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what is Brand Bidding
Brand bidding is a paid advertising strategy where you bid on keywords that include a specific brand’s name. This tactic is often used to target people who are already searching for that brand (who may be your competitor), with the goal of driving them to your own website or landing page instead of the brand’s site. By doing this, you can attract potential customers who are interested in that brand and introduce them to your products or services as an alternative.
Brand Bidding explained with example
Imagine you run an online store called “Tech Paradise,” and one of your affiliates, Publisher A, runs Google Ads using your brand’s keywords—like “Tech Paradise” or “Tech Paradise discount.”
Whenever someone searches for your brand, their ad appears at the top. If people click the ad and make a purchase, both you and Publisher A profit.
This means that whenever users search for these branded terms on Google, the affiliate’s ad will be shown. Ideally, users will click the ad, complete a desired action, and generate profit, which you can then share with Publisher A.
At first, it seems like a win-win: more traffic for you, more commissions for the affiliate. However, this is called “brand bidding,” and it has its downsides. You’re paying for ads to capture customers who were already searching for you. Plus, it can drive up costs and cause confusion when multiple ads for your brand pop up. It’s a tactic that requires careful consideration to ensure it benefits your business.
Problems with Brand Bidding for Advertisers
While brand bidding can seem like a good strategy for driving traffic, it can cause several serious problems for advertisers. Here are the key issues:
Cannibalization of Organic Traffic
Brand bidding can divert traffic that would have otherwise reached your website organically. When affiliates bid on your brand’s keywords, users who would normally click on your organic listing end up clicking on the affiliate’s paid ad instead. This means you lose out on valuable free clicks and leads, which can reduce the overall effectiveness of your marketing efforts. Over time, your conversion rates might drop, and your return on investment (ROI) can take a hit.
Increased Ad Costs
When multiple affiliates bid on the same branded keywords, it creates competition that drives up the cost-per-click (CPC). As more affiliates compete for your brand’s search terms, you’ll need to spend more to keep your ads visible. This is especially challenging for smaller advertisers with limited budgets, as they may not be able to keep up with the rising costs. The combination of higher CPCs, reduced organic traffic, and added competition can hurt your bottom line and eat into your profits.
Damage to Brand Reputation
Brand bidding also comes with risks to your brand’s reputation. When affiliates control ads for your brand, you lose control over how your brand is presented to potential customers. Affiliates may use ad copy or landing pages that don’t align with your brand’s voice or values, causing confusion or creating a poor user experience. Worse, if affiliates use misleading tactics or poorly designed landing pages, it can harm your brand’s image and erode customer trust.
Overall, while brand bidding can generate traffic, the potential downsides—lost organic clicks, higher ad costs, and brand reputation risks—must be carefully considered.
Is Brand Bidding and Trademark Bidding the Same?
While brand bidding and trademark bidding are often used interchangeably, they aren’t exactly the same. Brand bidding involves bidding on keywords related to a specific brand’s name to capture traffic. Trademark bidding, on the other hand, focuses on bidding for keywords that include a company’s registered trademark. While both tactics aim to capture traffic using a brand’s name, trademark bidding can involve legal issues if the advertiser doesn’t have permission to use the trademark.
Final Thoughts
Brand bidding can be a powerful strategy to attract traffic, but it comes with risks that advertisers must carefully consider. From increased costs to potential damage to your brand’s reputation, the downsides can outweigh the benefits if not managed properly. While it may seem like a quick way to boost visibility, ensuring control over your brand image and maintaining a balance between paid and organic traffic is key to long-term success. Before engaging in brand bidding, weigh the pros and cons, and have clear guidelines in place to protect your brand and profitability.