Why Bidding on Your Brand Name in PPC Advertising is Worth It

by Marc Bitanga on January 24, 2010

For most companies it’s easy for them to gain top rankings in search results for their company name or product brand names. Barring any major issues with your website, Google does a pretty good job of making sure a company website ranks in the top 5 for their company name (assuming that your company name is unique).

This is one of the reasons why many PPC advertising campaign managers typically don’t bid on their own company name in Google AdWords. They assume this type of campaign is a waste of campaign budget.

However, there is evidence to the contrary that bidding on your own brand or company name in pay per click advertising is important.

1. Increases Brand Affinity & Purchase Intent - Research indicates that when a company is ranked #1 in the organic result as well as in the paid search result, they have a higher likelihood of looking favorably on the brand, recalling the brand as well as purchasing from them.

2. Your Brand Could Be Closing the Sale - Even in the online space there is a purchasing cycle. This is likely more evident for high dollar purchases or B2B purchasing behaviour, where more research is required to make an informed purchasing decision. Your customers could be clicking on one of your PPC advertising ads (such as product names or terminology) during their initial research, however if you find that those ads aren’t resulting in a direct sale, it’s likely because your customers are performing additional research before committing. They could be looking at third-party product reviews or opinions from social media users. Once they do commit to purchasing from you, they will likely look for your brand name or company name to find you again. This phenomenon is called First Click vs. Last Click sales attribution. If your brand isn’t easily found during the final leg of the purchasing cycle, you could be missing out on a sale. Bidding on your brand ensures you are there when it counts.

3. Your Competitors Could Be Stealing Your Traffic – With Google’s new lax trademark bidding policy, your competitors are now allowed to bid on your trademarked keywords such as your company name. If their paid search ads appear ahead of your organic search listing, you’re missing out on traffic that should have been yours.

So before you think of cutting out your brand names from your PPC advertising campaign, consider the affect it could have for your overall PPC campaign.

As always I welcome any comments!

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