what are the downfalls of brand bidding?

As a Google Ads marketer, one of the common strategies employed is bidding on brand terms, which involves running paid ads targeting your own brand name. While this practice most of the time is logical and beneficial, it's essential to consider the potential downsides that can arise from bidding on brand terms.

Let's explore some potential pitfalls and insights to help you make informed decisions about your brand bidding strategy.

Cannibalization of Organic Traffic

Bidding on brand terms can result in cannibalization of organic traffic. When you bid on your brand name, your paid ad may appear above or alongside your organic search listing. While this may seem advantageous at first, it often leads to users clicking on the paid ad instead of the organic listing. Consequently, you end up paying for clicks that you could have obtained organically, potentially inflating your advertising costs.

Increased Advertising Costs

Bidding on brand terms can significantly increase your advertising costs. As brand terms generally have a high Quality Score and a lower cost per click (CPC) compared to non-brand terms, it may initially seem cost-effective. However, when you consider the overall budget allocation, bidding on brand terms might divert funds from targeting new or non-branded keywords that could potentially bring in new customers. This can limit your reach and hinder growth opportunities.

False Sense of Success

Bidding on brand terms often leads to high click-through rates (CTRs) and conversion rates. However, it's important to recognize that these metrics can be misleading. Users who search for your brand name are likely already familiar with your business, and their intent to convert may be high regardless of whether you have a paid ad or not. Consequently, attributing success solely to brand bidding can inflate the perceived effectiveness of your campaigns while overshadowing the contributions of other marketing efforts.

Lack of Experimentation and Innovation

Relying heavily on brand bidding can stifle experimentation and innovation within your Google Ads campaigns. By allocating a significant portion of your budget to brand terms, you may miss out on opportunities to test new keywords, ad formats, or targeting options. Diversifying your advertising strategy allows you to explore untapped audiences, discover new conversion paths, and stay ahead of the competition. 

While bidding on brand terms in Google Ads typically offers more pros than cons, it's crucial to understand the potential downsides and carefully evaluate its impact on your overall advertising strategy. Consider the cannibalization of organic traffic, increased costs, unnecessary competition, false sense of success, and limited room for experimentation. By weighing these factors, you can make informed decisions that align with your business objectives and optimize your ad spend for sustainable growth. Remember, every advertising strategy should be tailored to your unique business needs and goals.