SEO

What’s The Real Value of Brand PPC?

Many of our PPC clients (and from what I hear from other pros and agencies, many of their clients) at some point start to believe they shouldn’t be spending money on keywords for their brand names, service name, or product names. They want to advertise only on more general keywords. I believe this is a mistake for a number of reasons.

The client assumes:

  • If I stop advertising for my brand name, people will click on my natural search listing anyway. I’ll get exactly the same number of visitors, and it won’t cost me per click!
  • Anyone that searches for my brand name is probably a repeat customer, not a new one.
  • SEO and PPC listings are equally valuable, the only difference is the cost.

A number of internet experts and researchers believe:

  • When you don’t have an ad AND a natural listing, you have less presence on the search result page, and thus more competition.
  • When you show both, you make a bigger impact on the buyer, which increases attention and trust, thereby increasing traffic, conversions, conversion rate, decreasing cost per conversion, increasing ROI.
  • Brand keywords are usually cheaper than general ones, so the ROI on that ad spend is higher.
  • Most of the industry uses “last click analytics” which means we have a blind spot about how many touchpoints a customer hit before converting.
  • Our internal research shows that about 50% of people who convert on a brand keyword are actually new customers.
  • In some cases, you can lose significant brand recognition and natural search sales if you stop advertising on your brand names.
  • The ability to customize ads and feature new offers in PPC ads gives it a striking advantage over SEO meta descriptions.

PPC’s Partial Measurability Can Be Held Against It

PPC is so highly measurable that it could be held more accountable than other channels- but we don’t see the effect of PPC on other marketing channels, because they get credit for the conversion in last-click analytics. Brand awareness generated from PPC ads can translate into conversion where the last click attributes credit to natural search or email.

Both brand and general searches could be conducted by the same prospect before buying. The multi-touchpoint journey is complicated, and few analytics packages track it. Hardly any companies are using that kind of data to discover the real partial value each channel contributes to ROI.

multitouchpoint450 Whats The Real Value of Brand PPC?

A Few Touchpoint Paths To Consider

Yahoo PPC has a concept called “assists” that hints at this big picture. For one client, 14% of Yahoo PPC sales were assisted by multiple keyword searches. That’s just within the PPC channel.  25% of those brand name keyword sales were assisted by a general keyword search. A blog post by Alan Rimm-Kaufman suggests 6-11% of brand keyword sales are preceded by general searches. Our numbers are different. There may be a high amount of variability per client and vertical, so we watch these patterns per client.

We can only partial see the multi-touchpoint trails, so we need to assume that whatever ROI we see from PPC is only part of the picture. (Indeed, even AdWords’ 30 day cookie and its attribution to the date of first click means that PPC reports are only accurate 30 days or more before the reporting date.) PPC ROI is usually higher than first glance suggests.

Client Case Studies

One client, fighting big time competition, seasonality issues, and focusing on general keywords, was only getting a 250% ROAS (return on ad spend, or revenue divided by ad cost). But when we include call tracking data and look at all sales that originated from PPC, the ROAS is 350%.

Another client stopped running brand keywords in PPC and when we compared them to two similar clients (same vertical, similar business structure), we found something very interesting- their natural search sales dropped dramatically. The comparison clients kept a consistent brand vs general PPC spend percentage and didn’t see this drop in natural search bookings. Somehow, brand ppc was leading to sales directly preceded by natural searches.  This suggests that brand PPC might have a brand awareness raising effect, which isn’t ridiculous to consider.

brandppctonaturalsearch450 Whats The Real Value of Brand PPC?

Natural Search Bookings Decreased After Brand PPC Ceased

PPC Brand vs General Keyword Recommendations

I’d recommend a mix for most customers. Generally speaking, each marketing effort makes the others more effective. Until we have complete multitouchpoint analytics that can guide us to the optimal mix, I suggest you allocate your budget according to your goals.

  • If you’re more aggressive about new customer acquisition, spend more on general keywords.
  • If you’re more focused on high ROI, spend more on brand keywords.
  • If you don’t care about getting new customers, stop PPC and just email your house list.
  • If you don’t have an email list yet, get more aggressive with PPC.
  • If you want to feature special offers to new customers, use PPC- SEO can’t be customized that quickly.
  • If you want to feature special offers to repeat customers, use email.
c8aefda53a5c9e3de10e0468f9d99821 64 Whats The Real Value of Brand PPC?
Brian is author of The Like Economy: How Businesses Make Money With Facebook and Facebook Marketing: Leveraging Facebook's Features For Your Marketing Campaigns, How to Get More Fans on Facebook, and LinkedIn For Business: How Advertisers, Marketers and Salespeople get Leads, Sales and Profits from LinkedIn Brian has 12 years experience as a freelance consultant and digital marketing agency director. His hands-on business experience, cutting edge insights, background in improv and stand up comedy culminate in a keynote speaker, and social media trainer who leaves every audience not only entertained, but armed with powerful strategies and tactics.
c8aefda53a5c9e3de10e0468f9d99821 64 Whats The Real Value of Brand PPC?

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15 thoughts on “What’s The Real Value of Brand PPC?

  1. A few years ago during the Holiday Season, FTD’s Marketing Department decided to stop their paid advertising campaigns because they had achieved strong search engine rankings. Not surprisingly, the entire marketing team was fired due to a significant sales decrease.

  2. With Google’s trademark policy change coming on June 15, its more important than ever for brand owners to consider bidding on their brand terms in paid search.

  3. Great article Brian

    We too found similar results with and without the PPC showing up along with the organic listings – there’s clearly a “brand-building” or “brand strengthening” aspect here.

    Whether it’s from a perceived trustworthiness perspective, visual affirmation, some subliminal mentality or what, I don’t know.

    All I care about is that it does matter and does make an ROI difference.

  4. After I got 2 of my websites to a good page 1 listing, I thought I could save that PPC money too. I cut it out for one site first, then the other, and sales and bottom line both decreased. I am back to doing the PPC also. I did find that I could lower my daily budget and increase profitability.

    Mike Stokes
    Baton Rouge, LA

  5. Great stuff here, Brian, and nice to see some data behind it.

    Additionally, depending on your branding, you could use impression data to see how it’s trending especially if you’re running aggressive advertising campaigns which are not easily measurable.

    And to your point, it’s very easy to market special offers to those searching your brand through PPC ads.

    And, as Alan Bleiweiss points out, it ultimately comes down to ROI, which through my experience has been pretty darn good.

  6. Dear Brian,
    It’s relatively a very good website and I’ve found a very clear analysis of PPC with charts and graphs. It’s very useful information and i like to find it interesting.
    Thaks anyway,
    Regards,
    Ranjan.

  7. Unless You’re Google (Even Then)…

    Bid on Your Brand!

    I witness customers profit from this strategy every day.

    In fact, they often profit off other business owners who aren’t “Minding the Store” by bidding on their brand keywords and siphoning away leads/business.

    Want to get more useful tips and SEM advice?

    Follow me on Twitter:
    http://www.Twitter.com/JoeMescher

  8. I firmly believe that any brand presence is good presence. To have both the natural search rankings and PPC ads appearing in front page defintely adds to the power and strength of the company’s branding.

    The question is, whether the PPC ads should be put up by the branding company or from the affiliates of the brand. Many companies fail to realise the importance of affiliates bidding on the brand name and put a stop to it.

  9. Great post Brian. I encourage clients to bid on their own company and product names primarily because – and I’m not sure if this is exactly covered by your second bullet point – it increases credibility. Prospective customers view companies that are willing to invest ad dollars in their own name as more trustworthy, established brands.

  10. Mason – I think I’m one of those companies that has failed to realise the importance of affiliates bidding on the brand name instead of (or as well as?) the client.

    Could you enlighten me?
    Thanks.

  11. Excellent post Brian, the results literally shows that Brand PPC is of great importance besides search rankings.

    I would recommend anyone to bid on their brands as well. Preferable having the whole page listings with brand PPC.

    Collins – I think he could have meant that the affiliates could have provided additional Brand PPCs boost. Imagine having the whole search page listings splattered with Brand PPCs by both the clients as well as affiliates.

    This is one study Brian could take up as well, keeping in mind that Google has recently implemented their one-domain PPC rule. The only way for affiliates to bid Brand names now is to have another domain name. Now multiply that by the number of affiliates and you get Brand PPCs for pages and pages of google search listings on end.

    This could do wonders and scale up the figures. Both clients and affiliates stand to gain. A Win-Win situation.

    Just my 2 cents…

    Will