Pay-per-click (PPC) advertising has become a staple in the digital marketing arsenal, offering businesses a powerful tool to drive targeted traffic and generate leads. One of the perennial debates in the realm of PPC revolves around whether or not companies should bid on brand terms. In this blog post, we'll explore both sides of the argument to help you make an informed decision for your PPC strategy.

Why You Should Bid on Brand Terms:

1. Protect Your Brand Identity: By bidding on your brand terms, you ensure that your ads appear prominently in search results when users are actively searching for your brand. This helps to safeguard your brand identity and prevent competitors from poaching your potential customers.
2. Control the Messaging: When you bid on brand terms, you have full control over the messaging and content of your ads. This allows you to craft tailored ad copy that highlights your unique selling points, promotions, or special offers, ensuring a consistent brand experience for users.
3. Maximise Visibility and Click-Through Rates (CTR): Studies have shown that bidding on brand terms can significantly increase your ad's visibility and click-through rates. Users are more likely to click on ads that feature familiar brand names, leading to higher CTRs and ultimately, more conversions.

Why You Shouldn't Bid on Brand Terms:

1. Cannibalisation of Organic Traffic: Some argue that bidding on brand terms may cannibalise organic traffic, as users who would have clicked on your organic listing may now click on the paid ad instead. This can result in unnecessary spending on clicks that you would have received organically.
2. Competitive Bidding Wars: Bidding on brand terms can sometimes lead to competitive bidding wars, especially if competitors also target the same keywords. This can drive up the cost per click (CPC) and erode your ROI, making it less cost-effective to bid on brand terms.
3. Limited Reach: Since users who are searching for your brand terms are already familiar with your brand, bidding on these keywords may have limited reach in terms of attracting new customers. Instead, your PPC budget may be better allocated to targeting broader, non-branded keywords to reach new audiences.

Conclusion:

In the debate over whether or not to bid on brand terms in PPC activity, the answer ultimately depends on your specific goals, budget, and overall PPC strategy. While bidding on brand terms can offer numerous benefits, including brand protection, increased visibility, and control over messaging, it's important to weigh these benefits against potential drawbacks such as cannibalisation of organic traffic and competitive bidding wars. Ultimately, the key is to carefully analyse your unique circumstances and objectives to determine the best approach for your PPC campaigns.