PPC Marketing - PPC Brand Bidding - To Bid Or Not To Bid


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Useful tips and experience on whether its worth pausing your PPC brand bidding or not with particular reference to the current financial situation

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PPC Marketing - PPC Brand Bidding - To Bid Or Not To Bid

  1. 1. Brand Bidding PPC -To Pause or Not To PauseIn these tough financial times, budget cuts are much more evident and it’s usually marketing expenditurewhich is the first casualty. These budget cuts force marketers to make decisions on where they should reduceexpenditure and stopping bidding on pay per click brand terms is one of the top things that gets actioned. But isit the right move to stop bidding on brand terms? The following covers the reasons why you would considerpausing these campaigns and the reasons why you may not want to pause them as well as discussing our ownexperience as a PPC agency working with companies that have decided to test brand bid pausing.Reasons To Stop Brand BiddingThe Thought Process - People searching for your brand through brand terms are motivated to find yourcompany no matter what, so why would you want to waste cash on PPC brand bidding if people will end up at yourwebsite anyway? This is the main theory that backs up the idea of pausing PPC brand bidding, and as a simpletheory you can understand it, but with many other factors that attribute to people arriving at a website, will thetheory stand strong against the actual results of pausing brand bidding?Cash Saving - From stopping bidding on brand you get an instant cash saving that can help towards your othermarketing activities, and for a lot of companies the amount spent on brand bidding is very sizeable.Organic Placement - If you are top of the natural search listings for your brand term why pay for PPC assearchers will see your website listed in the most clicked position on the SERP’s?Reasons To Bid On Brand TermsControl Marketing Message - If you don’t enter the PPC auction, your resellers and affiliates can control theway your brand is portrayed to the searcher, and more times than not the image they are selling is not near theone you would like them to.Natural results lack dynamics, you can’t chop and change your meta tags to align with promotions whereas PPCadtexts can easily change to any promotion within minutes, there’s very few marketing methods that can bechanged as quickly and effectively as PPC. And with the current recession still looming we have noticed that a lotof companies want to change their promotional messages with a lot less notice given, PPC gives you the chance topromote these messages straight away.Testing - With PPC you can test different messages, promotions, demographics, geographic regions, calls toaction and landing pages with very identifiable results thanks to Googles Adwords reporting tools. From this youcan learn what your buyers react best to and also what you can improve upon, something that many otherpromotional methods don’t offer.Multi Channel Marketing - PPC ads compliment cross channel marketing through reaffirming brand image andmessages.Inexpensive - In terms of using PPC as a marketing tool, bidding on brand terms is the cheapest keywords thereare as your quality score will be excellent as your keywords will match your display and destination url’s. For sucha small amount of cost, isn’t worth paying this to guarantee you keep your sales at the levels they are instead ofpotentially losing sales by stopping brand bidding.Competition - Not bidding on your brand terms can siphon off leads and sales to your competition. Affiliatesaren’t always honest and if you are running affiliate based PPC schemes and have asked them not to bid on anybrand terms, they could brand bid on your brand when you aren’t in the office to check and it would be hard toidentify that this is happening.© indium online 101865 980 630info@indiumonline.co.uk
  2. 2. If you are running brand ads then it’s more than likely due to you owning the domain that you will be at number 1in rankings for your brand ads, so no one will take this top position. You never know when other competitors maystart bidding on your brand terms so running brand ads is a cheap way of defending your clicks and not losingvisitors.Real Estate - PPC is a cheap way of gaining SERP real estate reaffirming brand confidence. A natural and a paidentry give you 20% of the screen whereas having only having a natural result gives you less. If a searcher seesyour ad twice on a page it reaffirms brand confidence.Drives Conversions - It is not uncommon to see over a 6000% return on brand bidding, an effective way toguarantee income each month for such a small cost.Future Problems - If you leave the auction your rivals will start to receive a better quality score, when you re-enter the auction, your CPC may well be larger as well as having to improve your quality score.Our ExperienceThe only way to tell whether people will still click on your site without a ppc ad is to test. We test the impact ofbrand ppc pausing regularly for our clients, the following relates to tests run across 6 websites during 2009.We gathered results for a 4 week period with brand PPC turned on, then paused the brand bidding for 4 weeks.We then analysed the data for these websites at a keyword level. We compared the sales, visitors and total cost ofPPC spend and also natural listings results for the 4 weeks we ran PPC against the same keywords for the weekswe paused brand bidding (using non-paid keywords in Google analytics to gather natural listings results). We alsolooked at the whole site statistics as a benchmark so that we could see whether the results we had gathered werein line with the way that the whole site performed.The Results • For 5 out of the 6 brands, both sales & visitors dropped significantly. • The average drop in sales for the brand keywords we tested was 34%; the average loss in visitors was 23%. • The PPC cost was very small compared to the additional revenue that we received with PPC turned on.The Next StepFrom looking at the results we had gathered, we then turned back on keywords that didn’t perform well once PPCwas turned off, for most brands this was about 90% of keywords. What we then do is run the same testingprocedure at regular intervals to constantly test and work out what we should be bidding on and what weshouldn’t.In ConclusionIt’s a simple fact that you dont want to waste money for no reason, nobody does be it in business or personally,but it’s difficult to measure what drives the buy completely accurately, it could be a combination of all yourmarketing methods or a mix of natural listings and PPC. But what our experience shows is that you can lose asubstantial amount of sales & visitors through not brand bidding. And as all brands will work and react to differentmarketing methods to different degrees of success, the only true solution is to test. Then test again, and again andagain, and again to make sure that you aren’t losing out on sales and aren’t spending money where you don’t needto be spending money.© indium online 201865 980 630info@indiumonline.co.uk