Why Pay for Your Own Company Name? Five Benefits of Bidding on Branded Terms in Google AdWords

If your website and landing pages are already ranking well in searches, why invest additional money into brand term bidding in Google AdWords? The question is a logical one, and there are many excellent reasons why the strategy makes sense. Before we get into the reasons though, let’s first take a look at exactly what brand bidding means.

What is Brand Bidding?

Google’s AdWords (and other pay-per-click adverts) show up in search results when certain terms are entered by the user. The practice of brand bidding ensures that if someone searches using a specific brand name the winning bidder’s ad will appear in the results. That is true regardless of whether or not the winner sells the product with that specific name. For example, if an online shoe store wants to grab more traffic, the owners might bid on the term ‘Nike’ or ‘Badgley Mischka’. Even though the store might not sell those brand names, the hope is that the ad they have created will be memorable and attention-grabbing enough to prompt the user to click on it.

So, that’s the meaning of and motivation behind brand bidding. However, what are the additional benefits associated with the practice? Here are five reasons why you should participate in brand bidding (and, yes, even on your own brand name).

1) Increased Control

An advertiser has more control over the user’s path with branded terms. A businesses home page isn’t necessarily the best place for branded traffic to land. So, if there’s a landing page that yields higher conversion rates, branded ads will get the user there.

2) Prevent Distractions

Brand name bidding is also a good way to prevent potential customers from being distracted by competitor’s ads. If a consumer is shopping for a product similar to the ones you sell, your goal should be to make sure your ad is the first one to grab their attention.

3) Professional Appearance

When an ad is placed at or near the top of search results, it gives the business automatic validation. Users see it as an indication of an established, reputable business. The psychology behind that is that the more trustworthy your business appears, the more likely someone is to click on your ad and purchase from you.

4) The Competition Is Doing It!

Just as your ads can show up when your competitor’s brand name is entered, their ads can also appear when your brand name is entered. Make sure you level the playing field a bit and prevent their strategy from whittling away at your profits.

5) Increase Competitors Costs

When the competition bids on your brand terms, your ad can appear next to theirs. It’s your brand name, so it makes sense that your ad will have a higher click-through-rate (CTR). It will also likely have a better quality score and position. What will end up happening is that your competitor’s conversion rate will drop, and their CPA will go up. In addition, their traffic will decrease and their position will lower, but their bids will have to go up to maintain the same spot. Brand bidding is cheaper for the competition when you don’t bid.

Bidding on your own brand might seem counterintuitive, or at the very least, like a waste of money. It’s also not necessarily a strategy that fits every business. But, it can be an effective component of a search engine marketing (SEM) campaign when the goal is to maximise your investment in Google AdWords. Brand name bidding will increase your online presence, make it more difficult on the competition, and lead to a higher CTR and more conversions.

Article by Will Williamson