In the competitive landscape of digital marketing, the approach to brand search strategy has undergone significant transformation. Traditionally, marketers leaned heavily on paid search ads to safeguard their brand visibility in search engine results. However, emerging insights suggest that this reliance may come at an inflated cost, especially when organic listings could achieve similar outcomes without the added expenditure.
The foundation of the current discourse around brand search strategy can be traced back to a pivotal study released by Google in 2011. This incrementality study posited that a staggering 89% of clicks on paid search ads would not have been replaced by organic clicks if the ads were paused. This finding led to an aggressive push for brand term investment, influencing marketing strategies for over a decade. Yet, this research has faced scrutiny for its limitations. It primarily focused on competitive auctions, neglecting scenarios where brand searches occurred without competition. Consequently, many advertisers have begun to reassess their strategies, recognizing that in less competitive contexts, organic results can effectively capture user intent.
Understanding user behavior during brand searches is critical to grasping this paradigm shift. When consumers search for specific branded terms, such as “Acme Supply Company latex gloves,” they often exhibit high intent and brand loyalty. Research indicates that even when faced with competing offers, users tend to stick with their preferred brand. This behavior raises questions about the necessity of aggressive bidding on branded terms, suggesting that a more measured approach may be sufficient.
Another pervasive concern among marketers is the fear of competitor conquesting—where competitors bid on brand terms to capture traffic. However, extensive analysis of conquesting campaign performance reveals that these efforts frequently yield disappointing returns. In many cases, users searching for a specific brand are resistant to competitor alternatives. This insight challenges the notion that high spending on brand terms is essential for maintaining market share and encourages advertisers to focus on actual performance data rather than competitive fear.
The evolution of intelligent brand bidding solutions reflects a growing recognition of the need for more strategic approaches. Various technologies now enable advertisers to monitor competitive presence in brand auctions and adjust bids accordingly. Features such as real-time auction monitoring and automated bid adjustments based on competitor activity allow for a more nuanced bidding strategy. Agencies utilizing these tools report significant savings on brand spend—up to 20%—without sacrificing overall revenue.
Recent changes in advertising platforms have further complicated the landscape. Google has gradually reduced advertiser control over keyword matching and brand traffic, leading to unintended bidding on competitor terms and increased brand term inclusion in campaigns like Performance Max. This shift has resulted in advertisers feeling compelled to raise their brand spending in response to perceived competition, despite much of this dynamic being driven by Google’s broad matching practices rather than intentional competitor strategies.
Despite the arguments against heavy brand bidding, there are certain scenarios where this strategy remains valuable. For instance, during times of reputational crisis, controlling the search engine results page (SERP) narrative through paid search can be essential. Additionally, time-sensitive promotions and new product launches often benefit from the immediate visibility that paid search provides, as organic search may not respond quickly enough to rapidly changing content.
The overarching message for marketers is clear: brand bidding should not be evaluated in isolation. A holistic approach that considers both paid and organic search performance is crucial. Advertisers must critically assess their organic presence, evaluate the true competitive landscape, and explore alternative strategies for targeting new customers. By doing so, they can optimize their marketing budgets, ensuring that resources are allocated effectively.
Moving forward, it’s crucial for marketers to question default settings and remain vigilant about their advertising strategies. Testing different approaches, such as geographic split tests, can reveal valuable insights into the performance of regions without brand ads, often showing that organic clicks can fill the gap. Ultimately, the goal is not to eliminate brand bidding but to adopt a more strategic and informed approach that aligns with actual performance data and market dynamics.
In a world where every dollar counts, adopting a smarter, more nuanced brand bidding strategy will not only enhance marketing effectiveness but also yield significant savings—an outcome that any CFO would appreciate. As the digital marketing landscape continues to evolve, staying informed and adaptable will be key to maintaining a competitive edge.