DAte
Dec 24, 2024
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Studies show mixed results about branded paid search effectiveness. Research at eBay points to minimal effects from branded search campaigns. Other studies paint a different picture and show these campaigns can deliver substantial results. One business documented $240,000 in extra yearly revenue. The value of branded search changes by a lot based on market conditions and competition. Companies that skip branded search ads risk losing visibility. Their competitors often bid on brand terms through a practice called "conquesting." This piece explains the times and ways branded search campaigns deliver real returns on investment.
The Real Value of Branded Search Campaigns
Branded campaigns deliver the lowest cost per click and highest conversion rates in digital advertising portfolios. In fact, branded keywords convert twice as well as non-branded keywords. All the same, marketing teams question whether these campaigns add value beyond organic search results.
Why companies avoid bidding on their own brand terms
Three main reasons make companies hesitate to invest in branded search. They worry about unnecessary spending on traffic they might capture organically. One expert puts it this way: "If you rank well organically for your own branded terms, and competitors are not bidding on your brand name, you're spending money when you do not really need to". Budget-conscious marketers would rather spend money to acquire new customers than target users who already know their brand. Companies also worry about cannibalization—paying for clicks that would have come through organic listings anyway and competing against themselves.
The hidden costs of not running branded search ads
Pausing branded campaigns can lead to severe consequences. A real example shows this clearly: one company lost $228,000 in revenue just 30 days after turning off their brand ads. Organic listings recovered only 12% of the lost revenue, though the company expected them to capture this traffic. Direct traffic dropped by 11% too.
Results don't bounce back right away when branded campaigns restart. Case studies show it takes 6-8 months to reach previous performance levels after pausing branded search ads. Competitors are quick to fill the empty space, which makes coming back harder and more expensive.
Incrementality: What would happen without branded search?
Incrementality lies at the heart of branded search value. It helps learn about what portion of branded search traffic and conversions would happen without paid campaigns. Ground testing reveals some surprising facts that contradict traditional metrics:
Non-brand search campaigns affect results more than first thought
Brand search incrementality shows less impressive results than surface-level performance metrics suggest
Brand strength, competitive landscape, and organic ranking dramatically change the true incremental value
Smart marketers run experiments to measure actual incremental value rather than making sweeping decisions about branded search campaigns. Companies can calculate the true business effect through controlled tests that pause branded campaigns for specific user segments. This data helps them optimize their budget allocation.
Measuring ROI of Branded Paid Search
"The most classic and rigorous approach to measuring ROI is to test the effectiveness of a search campaign in driving classic branding measures like awareness, purchase intent, and likelihood to recommend."
— Gian Fulgoni, Co-Founder and Chairman Emeritus of comScore
Getting accurate ROI measurements for branded search is trickier than regular campaign analysis. The biggest problem is telling the difference between what's related and what actually causes your campaign results.
Setting up proper attribution for branded search
Last-click attribution models usually make branded search look better than it is since these searches happen at the end of the buying path. You should think about using multi-touch attribution that gives credit to different touchpoints in the conversion path. But stricter privacy rules mean marketers need new ways that don't track users throughout their entire buying process. Marketing Mix Modeling (MMM) gives you a privacy-first fix by looking at combined data instead of individual user paths.
Key metrics beyond clicks and conversions
Your branded search campaigns need more than basic metrics:
Incremental Return on Ad Spend (iROAS): Shows real profitability by dividing extra revenue by campaign spend. Branded keywords usually get higher conversion rates and lower cost-per-click, but that doesn't always mean extra value.
Brand awareness indicators: Look at organic, direct, and referral traffic with branded search volume to see your brand's overall health
Search cannibalization: See how paid campaigns affect your organic traffic
Calculating true incrementality through testing
Incrementality testing has become the best way to understand your ads' real effect. This method needs you to:
Make treatment and control groups where one group sees branded ads and the other doesn't
Check performance differences between groups to calculate the actual lift
Figure out if conversions would happen whatever the ad exposure
Make sure your control group matches and is statistically similar to your treatment group for accurate results. You can test by geography or alternate days to keep overall campaign performance steady during your experiments. The heart of incrementality answers a vital question: "How much branded search traffic and conversions would happen whatever paid campaigns do?". This knowledge helps you spend your budget wisely and avoid wasting money on conversions that would happen anyway.
When Branded Google Ads Actually Pay Off
Branded search campaigns often spark plenty of debate among marketing professionals, but they can indeed deliver real returns in specific situations when executed effectively. Smart marketers have learned through experience that these campaigns work best in certain business contexts, rather than being a one-size-fits-all solution that applies universally across all industries.
High-competition industries with aggressive competitors
The marketplace gets fierce when rivals bid on each other's brand terms through "conquesting" - a practice Google allows as long as competitors don't use the brand name in their ads. Let's take a closer look at this example: Infiniti ads might show up at the time someone searches for "Lexus RX," which can lead potential high-value customers away from Lexus. Companies that skip defensive branded search campaigns risk losing potential customers to competitors who take their spot in search results.
This competition hits especially hard in wealth management, real estate, legal services, and automotive industries. These sectors see great results from branded search protection because their target customers are usually closer to making a purchase decision.
New brands building market presence
Young brands need branded search to serve two key purposes. It strengthens brand recognition from other marketing efforts and captures ready-to-buy traffic from people who now recognize the brand name. A 20-year old brand with a large customer base can drive many conversions through branded search because people already know them. Smaller brands and startups can't rely on branded search alone - they need non-branded campaigns too since not enough people search for them specifically.
During major marketing campaigns and product launches
Product launches create perfect moments to leverage branded search. These campaigns help potential customers find accurate, current information right after new products or services hit the market. The Rhode lip product launch showed this perfectly - it sold out instantly after strategic placement at high-profile events. Sales events and seasonal promotions work the same way. Branded search campaigns direct targeted traffic to specific offers and maximize results during peak times. They become crucial support for other marketing efforts by capturing interest generated through broader awareness activities.
Optimizing Your Branded Search Strategy
Strategic planning plays a vital role in optimizing branded search campaigns beyond basic keyword targeting. Your branded search investments need several crucial refinements to the campaign structure to maximize returns.
Preventing self-competition between campaigns
Multiple campaigns targeting similar keywords create self-competition in the search auction. This internal rivalry drains your budget and leaves potential customers confused. Your traffic needs distinct strategies for generic and branded keywords. Blacklisting branded terms from other campaigns will stop them from competing for the same audience. Product pages should target product-specific keywords while blog posts handle informational queries for e-commerce sites.
Using negative keywords effectively
Negative keywords protect your ads from showing up in irrelevant searches. These keywords boost ad relevance and improve quality scores. Search term reports help identify known irrelevant keywords. You can create negative keyword lists that work at the account, campaign, or ad group level based on their scope. Remember - adding your brand name as a negative keyword at the account level might eliminate potential conversions.
Budget allocation between branded and non-branded terms
Non-branded terms should get the larger share of your budget. Industry standards suggest putting 10-20% toward branded keywords and 80-90% toward non-branded ones. This strategy protects your brand terms while avoiding overspending on clicks that might happen organically anyway.
Ad copy optimization for maximum CTR
Your ad copy should naturally include relevant keywords in headlines and descriptions to boost click-through rates. Headlines of different lengths will strike a chord with various customer segments. Specific calls to action that highlight user benefits work better than generic language. Campaign-level asset reports reveal which elements connect best with your audience. Automatically created assets can generate custom headlines based on your ad's context.
Conclusion
Branded search campaigns play a crucial role in digital marketing strategy. Their success largely depends on market conditions and the competitive landscape. Our research found that some companies lost significant revenue after stopping these campaigns. Others saw little effect on their bottom line. These mixed results highlight why marketers need informed decisions.
Today's marketers rely on incrementality testing instead of basic metrics. These tests show the actual value of branded search campaigns. This becomes especially important during product launches or when competitors bid aggressively. Companies in highly competitive industries benefit the most from investing in branded search. New market entrants also see strong returns from these investments.
The path to success requires careful optimization. Marketers should allocate budgets wisely between branded and non-branded terms. They need to use negative keywords strategically and structure campaigns thoughtfully to avoid wasting money. Regular testing ensures marketing spend generates real returns rather than paying for traffic that would come naturally. Branded search campaigns work best when they're part of a detailed digital strategy. They support other marketing efforts and protect brand terms from competitors. Smart marketers should review their market position and test extensively. They can then adjust their approach based on real results.
