From the Market Motive Forums: Is it a good strategy to spend money for brand terms?
In most cases, it is worth buying your brand terms and company names. A lot of companies test buying their brand vs. not buying it, and then make a decisions based off the revenue delta. Testing is always a good idea!
As a general overview: Here are the top 4 most common reasons companies buy their brand terms.
1. You can direct those who know your brand to a different page.
By buying your brand name, you can direct people who already know you to more in depth information about you – such as a newsletter page, what’s new, etc. That way, you are getting exposure for items that normally don’t get a lot of conversions/exposure.
2. There’s a common ‘halo’ effect by being listed twice on the page.
When you buy your brand, you usually get more total clicks than if you didn’t buy your brand. Now there is some cannibalization of your organic traffic, but this is a pretty common scenario: If you don’t buy branded traffic, you get 1000 branded organic clicks a month (and 0 ppc clicks). If you do buy your brand, you often will get 800 organic and 400 PPC clicks; for a total of 1200 visits.
In this case, you did cannibalize your organic traffic by 200 clicks; however, you also increased the total number of clicks you received. This used to be very easy to test & measure before ‘not provided'; however, you can still measure it to some degree using the ‘paid organic’ report that is under the dimensions tab.
3. Lock out competition.
If your competition is buying your brand, then you really need to buy it. If you don’t; you’ll lose some great traffic to your competitors. Ouch!
4. It increases your overall account CTR.
Increasing your overall account CTR often helps giving you lower first page bids on other terms. This quality score lift is about impossible to measure and prove; but it does exist.
There are other reasons people do it; like showing the high Return on Ad Spend (ROAS) of the channel, and other things that are more important to internal reports and justifications than to true PPC metrics; but those are the most common business reasons to buy your brand terms.
There’s not cut-and-dry answer. Feel free to test it, and discover for yourself what’s best for you and your brand.
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