Brand bidding is not worthwhile

Brand bidding means that keywords are booked for brand terms in AdWords, for example. Of course, this makes sense for your own brand, but sometimes the brands of competitors are also booked in order to benefit from searches for them. The e-commerce expert Trusted Shops has taken a closer look at this method and lists three reasons why brand bidding is actually not worthwhile.1. Dissatisfied visitorsIt can be problematic if visitors are to be generated from search queries for a popular brand that the online store does not have or does not fully stock. This can disappoint and frustrate users who come to the store by clicking on the ad.example: A store sells sports shoes, but mainly those of the still unknown brand X. There are also a few sports shoes from the well-known and popular brand Y. As there are significantly more search queries for "y sports shoes" than for "x sports shoes", the retailer chooses the strategy of entering "y sports shoes" as a keyword.2. poor quality signalsDisappointed visitors lead to the second problem: Google AdWords recognizes that visitors do not linger in the store and return to the search results page. As the actual click price is made up of the bid and the quality factor, among other things, the click price will be higher if the quality drops (all other things being equal). Whether the third-party brand appears in the ad or not also has a direct impact on the quality factor. If it is included, the link between the keyword and the ad is greater - but then the store operator is taking a legal risk. If the brand is missing from the ad, the quality is also lower due to the missing link. In general, AdWords checks whether the keyword, ad and landing page match thematically.3. competitionAnother example: An online retailer books the store name of its competitor as a keyword, which creates another problem. The competitor, who is normally the only bidder for his own brand, has competition in the auction. With several bidders, the price for a click increases, which means that unnecessary money is spent, as the retailer will normally never get as good a quality score as the actual brand owner. The latter usually has a much stronger link from keyword to ad to landing page. On the other hand, the competitor may also start bidding on the retailer's brand, which increases the click price for the ads. If the brand even appears in the ad itself, there is also the threat of legal consequences.