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Bidding on the competition: Is it really worth it?
Bidding on your competitors' brand terms could yield positive results, but columnist Jacob Baadsgaard warns that it might cause problems in the long run.
These days, bidding on your competitors’ branded terms has become a common practice for paid search advertisers.
To be honest, the logic behind this trend seems sound. After all, if someone is typing in a competitor’s business name, they are interested in what your competitor has to offer… which means they are probably interested in what you have to offer.
Plus, anyone who is searching for your competition is probably a bottom-of-the-funnel potential customer. They know what their problem is, and they are close enough to buying that they actually know the name of a business that can solve their problem — it just doesn’t happen to be the name of your business.
Round that all off with a lower cost per click (CPC) and the satisfaction that comes from stealing sales from your competitors, and bidding on the competition seems like a great — if not mandatory — idea.
But rather than blindly jump on the branded terms bandwagon, let’s take a step back and ask a simple question: Is bidding on your competitor’s branded terms right for your business?
Opinions expressed in this article are those of the guest author and not necessarily Marketing Land. Staff authors are listed here.