily control the message. While you may be able to alter the description that Google displays for your site, it is not a straightforward process, isn’t guaranteed to work, and takes time. A PPC ad, on the other hand, can be changed at any time. So if you have a special promotion, seasonal sale, or launch a new product, your PPC ad can easily highlight that.
2. You control the destination. Generally, the organic result for your brand name will be your homepage, but with a paid ad you control the destination. You could show consumers your new product or highlight a sale with a special landing page. When consumers search for “Your Brand + Product A” you can make sure that they arrive on a page that features ‘Product A’.
3. Defense. If other people are bidding on your name, they are syphoning off some of the traffic you might have recieved otherwise. You can use a paid ad to get most of that traffic back. Ads for the “official site” almost always trump the competition and help insure that you get the lions share of the traffic.
It’s worth noting that sometimes, especially for big brands, it might make more sense to squash the competition through legal means and eliminate those competitive bidders (search for Walmart, American Airlines, or Office Max for examples of that). However, some brands (like eBay) know that even when no one else is bidding, reason #4 still applies:
4. It brings in incremental traffic at a very low cost. Even though your brand is the top result, there are other links on the page. Some of those links may be from your company, but many will not be. There might be news links, videos, or sites that offer reviews and even criticism of your brand. The more real estate you have at the top of the page, the larger your share of the available clicks will be.
For most companies, ads on brand terms will cost less then $0.10 per click (and we’ve seen plenty of advertisers that pay Google’s minimum of $0.01). If there are other advertisers appearing on your brand, those costs will be higher, but will still cost much less than your non-branded keywords.
Given those reasons, you can probably see why many brands choose to advertise on their own brand. We feel that the risk, in terms of dollars, is very low while the potential benefits are pretty large. Of course, every company’s situation is different, so it’s worth considering the pros and cons before making a decision.






