The question of whether or not to bid on your brand name when using paid search is up for debate among marketing professionals. Many marketers believe bidding on your brand name is an effective strategy for paid search, while others believe it is not as effective as it has been touted in recent times. Ultimately, it will likely come down to what will be most effective for your paid search campaign.
How do you know whether bidding on your brand name when using paid search will be effective? You will want to do a cost benefits analysis. Does bidding on your brand name actually achieve results that you wouldn’t already be achieving with organic search? Comparing the cost of bidding on your brand name to the benefits will allow you to make an informed decision.
Run a scenario where your campaign relies solely on organic search. Run another scenario where you bid on your brand name. By running both scenarios, you’ll be able to estimate which campaign strategy will yield the best return. If you aren’t already bidding on your brand, you already know your baseline return. All you will have to do is determine whether bidding on your brand name will yield a better return.
In order to determine if bidding on your brand name will yield a better return, you will want to look at how much traffic you would lose to other sites by not bidding on your brand name. You will also want to determine the value of your organic site traffic compared to your paid site traffic. Compare the user behavior of organic and paid search traffic.
Another consideration is the profit of a conversion or sale. In order to get an accurate look at the effectiveness of paid search, you need to know how much you profit you gain from a conversion. You can work with your marketing professional to determine how paid search will impact your the profit of your conversions.
Bidding on your brand name will allow you to manage your brand messaging. You can drive traffic to landing pages with strong calls to action. Rather than relying on search engine algorithms, you will be in control of how your brand is represented to your target search demographic.
As you consider bidding on your brand name in your paid search campaign, you’ll want to look at the cost per incremental click and understand where lost incremental clicks may end up. Ultimately you will need to go with the strategy that maximizes your profit. If you find that bidding on your brand name will maximize your profit, then you will want to act accordingly and monitor the campaign carefully.