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7 Reasons to Bid on Your Business’s Brand Name

There are a host of reasons why you should bid on your brand terms. It is not necessary for all businesses, but for many it makes sense to do so. Here are some reasons why.

Pay-per-click (PPC) advertising requires bidding on the right keywords. In Google Ads and other PPC networks, keywords trigger impressions. When a user searches for a keyword on which you bid, the PPC network will serve him or her your ad. Bidding on relevant keywords associated with your business’s products or services will result in more conversions.

Along with product- or service-related keywords, though, you should consider bidding on your business’s brand name as well. Most PPC networks support brand name bidding. By bidding on your business’s brand name, you’ll achieve a higher level of PPC marketing success in several ways. For more information on bidding, check out how Google Ads bidding works

1) Safeguard Traffic From Competitors

Bidding on your business’s brand terms will safeguard high-quality PPC traffic from your competitors. Google doesn’t prohibit advertisers from bidding on the brand names of their competitors. Even if your business’s brand name is trademarked, competitors can still bid on it. Google only prohibits the unauthorized use of trademarks in ad copy and display URLs. For keywords, your business’s brand name is up for grabs.

Competitors may bid on your business’s brand name to try and steal its traffic. While you can’t stop them, you can retain your business’s traffic with name brand bidding. When a user searches for your business’s name and sees two ads, one from your competitor and another from your business, he or she will probably click your business’s ad.

2) High Conversion Rates

You can expect high conversion rates when bidding on your business’s brand name. Users who search for its brand name are familiar with your business. Maybe they’ve purchased a product or service from your business in the past, or perhaps they’ve read about your business in online reviews. Regardless, these users already know your business exists, and by searching for its brand name, they want to engage with it.

According to Wordstream, PPC ads on Google’s Search Network have an average conversion rate of 3 percent to 4 percent. Bidding on your business’s brand name, however, can drive much higher conversion rates. It allows you to reach users who are actively searching for your business, so it can yield sky-high conversion rates. We have seen conversion rates for brand terms as high as 70% for some clients. Learn more about how to increase conversion rates.

3) Inexpensive Cost-Per-Click

Clicks are typically cheaper for brand names than for traditional product- or service-related keywords. Several factors affect the click costs of PPC ads. With that said, PPC networks determine click costs primarily by the maximum cost-per-click (CPC) bids of all advertisers bidding on a given keyword. The more advertisers bidding on a keyword, the higher the click costs will be.

There probably aren’t many advertisers bidding on your business’s brand name. You may occasionally come across a competitor doing it, but most advertisers aren’t going to waste their time or money bidding on your business’s brand name. As a result of the low competition, clicks are inexpensive. You may, in fact, pay as little as 20 cents per click for your business’s brand name.

4) Improved Quality Scores

You can improve your Quality Scores by bidding on your business’s brand name. PPC networks reward advertisers who create relevant and high-quality ads by assigning them high Quality Scores. As the Quality Scores of your keywords improve, your ads will rank higher and require lower maximum CPC bids. The culmination of these effects can lead to a higher return on investment (ROI).

While Quality Scores are assigned algorithmically, brand name keywords usually receive higher Quality Scores than traditional keywords. They are highly relevant to both the ad copy and landing page. When PPC networks process brand name keywords, their algorithms assign them high Quality Scores.

5) Relay Information to Prospective Customers

Another reason to bid on your business’s brand name is to relay relevant information to prospective customers. You can include information about your business, such as its phone number or product offerings, within your ads. Users won’t have to click your ads to see this information; they’ll only have to search for your business’s brand name.

For Google Ads and Bing Ads, you can use extensions to enhance your ads with relevant information. The two popular PPC networks offer extensions as an optional feature. The location extension, for instance, will attach your business’s address to your ads, whereas the call extension will display your business’s phone number. When users search for your business’s brand name, they’ll see this information, regardless of whether they click your ads.

6) Supplement Your Website

Your business probably has a website, and it probably ranks at the top of the search results for your business’s brand name. Using a brand name bidding strategy, though, allows you to supplement your business’s website with a landing page.

If you don’t bid on your business’s brand name, users who search for it will likely end up on your business’s website. Brand name bidding allows you to serve them ads that take them to a separate site or web page when clicked. You can design this landing page to supplement your business’s website.

7) Diversification

By bidding on your business’s brand name, you’ll create a more diverse PPC marketing strategy. Only bidding on a few traditional keywords is like building a house of cards. If one of the keywords stops returning a positive ROI, it may send your entire PPC account tumbling into the red zone.

Brand name bidding will prop up your PPC account so that it’s better protected from extreme fluctuations. Clicks for your business’s brand name are inexpensive and drive high conversion rates. Therefore, they’ll counter the negative impact of underperforming keywords. You may want to set up a separate campaign specifically for your business’s brand name. In this campaign, you can create ads targeting your business’s brand name.

Keywords are the bedrock of all PPC marketing campaigns. You can’t create PPC ads without bidding on keywords. But don’t forget to bid on your business’s brand name. It will prevent competitors from stealing your business’s traffic, drive higher conversion rate, lower your click costs, improve your Quality Scores and more.