A bid refers to the amount of money you can pay for every click of an ad. During the PPC campaign, you need to deal with automated or manual advertising strategies. The digital marketing world has a trend of bidding on branded terms to promote a business. You might have placed your bid on your own brand-related term. However, should you bid on your competitor’s branded keywords? A brief discussion on this topic will help you make the right decision.
Learn about branded keywords for your advertising campaign
A branded keyword is a term used for a search containing a company’s name. For instance, Ford trucks and Nike shoes are some examples of branded keyword use. On the contrary, non-branded keywords include no company name.
Is it legal to bid on competitor’s keywords?
There are some questions about the legality of bidding on branded terms of competitors. Google’s advertising policies have introduced some guidelines. It claims that there is no issue if the ad text has other brand’s trademarked terms. However, your ads must not lead users in the wrong direction.
Advantages of using competitor brand terms for PPC bidding
There are some reasons for selecting competitor-branded keywords for the bidding process.
Minimal competition – In the PPC world, the practice of bidding on another brand’s search term involves low competition. Only a few brands bid on the search terms. So, these branded keywords will be highly affordable and allow you to get qualified leads.
Develops a brand awareness – You might have used another brand’s name for the ad content. However, the search network will display your branded advertising copy. Thus, it is a powerful tactic for promoting your company for similar services or products.
Acquire new customers – Sometimes, customers of a particular brand, (such as UberEats) click on the sponsored advertisements of a different brand (like DoorDash). While bidding on competitor brand keywords, you may find a low conversion rate. But, the CPC will also be comparatively low. A new customer’s lifetime value is higher.Â
Attract high-intent target audiences – When you create a top-of-funnel advertising campaign, competitor terms attract new users who have not visited your site. If some users have not been converted, run a remarketing campaign. You may also take advantage of Google’s audience tools. For instance, DoorDash can develop a custom intent audience to target those who have used branded search terms.
Avoid risks while using competitor branded keywords
There are some risks to using competitor brand terms for your online bidding. You must not use the competitor’s brand names in the ad description and headlines. If your competitor has reported against you, Google will pause your campaign. In case your PPC budget is limited or you have campaign performance issues, you may choose alternative strategies.
To make competitor brand bidding riskless, you can hire certified and qualified experts from companies like kingkong.co/ppc-management-agency/. It has the best PPC professionals to run your ad campaign and place bids efficiently. You will get the desired result from the campaign.
