How will Google's AdWords change impact SEM?

How will Google's AdWords change impact SEM?
SHARE
THIS



When Google announced changes to their Trademark Policy in March, they put brand marketers across Australia and New Zealand on alert.

Now that the changes are upon us, it’s a good time to look at what agencies and brands can expect and how we are reacting to the policy change.

We have seen coverage on the SEO implications of this change, but what does it mean for SEM and how can you limit drops in brand traffic for your company?

There are two scenarios that will come into play for brands;

1. The direct competitor bidding which is likely to create a stir between directly competing businesses,

2. The scenario where a company that on-sells a product or service will have the ability to bid on these specific keywords, for example David Jones bidding on Apple product terms;

Both these scenarios should deliver a benefit to the consumer from a greater ad variety with better informed decisions and cheaper purchases the likely outcome.

What to expect from the change

Experience from other markets, for instance the United Kingdom in 2008, has shown a Cost per Click spike on previously trademarked keywords over a period of one to two months after the changes take effect, due to an initially higher level of competition on the keywords.

Now that the changes have taken effect we expect an increase in the number of brands that have previously not been bidding on their own brand terms to begin doing so.

With potential competition in play we anticipate Cost Per Clicks (CPCs) to be slightly higher than before the changes but with Quality Scores and Click Through Rates defining the individual advertiser’s CPC, it is likely that trademark holders will see the costs for their trademarked terms return to previous levels fairly quickly as affiliates and competitors will experience significant CPCs and potentially negative return on investment.

How should you prepare your AdWords Campaigns?

We generally recommend our clients bid on their own brand term. Average CPCs are very low, sometimes as little as $0.05 for the trademark holder, and bidding on your own brand term enables you to take up more real estate on Google.com.au in the top spot through the utilisation of sitelinks, location and various other Google product extensions.

In addition to these two benefits, studies (see here and video) have indicated that even when both paid search and organic search positions from the same advertiser are high, paid search traffic is incremental.

Finally, due to the fact that we can optimise and immediately update brand messaging and landing pages on paid search results, click through rates and conversion rates are generally higher than for organic search.

We are recommending that clients who are already bidding increase brand campaign CPCs to ensure position one for their own brand ad with Trademark policy change newly implemented to ensure brand keyword Share of Voice stays at current levels (ideally 100%).

In addition, we have suggested raising brand keyword allocated budget threefold for the first month.

What now?

As with any change Google makes, the consumer is going to be the big winner through an improvement to the relevant information served on any Google search going forward, which means better informed decisions whether consumers are in the awareness, consideration or purchase phase.

Google’s changes will cause a stir among AdWords advertisers in the next two months among small, medium and large enterprises alike. However, we believe that activity and costs will normalise relatively quickly and that as a trademark owner it is likely that after a short-lived spike in CPCs for your trademarked terms, these will drop to acceptable levels very quickly.

If you are not bidding on your trademarked terms, we recommend that clients start a campaign for these keywords now that the changes have taken effect. Monitor this campaign as well as the Search Engine results pages for brand term keywords closely over the following months to avoid overall drops in traffic as an effect of competing advertisers cannibalising your organic traffic.

Andreas Andersen is a business director at Aegis-owned search marketing agency Columbus 

Please login with linkedin to comment

Latest News

Why The “No” Campaign Is Just One Long Slippery Slope
  • Opinion

Why The “No” Campaign Is Just One Long Slippery Slope

Not exactly your typical marketing/media piece, but here playwright Ron Elisha (pictured below) explains the damage done by the “No” campaign and the now infamous skywriting on a recent blue-sky Sydney Sunday… My daughter is crying. It’s not that she’s fallen over and barked her knee. Nor is it the trauma of immunization, or the […]

Opinion

by B&T Magazine

B&T Magazine
QMS Goes West With ‘The Leeder’
  • Advertising
  • Media

QMS Goes West With ‘The Leeder’

QMS Media continues to expand its digital portfolio across Western Australia, switching on an iconic billboard in the heart of Perth. Following the launch of two new digital billboards in the major WA regional centres of Bunbury and Kalgoorlie in recent months, ‘The Leeder’ further delivers on QMS’ digital expansion strategy out west. Positioned at […]

PR Firm Text100 Wins NetApp Account For APAC
  • Marketing

PR Firm Text100 Wins NetApp Account For APAC

Global marketing communications agency Text100 has announced it been appointed by data management company NetApp to drive its brand transformation effort across the Asia-Pacific (APAC) region. Following local competitive pitches conducted across the region, Text100 has been appointed as the APAC lead agency out of Singapore, and as the local agency of record in Australia, […]

MFA Awards 2017 Winners Revealed!
  • Advertising
  • Marketing
  • Media

MFA Awards 2017 Winners Revealed!

B&T once again donned the tux, applied the Brut, and primed the liver for last night's MFA Awards in Sydney.

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant
  • Media
  • Technology

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant

Digital publisher Concrete Playground has unveiled a new app that helps Millennials plan their night out using voice control – the first of its kind to become available in Australia. Concrete Playground’s Guide to Tonight now works with Google Assistant, making it available on a range of Google devices and helping people to decide what […]

Digital Agency Inlight Secures Two Key Client Wins
  • Marketing
  • Technology

Digital Agency Inlight Secures Two Key Client Wins

Independent agency Inlight has announced it has won the digital account for Benetas, a not-for-profit aged care provider in Victoria. Following a competitive pitch process, Inlight was chosen to handle Benetas’ new website design, build and ongoing optimisation. Richard Barker, marketing manager at Benetas, said: “We wanted an agency that could be our true digital […]

AMI Awards 2017 Winners Revealed!
  • Marketing

AMI Awards 2017 Winners Revealed!

With almost 30 awards handed out, B&T predicts plenty of numb bottoms at last night's AMI Awards in Melbourne.

Clems Sydney CEO Andy Pontin Quits
  • Advertising

Clems Sydney CEO Andy Pontin Quits

Sure, B&T flashed the news of Andy Pontin quitting this morning. White lies aside, he's actually still got six months.

by B&T Magazine

B&T Magazine
Adobe MAXes Most Creatives In A Room Record
  • Advertising
  • Media

Adobe MAXes Most Creatives In A Room Record

B&T's journo is reporting live from the annual Adobe Summit in Vegas. Although, "reporting" is somewhat of a stretch.

Opinion

by David Hovenden

David Hovenden
Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses
  • Marketing

Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses

The Australian College of Marketing is collaborating with the Digital Women’s Network to bring new short courses aimed to provide the latest skills across all aspects of the Digital landscape, kicking off in Melbourne and Sydney in 2018. Course content will focus around various topics related to the digital marketing landscape. All courses will run […]

Man working at office desk, looking at computer and scratching head
  • Technology

Where Are Digital & Tech Skills & Salaries Headed?

The rapid pace of technological change in the digital sector is seeing demand for those with the right skill sets outstrip availability, both locally and globally. The individuals who have kept their skills up to date are being well-rewarded financially. Now, Digital + Technology Collective’s expanded annual Skills and Salary Survey will put some numbers and context […]

Disney & ESPN Unify Sales & Partnerships Teams
  • Advertising
  • Marketing
  • Media

Disney & ESPN Unify Sales & Partnerships Teams

Disney and ESPN have formed an even closer bond, announcing a new alignment of the two properties through their media sales and partnerships teams. Instead of entering through three doors, Disney ESPN Media Sales & Partnerships will give media buyers and marketers a refined, singular point of entry for Disney, ESPN Digital and Maker. Nik […]

by B&T Magazine

B&T Magazine
Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]