The Effectiveness of Bidding on Branded Keywords in Pay-Per-Click

In the realm of pay-per-click advertising (PPC), the question of bidding on branded keywords may be quite contentious. Do you believe that it will be useful to your company? Is it a waste of money to use it? This article will present an explanation of what branded keywords are, as well as some examples of situations in which bidding on branded terms may result in either favorable or negative outcomes, and we will also discuss whether or not using these keywords is the best choice for your company.


Branded Keywords: What Are They?

When it comes to Google Ads, branded keywords are phrases that may be targeted and that are in some way connected to your business. The name of your company, goods that have become synonymous with your brand, or important personalities in your company are all instances of these. If we take the example of Sony, a multinational technological corporation, it is evident from doing simple keyword research that there are a great number of terms that are closely connected to their company. Sony may choose between two different alternatives. Either they may choose to not advertise for these terms on Google ads, depend on their organic presence, and run the risk of rivals appearing above them with paid advertisements, or they can choose to allocate a percentage of their advertising expenditures to these keywords.

Sony keywords research
Sony top branded keywords.

When Should Branded Keywords Be Targeted?

Keeping the Image of the Brand Safe

It may be crucial for your company to be there for every search by providing your brand name, key merchandise, offerings, and other relevant information, depending on the objectives that your company has set for itself. To guarantee that an advertisement gets shown for all of the relevant brand phrases, you can decide to put aside some funds in this scenario.

Obtaining the Highest Possible Impression Share

When it comes to a certain product, it is possible that your organic rating is not high enough to display it in the first place. Supplementing this with the use of branded keywords for pay-per-click advertising will help guarantee that you continue to appear at the top of the page for a term that is significant and relevant to your company.

The Fight Against Competition

When companies operate in highly competitive sectors, they may sometimes attempt to integrate themselves into the conversion path of a consumer by targeting the brand keywords of other companies. The rivalry that exists between firms that manufacture smartphones on the internet is a perfect illustration of this. By actively targeting one another’s branded keywords, well-known brands like Apple and Samsung were able to display higher on the page and possibly steal consumers who were looking for the other brand’s company’s product. The disadvantage of this is that some companies may engage in a “bidding war” in order to target certain priority phrases, which may lead to a significant increase in the cost per click prices in Google Ads.

Samsung's bid for the iPhone 6s
Samsung’s bid for the “iPhone 6s” is a classic example.

When Branded Keywords Shouldn’t Be Targeted?

Minimal Level of Competition

However, if your company has a relatively low level of competition but a relatively large search volume, it is possible that it is not necessarily required to bid on branded keywords, and doing so may potentially be more of a disadvantage than an advantage. It is possible that you may consider spending on these keywords to be a waste of cash if there are no rivals who are bidding on your branded terms or if you are certain that individuals who are looking for your branded terms would not be persuaded by a competitor.

Small Pay-Per-Click Budget

It is possible that bidding on a brand may not be your top priority if you have a limited budget for pay-per-click advertising. This is because bidding on a brand might occasionally attract repeat customers who are already acquainted with your brand. It is possible that it would be more effective to depend on organic results to catch those who are already acquainted with your brand and to utilize your whole budget for the acquisition of new potential users.

Poor Results

As a result of the strong conversion intent that is associated with these searches, branded keywords often have a conversion rate that is much higher. Your account’s overall performance may be impacted if conversions are received with a greater click-through rate and a lower cost per acquisition (CPA), since this is a common occurrence. In the process of reporting the findings to your team, it is important to keep this in mind.

Should My Company Bid on Branded Keywords?

Your priorities for pay-per-click advertising will determine everything. If you are operating in a sector that is very competitive, it is quite probable that your rivals may use strategies to bid on the name of your company in an effort to steal clients. If you are in a situation where you need to keep your place at the top of the search results, then conducting a marketing campaign can be something that you should consider doing. Putting more emphasis on your brand for pay-per-click advertising may seem paradoxical for the growth of your company if you are a smaller company with a lesser budget for PPC. When this takes place, it is quite probable that you will want to direct your resources toward the acquisition of new users and then, at a later time, evaluate whether or not a marketing campaign is necessary.

When it comes to your Google Ads campaigns, are you curious about the best path to take? Find out how our pay-per-click services might be of assistance, or get in contact with our knowledgeable team!

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Effectiveness of Bidding on Branded Keywords in Pay-Per-Click

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