When looking at their PPC media spend, clients often ask – is it worth bidding on our own brand terms?
There are two main concerns most clients have;
Why should we pay for ads on our own brand name if…
1) Our organic ranking is already near the top, why do we need to appear above our organic ranking?
2) People searching our brand are obviously already in to us so will be looking for our site.
Both of these concerns are logical, but there are a couple of other factors to consider.
1) Competitors will often bid on your brand so that their ads appear above your organic ranking, potentially stealing your traffic.
When thinking about SEM, it is always best to take up as much ad space as possible, e.g. paid ads, extensions and the new three headline feature to minimise the effects of competitors.
2) Spending on brand has proven to have increase the effectiveness of other channels.
A recent article on PPC Hero, What Happened When We Paused PPC Brand Campaigns carried out a test where brand spend was switched off for a month, with results measured across all channels.
The results of the test showed a drop in the performance of paid search (as expected), but also and perhaps more surprisingly, so did the performance of the other channels. Organic search was the only channel that saw an uplift in users and revenue.
The figures from the test can be seen below:
However while organic search performance did indeed improve, it didn’t increase to a level that would make up for the lost paid search revenue.
Overall there was a 24% decrease in revenue.
The fact that other channels not associated with search decreased in revenue when brand spend was paused shows that there is more value to bidding on your own brand terms than pure clicks. The extra brand awareness that PPC on brand name provides has shown to be much more valuable than you may think.
Bidding on brand terms is usually the cheapest, most efficient and better qualified type of bidding you can do – especially for brands with strong brand awareness.
It’s shown to be an effective tool and it won’t cost you much – so make sure brand terms are part of your PPC strategy!
Also read: How to perfect your Christmas PPC campaigns