Last Updated on February 28, 2025 by Damien Hurwitz
Branded terms. They seem straightforward, right? But when it comes to bidding on them, marketers are often divided. While some argue it’s an unnecessary expense, others find that it can lead to big wins in traffic and conversions. In fact, a study from Ahrefs found that bidding on branded terms can increase clicks by 18.3%. That’s not just a small boost—it’s a serious lift in visibility.
So why the debate? It’s largely about cannibalization and cost. Some marketers worry that paid ads for branded terms eat into their organic traffic. Others see it as a safeguard, preventing competitors from hijacking their brand’s search engine real estate. Let’s break it down so you can decide what’s right for your business.
What Are Branded Terms?
First things first. Branded terms are keywords that include your company’s name or unique product names. For example, if your brand is “Sunny Widgets,” then terms like “Sunny Widgets reviews” or “Buy Sunny Widgets” fall into this category. These keywords already signal high intent. Someone searching for them is likely familiar with your brand and closer to making a purchase decision.
Why Bidding on Branded Terms Matters
Here’s the thing: the SERP is crowded. If you’re not bidding on your branded terms, competitors might. This means their ads could appear above your organic listing, potentially stealing clicks from customers actively looking for you. By bidding on your own branded terms, you not only secure that top spot but also strengthen your presence on the page. You’re essentially making it harder for competitors to sneak in.
Key Benefits of Bidding on Branded Terms
- Protects Your Brand: Keeps competitors from overtaking your position on the SERP.
- Boosts Click-Through Rates (CTR): Combines organic and paid listings to capture more eyeballs.
- Improves Conversion Rates: Branded searchers are more likely to convert.
Still on the fence? Let’s dive deeper into the data.
The 18.3% Uplift: What It Means
The Ahrefs study shows that paid ads on branded terms increase clicks by 18.3% overall. This isn’t just about reclaiming clicks that might go to competitors. It’s about increasing your share of voice in search results. By dominating both paid and organic listings, you create a more robust presence that’s hard to ignore.
But this doesn’t mean you should jump in blindly. It’s crucial to monitor performance and run tests. If a branded campaign delivers incremental traffic and conversions, then it’s likely a smart investment.
How to Optimize Your Branded Campaigns
Ready to give it a try? Here’s how to make sure your branded campaigns perform:
1. Monitor Cannibalization
Use analytics tools to track whether paid ads are stealing clicks from organic listings. If they are, tweak your ad copy or bid strategy to target incremental clicks instead.
2. Test Different Ad Copy
Experiment with messaging that reinforces your brand’s value. Highlight offers, trust signals, or unique selling points.
3. Keep an Eye on Competitors
Watch for competitors bidding on your branded terms. Use tools like Google’s Auction Insights to see who’s appearing alongside your ads.
As Robert Davis, SEO at Sandhill Digital, explains, “Brands run into trouble when they start thinking about channels and tactics as silos, as either/or situations. A good cross-platform strategy functions in a way where all the tactics complement and amplify each other. Branded keywords and SEO both work well together to achieve the end goal.”
Want help crafting branded campaigns that drive results? Contact Sandhill Digital for a free strategy consultation today.
Conclusion
Bidding on branded terms isn’t just about reclaiming traffic—it’s about owning your brand’s presence in search results. With an 18.3% increase in clicks on the table, it’s worth testing and optimizing campaigns to see how they impact your business. Start small, measure everything, and adapt as needed. The results might surprise you!
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