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Should we disallow retailers to advertise on our brand name?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi there,

 

We are considering disallowing our retailers to advertise on our brand name, because we prefer customers to order directly from our (official) brand webshop. Due to the many retailers advertising on our brand name, our own click prices increased extremely over the last couple months, which led to thousands of dollars budget to be "wasted" on being visible with our own brand name. Or are there other ways to tackle this issue?

 

Thanks in advance!

2 Expert replyverified_user

Should we disallow retailers to advertise on our brand name?

Rising Star
# 2
Rising Star

That's a great question!

 

You have to balance two things:

 

1. The advantage of having customers come directly to you (higher profit margins, direct access to them, more control over the experience)

 

2. The benefit of retailers using their credibility to advertise your product (customers may be more likely to convert on other sites if they already have a relationship with those retailers).

 

I recommend thinking in those terms when you make this decision. There are pros and cons to each approach, so you need to figure out what makes the most sense in your particular situation.

 

Best,

 

John

Should we disallow retailers to advertise on our brand name?

Top Contributor
# 3
Top Contributor

Let me ask you a question back.... how is money spent putting your ad in front of people searching for your brand name "wasting" money... you clearly understand this because the "" are yours ;-)

 

Think about what might happen if you prevented retailers from advertising your brand... you would force them to make a choice between three alternatives - advertise without any brand name, advertise with a competitor's brand name or stop advertising altogether... which of these would be good for your business? (Spoiler : none of them)

 

I've looked at the question of advertising brand terms many times and the more I consider the options, the more convinced I am that this is one of the very best ways for a business to spend it's marketing budget. And this filters down through your retailer network too in my opinion.

Should we disallow retailers to advertise on our brand name?

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

Hi John,

 

Thanks for your reply. I totally agree with the fact that we have to compare both options based on margins and other factors. In case we want to have total control over the whole customer experience and customer data, the first option would be a logic step. Although we will have to calculate both options completely to make the best choice. 

Should we disallow retailers to advertise on our brand name?

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Thanks for your reply! Is there anything we can do to at least make sure we are always on position one with our ad, regardless of retailers coming second and third with their ads? Instead of increasing CPC every month where only Google benefits?

Should we disallow retailers to advertise on our brand name?

Top Contributor
# 6
Top Contributor

There are two main factors that affect ad position - the bid and the keyword Quality Score. 

 

As the brand owner you should be able to get a 10/10 on QS - if you are not, then this is the first place you need to work... make sure that your landing page is brand-centric and that the ad also carries the brand name a couple of times.

 

Once you have the 10/10 score, then the rest is down to the bid. You can test and adjust to ensure that you maintain the top position - and remember, that you should be able to generate a much better return on your ad spend than any of your retailers so in truth, if paying what the top slots work for them it should work all the more for you. It's just a case of accepting that you have to pay good money to be top of the ads for your own brand name - which feels like it should be your rightful place.

 

And you are talking about retailers selling your products.... you'd be even more upset if these were competitors bidding on your brand to sell their products!

 

Finally, and I don't have a dog in this fight, so my comments are to be taken at face value - why shouldn't Google benefit? After all they are the place your target customers are going when they want to find you... surely you would pay someone who was finding a bunch of people who were in the market for your product and pushing them in your direction - you'd be silly not to.

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Should we disallow retailers to advertise on our brand name?

Badged Google Partner
# 7
Badged Google Partner

I agree that this has to start with the business analysis, and whether B2B or B2C is the better option for the company moving forward. Simply dis-allowing retailers to use your brand terms for any type of advertising is not a viable option. It's going to cause you problems with your retailers, and if they make you your money, you don't want to lose their business.

 

There's more than one way to develop a brand protection/awareness strategy for your advertising. Competing against your own retailers is the big issue, and something you have to address within the company first. If you go full retail, it's still in your best interests to increase brand awareness, and help your retailers sell more of your product.

Tom

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