The Pros Of PPC Brand Bidding

Defence

Bidding on your own brand guarantees the first spot in the SERPS (Search Engine Result Pages) when someone searches for you. If you do not bid on your brand, potential clicks could go to competitors if they happen to be bidding on your brand terms.

Search engine results pages have undergone fundamental changes over the past six months, with paid search and shopping ads positioned more prominently than organic listings. For mobile, two text ad formats on top of the page, as well as product listing ad listings have forced organic results below the fold. Not having a paid ad presence leaves brand traffic vulnerable.

Visibility

Appearing first in the SERPS allows you to take up more space on the page and pushes your competitors further down. This is critical when mobile search is fast overtaking desktop usage and mobile above the fold real estate is smaller.

With extended text ads (ETA), ad extensions and the increased number of mobile ads appearing, it is more important than ever to appear on top. Showing for both paid and organic listings leads to overall increased click through rate (CTR), traffic and revenue.

Conversion

Brand bidding can increase conversion rates and lower CPC’s (cost per click) by targeting consumers that are familiar with your brand and who are further down the consideration/conversion funnel. This in turn leads to a more cost-efficient strategy with lower CPA’s for your overall paid activity.

Paid brand activity can impact your organic results. However, paid and organic brand performance should not be looked at in isolation. Best results can be achieved when both channels are working together.

Reactivity

It is easy to be reactive and to change your brand messaging as often as necessary to communicate your message to your target audience. This could include changing your ads to reflect a new offer, to push a new product or range, promote a sale, etc.

You also have added control over information in your site links, giving you the choice of pushing specific products which can improve your CTR and sales performance.

THE Cons OF PPC BRAND BIDDING

Risk

By bidding on brand, you could end up spending money on existing customers who would otherwise click on your organic listings. The question is, are you willing to take the risk? If you don’t bid on the brand term, they could come through to your site organically which would save you money. Alternatively, the potential consumer could click on competitor’s ads, which would be damaging to your overall sales targets.

Price

Brand competition levels depend on several factors. It could vary based on your position in the market, the number of resellers you have and the agreements you have in place, as well as your brand’s overall competitiveness in terms of pricing and services offered.

Fighting off a large number of competitors and resellers can become pricey, in particular if your competitors have an edge on price or delivery charges. As a result, your cost per click and conversion rate can suffer and this will have a negative impact on returns. To avoid wasting ad spend, increased tech integration is key to identifying weaknesses and opportunities in your product range. Reseller management is another key component to your paid strategy.

Is Brand Bidding Necessary?

It may not be necessary to bid on brand if you are the only paid ad that appears in the SERPS when someone searches for your brand and you also appear first organically. Low competition in this situation would mean you’d be paying for clicks that you would otherwise be getting organically.

Testing the impact of brand bidding is crucial. Key factors should be considered for a test including:

  • Depth of existing data
  • Testing methodologies
  • Seasonality
  • Changes to site, organic listings, other channels e.g. referrals, email, SERPs

There are many advantages to bidding on your brand ensuring you don’t lose any clicks to your competitors. Each case is different and to find out what is best for your brand, the only thing you can do is to test and experiment to optimise your brand bidding strategy. A good PPC management agency should be open to testing and can advise you on both the strengths and weaknesses of your approach.