As Black Friday approaches, brands are preparing for one of the most lucrative yet challenging sales periods of the year. But one issue that continues to frustrate brands is brand bidding—a practice where affiliates, resellers, and competitors bid on a brand’s own name in search engine ads, effectively diverting traffic and potentially driving up the brand’s advertising costs. Here’s a closer look at why brand bidding is such a headache for brands and how they can manage it effectively this Black Friday season.
What is Brand Bidding?
Brand bidding refers to the practice where third parties bid on a brand’s trademarked keywords in paid search advertising, such as “Nike shoes” or “Apple iPhone.” While some companies authorize affiliates to bid on their brand keywords to increase visibility, others find it problematic, especially when unauthorized affiliates or competitors leverage the brand’s keywords to siphon off traffic.
Why Do Brands Dislike Brand Bidding?
Increased Advertising Costs Brand bidding drives up the cost per click (CPC) for the brand’s own ads. As multiple parties bid on the same brand terms, the auction for these keywords becomes more competitive, which means the brand has to spend more to secure top ad positions for its own name.
Diluted Brand Experience Unapproved ads can lead to a fragmented and inconsistent customer experience. When customers see multiple ads from third parties using the brand’s keywords, they may be led to other sites, sometimes with different products, services, or even subpar quality. This dilutes the brand’s image and risks customer confusion.
Traffic and Revenue Leakage When affiliates or competitors bid on a brand’s keywords, they may siphon off potential customers who were searching specifically for that brand. This “traffic leakage” means the brand loses direct website traffic, and potentially revenue, to competitors who are taking advantage of the brand’s name.
Damage to Brand Reputation Unauthorized ads can lead customers to untrustworthy sites or poor shopping experiences. For example, counterfeit products or misleading offers can harm the brand’s reputation. With third parties controlling the message, it’s difficult for the brand to maintain the integrity of its advertising.
Challenges in Measuring ROI Brand bidding by third parties complicates tracking and measuring the effectiveness of a brand’s own ads. With multiple parties bidding on the same keywords, brands may struggle to identify the actual ROI of their campaigns, particularly when conversions are being split across various affiliates or even competitors.
Strategies to Keep Brand Bidding in Check This Black Friday
1. Establish Clear Affiliate Guidelines
If affiliates are part of your advertising strategy, establish and communicate clear guidelines for how they can use your brand in their ad campaigns. Define specific do’s and don’ts, such as prohibiting direct brand bidding and limiting bids to certain keyword categories. Clear guidelines help affiliates understand their role without infringing on the brand’s direct marketing efforts.
2. Use Negative Keywords
Implementing negative keywords for competitors’ names or certain brand-adjacent terms in your campaigns can reduce the likelihood of your ads showing up for irrelevant searches. Similarly, instruct affiliates to add your brand name as a negative keyword to avoid bidding on your brand terms, which can protect your bids from competing with affiliates on your own keywords.
3. Monitor Keyword Bidding Regularly
Monitoring your keywords and ad placements regularly is essential for staying ahead of potential brand bidding violations. Utilize tools like Google Ads Auction Insights and third-party brand monitoring services to keep an eye on who is bidding on your brand keywords, track unauthorized ads, and take action as soon as you spot a potential issue.
4. Use Trademark Protection in Ad Platforms
Many search engines and ad platforms, like Google, offer options for trademark protection. By registering your brand as a trademark with these platforms, you can limit the ability of unauthorized third parties to use your brand terms in their ads. Report any violations promptly to ensure quick action from the platform.
5. Collaborate with Legal Teams
During peak sales periods like Black Friday, collaborating closely with legal teams is key. Ensure your legal team is ready to take swift action against violators and understand the protocols for reporting to platforms or issuing cease-and-desist letters to affiliates or competitors who violate brand bidding guidelines.
6. Invest in a Competitor Analysis Tool
Invest in a competitor analysis tool to understand your competition’s ad strategies and see if they’re bidding on your brand keywords. Tools like SEMrush, Ahrefs, or SpyFu can provide insights into which competitors or affiliates may be using your brand terms. This data can help inform your strategy and serve as evidence when taking action against violators.
7. Optimize Your SEO Efforts
While paid ads are important, focusing on your organic search engine optimization (SEO) is another layer of protection. A strong SEO strategy can help your site rank at the top of the organic results, minimizing the impact of third-party ads and reducing reliance on paid brand terms.
Wrapping up
Take Charge of Your Brand This Black Friday
Brand bidding can pose significant challenges, especially during high-traffic sales events like Black Friday. By proactively setting up clear guidelines, using negative keywords, monitoring ad placements, and working with legal teams, brands can regain control over their brand keywords and ensure a consistent, quality customer experience.
This Black Friday, keep a close eye on your brand’s digital landscape, ensuring your traffic, reputation, and advertising budgets remain safeguarded against unauthorized brand bidding.
Best of luck to us all!