By Danny Ireland, Head of Performance Media, Launch
It’s a recurring – and valid – debate. Should marketers be bidding on their brand in paid search engines? How much budget should be allocated? How should it feature in your digital marketing strategy?
We hear this from clients so often that it sparked a podcast debate between Launch’s Founder Jaye, and Abbie Dando, Founder of SEO agency Monday Clicks.
Our approach at Launch is to reframe the question. What do brands want to achieve from brand bidding? Are there results which only brand bidding can deliver, or should it be considered alongside an arsenal of other performance marketing techniques?
In this blog I’ll outline some of the key questions which we encounter around brand bidding, have a look at the pros and cons, and offer guidance on how to integrate it into your marketing plans more efficiently.
The pros of brand bidding
Defending your brand in search results
One of the key reasons to bid on your brand is to stop competitors capturing traffic which was intended for your site. It’s certainly a compelling reason to bid on your brand keywords, and to consider bidding on competitors too. Launch sees 5-10% conversion rates on competitor terms and we also know of a major greetings card brand which gets a large share of its revenue from bidding on a competitor term. If you’re not in the top four ad slots or within the shopping campaigns, customers will spend elsewhere. You can’t rely on them to scroll down to organic listings.
Brand bidding can boost your relevancy in search results
Ads for branded keywords typically have a higher CTR since users searching for a specific brand are often already interested in that brand. This leads to better ad performance.
There is a counter argument here, that those searching for your brand click on a paid link when they would have clicked an organic listing, leading to additional cost for no benefit. This is an example of where data and a holistic look at your performance can help analyse if it’s a risk worth taking.
Capturing High-Intent Traffic
Users searching for your brand are often further along their purchasing journey and more likely to convert. Capturing this high-intent traffic can significantly boost your conversion rates.
Enhanced visibility and control of messaging
By appearing in both the organic and paid search results, you increase your brand’s visibility and credibility. This dual presence can improve overall click-through rates and brand perception. On top of this, paid ads can include additional information like promotions, specific product highlights, or new offerings, providing more opportunities to engage users.
Better click through rates…
…but is this as relevant as you think it is? Yes, ads for branded keywords typically have a higher CTR due to the high relevance of the search query, leading to better ad performance. This can in turn influence your Quality Score in Google Ads, which can reduce your cost per click (CPC) over time.
However, over-emphasis on click through rates can distract from metrics which are more relevant to your business goals. For example, are those customers who click through then converting? If you’re getting the clicks but not the conversions, is a high CTR actually worth the budget?
This is an existential question for marketers which you should not overlook. Our guide to brand bidding probes the question in more detail, as does Jaye and Abbie’s discussion in the Marketing Vs the World podcast.
This was also a recurring topic at our peak performance event – you can access all the resources from the event, including a keynote from Google, on our website.
Cost efficiency
While cost impacts tend to be low, there are counter arguments around cannibalisation of organic traffic, as outlined below.
Ad Extensions and promotions
Claiming that space at the top of the search feed means you can make use of ad extensions (eg sitelinks, callouts, and structured snippets) which give extra value and information to users. This can increase engagement and conversions. You also have the ability to highlight special offers, discounts, and new product launches.
Mitigating risk of missed opportunities
Relying solely on organic search can be risky due to algorithm changes or fluctuations in ranking. Paid ads provide a consistent presence in search results.
Sometimes, organic results may not appear for all variations of brand searches. Paid ads ensure you capture these variations and don’t miss out on potential traffic.
Cons of brand bidding
It may not always be cost efficient
It could be argued that if your brand already ranks well organically, paying for branded keywords is an unnecessary expense. This is especially true for well-known brands where users are likely to find the website through organic search anyway.
‘Cannibalisation’ of Organic Traffic
Bidding on branded keywords can cannibalise your organic traffic. Users who would have clicked on your organic listing might instead click on your paid ad, leading to higher costs without additional benefit.
Skewed attribution
The revenue attributed to PPC campaigns can be misleading – how do you know if those conversions would have happened anyway via organic clicks if the ads were not present?
Brand bidding can also disrupt complex attribution models, with conversions which could be attributed to organic efforts mistakenly attributed to paid campaigns, leading to inaccurate data and potentially misinformed budget decisions.
Double Counting
When both PPC and organic search are involved, there’s a risk of double counting conversions, which can inflate the perceived success of PPC campaigns. With the right tracking this one can be avoided (your performance marketing agency can help)!
Is it really the best way to allocate your resources?
Could the budget you spent on brand keyword bidding actually be more valuable spent on something like improving SEO, enhancing user experience, or investing in other marketing channels which offer a higher ROI? Having a robust attribution model in place can help you crack this one. We have a great presentation by John Readman of Ask BOSCO all about attribution in the resources from our peak performance event. Access it here.
Brand defense isn’t always necessary
While a defensive strategy against competitors bidding on your brand is valid, not all businesses face this threat. If competitors are not bidding on your brand, you may want to consider if the budget is worthwhile.
Conclusion
If you’re looking for a ‘yes’ or ‘no’ answer to ‘should I do brand bidding’ you’ve come to the wrong place! What we can tell you is that you need to have a thorough understanding of your customer journey. You might want to start with looking at attribution and measurement, both of which we explore in detail in the resources from our peak performance event.
We explore this question in more detail from both a paid and organic perspective in our free, downloadable guide to brand bidding. Access it here.
If you need more guidance on your performance marketing strategy do get in touch. Our team of experts is happy to help.
