PPC

Bidding on brand terms in Google PPC

August 10, 2010 in All posts

As has been mooted for a while, Google UK have announced that anyone will be able to bid on brand terms in PPC campaigns, where before it was restricted only to the legit owners of those brands. September 14th is the date that this will start.

Google have been accused of profiteering off brands who’ve built trust for their brands via search – but Google say that it simply widens the footprint of those brands by allowing 3rd parties to use that brands’ name in their PPC copy. I am quite split on the issue: on one hand it does indeed widen the footprint of a brand – but this is perhaps being naive about what Google will gain out of this.

“Why is it naive?” some may ask. Well, it’s worth remembering that Google isn’t here to help people find what they want – it’s primary business is to sell advertising online: that’s what they do. It’s in their DNA. Kidding oneself that they care about any given brand’s presence online is wrong. What they care about is making money. If people can find what they want in the process, that’s a nice bonus (and helps their “Don’t do evil” image).

Don’t misunderstand me; I don’t think that making money is wrong (far from it). But working under the illusion that Google ever does anything that wouldn’t benefit their bank balance most certainly is wrong. You don’t get something for nothing.

The point is that Google stands to make a lot of money from people – brand owners, their competitors, interested parties, novices who want to try something new – everyone. They’ve basically changed the bidding format and made it completely open. And, yes, the much-vaunted Quality Score will help keep the costs down as it should weed out people who’re just trying to bid on brand terms for products that aren’t related/relevant – but for competitors who’re selling an identical product but, say, at a better price, this could see quite a bit of cash arrive in Google’s wallet.

How nice.

I also wonder how this will affect affiliate relationships. They are often restricted on bidding on brand terms, so what does this mean for these rules? Will affiliates have to submit to a new tranche of rules to keep promoting a brand’s products? Will we see an increase in grey/blackhat affiliates try their luck anyway? Or will it mean affiliates and brands embrace a stronger, more communicative relationship – a gentlemans agreement-esque approach whereby they agree not to bid? What about competitors affiliates? Might they be encouraged to bid on competitor brand terms to steal away business?

Although I really cannot stand PPC, that last point could see some interesting tactics emerge…