Bigmouthmedia Responds To Google's International Brand Bidding
on: May 7, 2009, 9:05 am
reports that further changes unveiled by Google to its international
trademark policy could cost the world's major companies millions
in the short term as they struggle to protect their brands online.
not unexpected, Google's decision to allow anyone to bid for trademarked
keywords in a total of 194 countries including Saudi Arabia, South
Africa and Russia is widely predicted to lead to price rises in
the markets affected. However, evidence from the UK - where the
policy change was first rolled out in 2008 - indicates that while
bidding on some brand terms could increase by as much as 500%
in the short term, the impact is unlikely to be permanent.
dropping trademark protection didn't send costs skyrocketing to
the extent many feared in the UK, during the initial scramble
to bid on competitor brand terms we saw cost-per-click (CPC) prices
rise by an average of 400-500%. Those levels proved unsustainable
in the long term however, and we would expect any spike in keyword
prices to normalise within a matter of weeks, "said Lyndsay
Menzies, Chief Operations Officer at bigmouthmedia.
international offices have been working with such a system in
the US and UK for years and we know how to deal with it, but the
news is likely to precipitate changes in some international markets
as brands move budgets about within digital channels to maximise
the new territories into line with its North American and UK businesses,
Google will now allow open keyword bidding on all terms in 194
countries worldwide. This means it is now possible for more than
one advertiser to appear in the list of sponsored links that appears
after a user has typed in a search query using a trademarked term.
from the UK indicates that successful legal challenges to the
rule changes seem unlikely, although commentators will note that
Google has yet to relax restrictions in France, Italy or Germany,
where copyright laws are particularly robust.
bad news for major brands, the move is likely to be good news
for smaller competitors looking to close the gap. The announcement
is also likely to have a profound effect on all affiliate partners,
with the ability to bid on competitor keywords greatly increasing
the scope and range of their operations.
brands might be tempted to bid on competitor keywords in the newly
opened markets, Google's rules mean that while they are allowed
to bid on brand terms they can't use them in their advert copy,
something that frequently results in a low quality score and a
high average CPC. They are also likely to experience poor conversion
rates, because the fact of the matter is that if a customer searches
for a particular brand name, that's the one they're interesting
in buying," said Robin Richmond, bigmouthmedia's Head of
Pay Per Click (PPC).
revised rules will add new layers of complexity to the search
landscape though. Look at affiliate
marketing and PPC:
many brands restrict their affiliates from brand bidding but these
policies may now need to be reviewed if they wish to protect their
real estate from direct competitors."
Founded in 1997, bigmouthmedia is Europe's largest independent
digital marketing agency. With a team of over 200 staff across
12 offices in 10 countries, the company maximises exposure for
major brands online through a variety of fully integrated digital
marketing channels: PPC and search
engine optimisation, Online Media Planning, Affiliate Marketing,
Social Networking, Brand Monitoring, Online PR and Web Analytics.
Bigmouthmedia also provides up to date daily digital
marketing news to ensure clients are fully informed and aware
of all industry developments.
the digital marketing strategies of a third of the UK's most trusted
brands, bigmouthmedia services over 300 big-brand customers globally
including: Hilton, British Airways, Tesco, Air Berlin, Barclays,
Sky, British Telecom and Wall Street Institute.
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