Is Your Brand Bidding Strategy Costing You Revenue? Discover the Surprising Truth!

Marketers have long relied on paid search ads to protect their brand presence in search results. However, this strategy might cost more than it's worth – especially when organic listings can do the job just as well.

The Evolution of Brand Search Strategy

The PPC industry’s approach to brand search investment has a notable history. In 2011, Google published an influential incrementality study claiming that 89% of paid search ad clicks were not replaced by organic clicks when ads were paused. This research became the foundation of Google’s advocacy for brand term investment, shaping marketing strategies for over a decade.

However, the study had significant limitations:

• Focused solely on auctions with multiple competitors, not reflective of many brand searches.
• Overlooked situations where brand terms trigger ads without competitor presence, leading to unnecessary ad spend.

Subsequent research and real-world experience have challenged these findings, prompting marketers to adopt a more selective approach based on actual competitive presence.

Understanding User Behavior in Brand Search

Understanding how users interact with search results for specific brands is crucial. Users searching with branded terms, especially longer-tail queries, typically have high intent and brand awareness. For example, if someone searches for "Acme Supply Company latex gloves," they are likely familiar with the product and ready to purchase. This behavior indicates that heavy brand bidding on such specific queries may be unnecessary.

The Reality of Brand Conquesting

One persistent argument for heavy brand bidding is the fear of competitor conquesting. However, years of analyzing conquesting campaign performance reveal that they typically deliver poor returns. Data indicates that users searching for specific brands are highly resistant to competitor offers, suggesting that maintaining high brand spend out of competitive fear is unwarranted.

The Rise of Intelligent Brand Bidding Solutions

Innovative solutions are emerging to help brands adopt more strategic bidding practices. These technologies offer:

• Real-time competitive auction monitoring.
• Automated bid adjustments based on competitor presence.
• Detailed reporting on brand term cannibalization.

Using proprietary tools, agencies have seen savings of up to 20% on brand spend without compromising total revenue.

The Erosion of Advertiser Control

Recent platform changes indicate a trend of Google reducing advertiser control, especially regarding keyword matching. Advertisers may unintentionally bid on competitor brand terms due to broadened match types. This shift has led to unwanted brand traffic slipping through despite efforts to prevent it.

When Brand Bidding Makes Strategic Sense

Despite the case for reducing brand spend, there are scenarios where brand bidding remains valuable:

• Reputation management: Controlling the SERP narrative during reputation challenges.
• Time-sensitive promotions: Immediate visibility for flash sales and promotions.
• Product launches: Directing users to specific landing pages for new products.
• Competitive pressure: Maintaining SERP dominance in highly competitive markets.

Getting Real About Holistic Search

Brand bidding can’t be evaluated in isolation; it's essential to consider the full picture – paid, organic, and everything in between. Clients often invest in brand ads while their organic listings could capture those clicks for free. Before renewing your brand campaign budget, ask:

• How strong is your organic presence?
• Are competitors genuinely trying to conquest your terms?
• Could those brand dollars be better spent targeting new customers?

The goal isn’t to eliminate brand bidding but to adopt a smarter, more nuanced approach.