Many digital agencies employ a tactic that can make their Google Ads performance look significantly better than it actually is. This tactic revolves around bidding on your brand terms. Now, at first glance, this may seem like a positive thing—after all, why wouldn’t you want your brand name to appear when people are searching for it? But here’s the catch: it’s often used by agencies to artificially boost results and convince you that they’re doing a great job, even when the reality may be quite different.
Let’s break it down. Brand bidding refers to the practice of placing ads that target specific searches related to your brand name. For example, if someone types your company’s name into a search engine, the agency ensures that your paid ad appears at the top of the results page. This might seem harmless, but what’s happening here is that agencies are capitalizing on traffic you would have likely gotten organically anyway. When people search for your brand, they’re already aware of your business. These individuals are either returning customers or prospects who are familiar with what you offer.
Understanding Brand Bidding in Digital Marketing
Digital marketing agencies often employ a tactic called brand bidding where they bid on keywords related to a client’s brand name. This practice, while seemingly beneficial, inflates campaign performance metrics by capitalizing on traffic that would have been acquired organically. Because of this, brand bidding can provide a false sense of success and obscure the true effectiveness of the campaign in reaching new customers. Agencies should separate brand traffic from generic traffic in reports to provide a clearer understanding of campaign performance and enable clients to make informed decisions about their marketing strategy.
Agencies know that by bidding on these terms, they’re almost guaranteed a high click-through rate (CTR) and a low cost per click (CPC). This is because the user’s intent is already strong—they know you and are probably going to click on your link regardless of whether it’s an ad or an organic search result. What the agency does, however, is combine the performance of these brand term campaigns with the rest of your campaign data to make it look like everything is performing well. But in reality, they’re giving you a false sense of success by including easy wins in the report.
The Real Impact of Brand Term Bidding on Campaign Performance
When an agency bids on your brand name, the metrics can look impressive. You’ll likely see a much higher click-through rate because users are already looking for you. The cost per click will be lower, as brand terms generally have less competition compared to generic search terms. And conversion rates? They can skyrocket because these users were already on the verge of making a purchase or engaging with your business.
But here’s where the issue lies: these numbers don’t reflect the true success of your campaign. When brand term traffic is included in performance reports, it artificially inflates the key metrics you care about, like CTR, CPC, and conversions. These results make it seem like your ads are performing much better than they actually are.
For example, if your agency doesn’t separate brand term traffic from other traffic, it’s very easy for them to present inflated performance metrics. You might be led to believe that the overall campaign is working wonders, but the truth is, these conversions were likely going to happen regardless of the ad. Bidding on brand terms essentially means you’re paying for traffic that you could have received through organic search anyway.
And while those high conversion numbers may look great in reports, they don’t tell you how well your ads are attracting new customers—those who don’t already know your brand. This is a critical distinction. Your ultimate goal should be to reach new audiences and generate interest among people who haven’t yet heard of your business. When brand term traffic is lumped in with other data, it clouds the reality of how your ads are performing for new customer acquisition.
Separating Brand Traffic from Generic Traffic
It’s essential to understand the difference between brand traffic and generic traffic. Brand traffic refers to users who are specifically searching for your business by name. These individuals already know who you are, they may have interacted with you before, and they are likely already considering making a purchase. On the other hand, generic traffic comes from users who are searching for products or services but may not know about your business yet. They are in the discovery phase, evaluating their options.
Brand traffic tends to convert at a higher rate simply because these users already have familiarity with your brand. This is why when agencies include brand traffic in their overall performance reports, it gives a skewed view of the campaign’s success. Sure, the numbers look great, but they don’t reflect how well your ads are performing in front of a cold audience—people who have never heard of you.
On the other hand, generic traffic is much harder to capture. These are users who may not even know you exist. They’re searching for a solution, not necessarily your business, and they need to be convinced that you’re the right option for them. This is where the real work happens. Getting these users to click on your ad, learn about your business, and eventually convert requires a well-thought-out ad strategy, compelling copy, and a relevant offer. It’s not as easy as bidding on your brand name, but it’s far more valuable in the long run.
When agencies mix brand and generic traffic in reports, it becomes impossible to see how well your campaigns are really performing in attracting new customers. This is why it’s so important to ask for separate reports that differentiate between the two. By doing this, you can get a more accurate view of your campaign’s performance and make informed decisions about where to allocate your ad spend moving forward.
How to Spot Brand Term Bidding in Your Reports
It’s not always easy to spot when an agency is using brand term bidding to make their results look better. But there are a few red flags to look out for. If you notice unusually high click-through rates, very low costs per click, and stellar conversion rates across the board, it’s worth digging a little deeper. Ask your agency if they are including brand traffic in these results.
One easy way to tell if brand term bidding is skewing your results is by comparing your organic search data with your paid search data. If you’re seeing similar conversion rates for brand name searches in both organic and paid, it’s a good sign that your paid results are being inflated by brand traffic.
You should also request that your agency separate brand term performance from other search term performance in your reports. This way, you’ll have a clearer view of how your campaigns are actually doing in attracting new customers. If the results drop significantly after brand traffic is removed, you’ll know that the agency was relying on brand term bidding to inflate their metrics.
In addition to separating brand and generic traffic in the reports, make sure your agency is transparent about the goals of the campaign. Are they focusing on reaching new audiences or just driving more traffic to your site, regardless of where it comes from? Clear communication and transparency are key in ensuring that your ad spend is being used effectively.
Why You Should Be Cautious About Brand Bidding
Brand bidding can give you a false sense of security. When you see high click-through rates and conversion numbers, it’s easy to think that your campaigns are performing exceptionally well. But the reality is, anyone can bid on their brand name and get good results. There’s nothing particularly impressive about bidding on terms that users were already searching for.
Your ultimate goal should be to attract new customers—people who don’t already know your brand. These are the users who will help your business grow. Bidding on brand terms doesn’t help you reach these new audiences. Instead, it simply capitalizes on traffic that you would have received anyway.
It’s important to focus on campaigns that target non-brand terms. These campaigns might not yield the same impressive metrics at first, but over time, they will deliver better results in terms of acquiring new customers and growing your business. It’s a longer, more challenging process, but it’s far more rewarding.
If your agency is relying heavily on brand bidding, it’s worth questioning their approach. Are they truly working to grow your business, or are they taking the easy route to boost their metrics? A good agency should be focused on driving real value for your business by reaching new audiences and bringing in customers who wouldn’t have found you otherwise.
Making Sure Your Reports Tell the Whole Story
To ensure you’re getting the full picture of your campaign performance, work closely with your agency to make sure that brand and non-brand traffic are reported separately. This will give you a clearer understanding of where your conversions are coming from and whether your ads are reaching the right audiences.
It’s also important to set clear goals with your agency from the start. If your primary objective is to attract new customers, make sure that the agency is focused on campaigns that target non-brand terms. This might take more time and effort to optimize, but it will be worth it in the long run.
When reviewing performance reports, don’t just focus on the metrics that look impressive, like CTR or CPC. Dig deeper into the data and ask questions about where the traffic is coming from and how it’s performing in terms of reaching new customers. By taking a more critical approach to your reports, you’ll be better equipped to make informed decisions about your ad strategy and allocate your budget more effectively.