There are advantages and disadvantages, but if you look at the bigger picture bidding on branded keywords with proper strategy pays off big time. You need to make sure before you choose your branded keywords for your AdWords campaign to apply this strategy. Branded keywords are usually very cheap and a great way for a brand to gain more traffic at lower click per cost.
Don’t just bid on your keyword, if you dominate the first page results:
Bid on your branded keywords when it includes other generic keywords, in this example, we have “injury lawyer Toronto” along with “Pace law” keyword:
Check search results of your brand name on the first page and find out do you dominate it or not. If you don’t then you have to bid. Example: “Smiles dental clinic” is dominated by other players then the local clinic itself. Here you should be bidding on your branded keyword:
Don’t bid on keywords like “address” “login”, keywords where you know 100% your current customers are trying to look for that information. For example a bank bidding on keywords for “online banking login” which is used by its current customers. In this example, TD Bank is already ranking but they are bidding on a keyword where they are wasting money.
You can bid on keywords like “deal” “special offer” etc. In this example, Walmart can have an ad with deals and targeting these searchers who are clearly looking for a bargain. Here if you are from Home Depot or Target you can bid on keywords like Walmart deals and get a cheap cost per click.
We will recommend to setup 3 campaigns for just branded keywords: Exact, broad & phase match. (E) stands for exact match, (BM) stands for modified broad match, and (P) stands for phrase match.
Run these ads for 30 days to see which campaign is performing better and tweak it accordingly. Great thing about branded keywords is you can try it out with a relatively lower budget.
Ali Salman is an online marketing strategist who have worked with Coca-Cola, Extreme Pita, Mucho Burrito, KIA, Honda and other Fortune 500 companies. Ali Salman now heads Rapid Boost Marketing - Canada's fastest growing search marketing agency. RBM clients include Fortune 500's and medium size businesses across North America. Ali as RBM CMO leads his team in building and managing quality, high-performing and cost-effective interactive campaigns and programs for our company's customers and partners. In his career, he has significantly improved campaign performance for large brands such as Government of Alberta, Liberal Party, Workopolis, Cathay Pacific, as well as medium to large retailers and high-tech B2B-enterprise niches.
Ali and his team develop online promotional concepts that spark viral growth through search and social media for RBM clients, devising strategies that use search engines and more to reach key demographic segments in the ways they're most likely to be receptive. Ali Salman also oversees corporate marketing initiatives for Rapid Boost Marketing, including strategic communications counsel, public and analyst relations and client education programming.