Brand bidding, also known as PPC brand bidding, is a digital marketing strategy where businesses bid on branded terms or keywords associated with a third party, often a competitor. When a company engages in brand bidding, it bids on keywords related to another company’s brand. For instance, if Company X wants to attract customers searching for Company Y’s brand, it can bid for that brand and appear in search engine results. The goal is to divert traffic away from the competitor’s website.
Brand bidding is sometimes viewed negatively, especially when it involves using a third party’s brand name. For example, Company X might bid on Company Y’s brand name, causing Company X’s ads to appear when someone searches for Company Y. This redirection aims to shift visitors from Company X to Company Y. Additionally, brand bidding can impact the cost of bids in search engine marketing. The more companies or users bid on a specific keyword, the higher the ad price for that keyword becomes. Competitors bidding on a brand name can drive up the cost for that brand’s own ads due to increased competition.
Despite the cost increase, bidding on your own brand can be beneficial. It leads to more traffic to your website, especially when competitors also bid on your brand. Smaller companies can tap into additional traffic for specific keywords and long-tail combinations. Companies can engage in brand bidding on advertising platforms like Google AdWords, Yahoo!, and Bing Network. However, they must exercise caution to avoid legal issues.