Branded Keywords: To pay or not to pay?
We recently had a client that requested we bid less aggressively on the brand keywords as they are already positioned high in the organic listings. This is a pretty common request; however, it’s one that we rarely advise. What many clients forget to consider is the following:
- How will this affect your overall PPC campaign results
- How many people prefer to click on PPC results verses SEO
- Organic ranking on the top engine syndication partner sites
Based on our credo that the client is always right, we decided to decrease bids on branded keywords and let organic have center stage. The test we underwent dropped total daily clicks on brand terms from 500 clicks per day on average to 70. Additionally, the cost per lead jumped 287%. Why? Based on the analysis, we came to the following conclusion regarding these two elements: (1) not everyone clicks on organic and (2) Google Search syndication partners generated a large percentage of leads, of which most put preference on PPC results above organic on the search engine results pages (SERPs). Let’s examine these in more detail.
What most clients forget when wanting to implement this kind of strategy is that not everyone likes to click on organic results. A number of studies out there that predict that organic results are more popular than PPC; however, the numbers above suggest otherwise. We need to remind ourselves that these studies are purely guidance, not the final answer. There is no possible way a study can detect continually evolving human behavior―searchers and internet users become savvier by the day.
It is also imperative to understand that when you advertise on Google AdWords (PPC), you are also advertising on thousands of search syndication partners if you opted in while initially creating your accounts in Google. Do you know where you rank organically on all those partner sites? Do you know the layout of search results on those partner sites? Are PPC or SEO results given preference on these sites? All of this can have a huge effect on campaign delivery, traffic and performance, particularly when deciding organic verses PPC and why it is imperative even for branded keywords to have a strong strategy in place for both.
Let’s take a look at three of Google’s top syndication partners, two of which―AOL and Ask ―contribute a total of 8.7% share of searches according to the latest comScore numbers.
The keyword I typed in (irrelevant to my client, of course) was “Versace.” For Google syndication results on Earthlink.com, the top seven results are PPC sponsored results – none of which direct to www.versace.com, showing that PPC results on a large Google syndication partner like Earthlink are given predominance over organic results. The organic results fall well below the fold on the first page of results.
Below is a similar example for AOL―not as substantial as Earthlink, yet Google PPC is again more dominant than organic results.
And we see a similar scenario with Ask as well:
As you can see, lowering or killing off brand term pay per click management can have detrimental affects on your campaign performance and branding as a whole. Before you make a rash decision, remember to consider all the aspects that can affect the outcome and determine if it would be wise to do so.
~SammieAnnie
on September 14th, 2008 at 10:35 am
Great post. Some concrete numbers for one of the debates that always rages on.
on September 18th, 2008 at 10:40 am
I agree 100%, penny pinching on one’s brand name is not a strategy that I would ever advise. The other element to consider is that advertisers have zero direct control over their organic ranks. If you rank high one day, the engines may change the algorithm the next, and you’ll be left scrambling. Through PPC, you have control over where you appear at any given time. It’s the difference between crossing your fingers, and a guarantee. Most people are willing to pay for the latter.
on October 2nd, 2008 at 9:52 am
Nice post – I came to the same conclusion, looking at clicks on organic clicks Vs paid ad clicks, estimated what would happen if we scale back on branded keywords. One thing though, when people click on paid ad, the intent is perhaps more clear, they are ready to take action! More Information seekers prefer organic results?
On branded keywords clicks, should you consider them as part of organic clicks? Any pros and cons?