If brand bidding will be part of your upcoming PPC campaigns, there are some definite pros and cons worth highlighting, and important considerations to keep in mind for merchants and affiliates alike.
Brand bidding is when an affiliate targets specific keywords associated with a brand, as opposed to a generic word, such as a noun or adjective that describes the product. Usually when brand bidding, an affiliate is bidding on a trademarked name, and is often therefore “competing” directly with the merchant.
Today’s blog will look at brand bidding from the merchant’s perspective, and tomorrow we will examine this somewhat controversial subject from the affiliate’s standpoint.
Considerations for Merchants
Our first recommendation, and perhaps one of the most important things to say, is that no matter how you feel about brand bidding, it’s definitely something that needs to be clearly indicated in your Terms & Conditions. Affiliates will be looking for this information, and you need to make your policy very clear. To ensure there is no confusion, it’s a good idea to create a list of specific keywords that are off limits to affiliates, as well as a list of words that are allowed.
Pros
If you’re new to the online platform or don’t have your own PPC marketing strategy in place, then allowing affiliates to market your brand name online can be an effective way for you to build your brand awareness.
Say, on the other hand, that you have an established online business, and you invest in your own PPC campaigns—are there still benefits to allowing brand bidding? Many people feel that allowing brand bidding contributes to increased visibility on a more consistent basis, and that this strategy can only help your business’ bottom line. You may also choose to allow affiliates to use your brand name, limiting their usage to markets or search engines where you are not active.
Cons
Once you allow brand bidding, quality assurance does become a bit of a concern. Affiliates could bid on your brand name to promote a competing brand, or use this keyword to send visitors to a rinky-dink site or to a site that also promotes other brands—that you may or may not want to be associated with.
For merchants who sell items that might also be sold by non-trademark owners (like the knock-offs you find on the streets of New York), allowing brand bidding may actually contribute to promoting your competitor’s fraudulent brand. Major apparel, luxury, jewelry, fragrance, and other well-known and sought after brands are the hardest-hit by trademark infringement.
Misconceptions
Some people mistakenly believe that allowing brand bidding will drive up your bid price because more people are bidding on your keyword. While this is true to a degree, the truth is that having relevant, high-quality content landing page and a high quality score will give you access to cheaper keywords, and is a more important consideration for search engines like Google. Relevancy and high-quality content will, therefore, more strongly contribute to the price you will pay for a keyword, than having a competitor bidding on the same keyword.
Allow High-performing Affiliates to Brand Bid
On a final note, you might consider using the Share Results affiliate marketing software to segment your affiliates and assign different rights to different groups. This is a great way of allowing your high-performing affiliates to take part in brand bidding, ensuring your brand name is always associated with high-quality affiliates.
Check back tomorrow for more on brand bidding for affiliates!
Here is the original post:
Brand Bidding for Merchants: the Good, the Bad & the Ugly