Brand bidding has become one of the fastest-growing areas of concern within the domain of affiliate marketing and online advertising. In this scenario, affiliates or third parties bid on a brand’s keywords to generate paid traffic. In other instances, this may lead to inappropriate behavior or acts that are less than ethical. Some brands have, often as a tactic to compete, been known to engage in brand bidding; unfortunately, where there is unauthorized brand bidding, there is usually always much greater damage to brand integrity, consumer trust, and costs associated with advertising. As such, companies need to be proactive and vigilant to avoid brand bidding abuse and maintain the endorsement of their brands online.
What is Brand Bidding in Affiliate Marketing?
In affiliate marketing, brand bidding refers specifically to the practice whereby affiliates place bids on the name of a brand or on keywords related to it in paid search adverts. This allows affiliates to reach the top of the search engine result pages, even above the brand’s own site, which refers more traffic to this practice, but is often again embroiled in controversies with certain affiliates engaging in illegal brand bidding.
Brand bidding allows affiliates to push for paid search traffic by hijacking those looking for a brand. The competitive marketing strategies, however, leave them at a thin line with the trademark infringement risks associated with possible confused customers and a violation of their intellectual rights with how affiliates go about using brand names in ad copies or misleading content.
Why is Brand Bidding a Concern for Brands?
Unauthorized brand bidding can have profound adverse effects on brands, such as:
Destruction of Brand Control
When unauthorized competitors or affiliates bid on a brand’s keywords, they become in control of how the brand is represented in search results. This takes away from brand authority and gives third parties control over messaging, usually in a manner that is not consistent with the brand’s identity or values.
Customer Redirection
Innocent consumers looking for a brand accidentally click on third-party ads that drive them to unauthorized resellers or even rival websites. The redirecting drives the sales away from the authentic channel and, at times, destroys customer relations.
Trademark Risks of Infringement
Certain affiliates use a brand’s name as copy in ads without authorization and thereby infringe upon intellectual properties. The illicit usage may culminate in a series of lawsuits and necessitate expensive enforcement techniques to safeguard the brand’s intellectual properties.
Increased Brand Ad Costs
To stay top of mind and outrank rogue bidders, brands must bid on their own terms. This redundant bidding boosts ad expenses unnecessarily, taking marketing dollars away from other critical efforts.
Harm to Customer Trust
If third-party ads mislead the brand, provide poor service, or do not live up to customer expectations, customers might blame these poor experiences on the brand itself. This can result in bad reviews, complaints, and a loss of customer trust.
Impact of Brand Bidding on Brands
Brand bidding can cause significant damage to brand protection efforts, resulting in long-term issues with brand credibility and authority.
Weakened Brand Authority
Unauthorized brand bidding weakens a brand’s dominance in search engine results, which makes it more difficult for customers to locate official brand channels. This undermines the brand’s authority and online presence, enabling third parties to influence customer perceptions.
Loss of First-Touch Engagement
Brand bidding captures the prospective customers at the earliest point in their process, precluding direct interaction with the brand’s authentic channels. The resulting first-touch loss of engagement impacts brand loyalty and conversion rates.
Compromised Customer Experience
Customers who buy unknowingly from unauthorized resellers or affiliates can end up with inferior products or services. If such experiences are poor, the customers are likely to lose confidence in the brand even if the brand itself is not at fault.
Negative Brand Sentiment
Dissatisfied customers who were looking for official brand services will post negative feedback, and this can harm the brand’s reputation online. Coping with such reputation risks will involve more effort and resources.
How to Monitor and Prevent Brand Bidding Fraud
Brand bidding fraud occurs when unauthorized advertisers exploit your brand keywords to divert traffic, mislead customers, and drive up advertising costs. To protect your brand, consider the following measures:
- Conduct Regular SERP Audits – Frequently search for your brand keywords across search engines to identify unauthorized ads that could be misleading users. Monitoring search engine results pages (SERPs) helps detect fraudulent activities early.
- Deploy Brand Protection Tools – Solutions like mFilterIt’s Affiliate Monitoring tool like EffCent provide real-time monitoring and detection of brand bidding fraud, ensuring your brand’s integrity is maintained.
- Leverage Negative Keywords – Adding your brand as a negative keyword in competitor campaigns can minimize exposure to unauthorized ads and prevent paid traffic from being misdirected.
By proactively addressing brand bidding fraud, businesses can safeguard their online presence, prevent revenue loss, and reinforce consumer trust in their brand.
Conclusion
Brand bidding in digital advertising and affiliate marketing presents both opportunities and challenges for businesses. While some affiliates use brand bidding ethically to drive traffic, unauthorized practices can harm brand reputation, increase ad costs, and erode customer trust. By leveraging advanced Affiliate monitoring tools like mFilterIt, brands can proactively detect and mitigate brand bidding abuse. A well-defined compliance strategy, combined with active monitoring and enforcement, is crucial for safeguarding digital presence and ensuring brand credibility.
Leave a Reply