Bidding on branded search keywords of popular companies in paid search is one of the first one of the easiest ways for new entrants in an industry to get new customers.
Example 1, seen on Dec 13, 2019: Smilelove.me and Invisalign bid on Smile Direct Club’s branded term.
What did the competitors do and what did Smile Direct Club do?
Competitors bid on the branded keyword smiledirectclub. They called our clear reasons on why they are better than Smile Direct Club. Since Google does not allow use of trade mark terms by anyone except the trade mark owner, these competitors used “Smile Direct” and SDC to refer to smile direct club. Invisalign called out their benefits over Smile Direct Club on their landing page while Smilelove.me did not have any such mention.
There was no paid ad from Smile Direct Club. It is important to protect your territory in branded search especially when you are looking to grow. I am hopeful that someone on their end is looking at auction insights report to determine if they need to protect their turf better.
- Click on Smilelove.me ad let to a page which had no mention of Smile Direct.
- Click on Invisalign page led to a page that clearly called out why they are better than Smile Direct. They were very careful to not use the entire trade mark term “Smile Direct Club”.
A common misconception that a lot of marketers suffer from is, anyone searching for my branded term is looking for my brand. They are going to click on the organic link in either case, so let’s save $. This is not a smart idea when you have competitors with similar products or better products or better offers. Customers are loyal to benefits, experience and offers. While they might always be in the market to change their brand, competitor offers on branded terms can make customers aware of options and give them a reason to change.
To make the right choice, take a look at your auction insights report to understand the extent of competitive actions over a period of time. Aggressive competitor bids on your branded terms will lead to a jump in CPC, increase in cost per acquisition and potentially a drop in conversions (if customers decide to buy your competitors products).
This example also highlights why you need to spend money on branded search to protect yourself against competition.