Top Web Hosters have made significant investments over time in order to establish a recognizable brand. The dividends from online branding activity include relatively lower CPC and higher conversion rates. The fact is that many interested consumers who see television, print, and even banner ads will next turn to Google Search to learn more. Big brands can then capture that search interest via PPC and realize a high CTR advantage on their branded terms, and consequently lower CPC and better Ad Position. The dynamic is explained concisely in a recent post about Brand Advantage at MarketFlare -
A stark reality of the “big fish” is that they usually have an advantage of an already recognizable brand. They benefit from significant number searches on their brand that they buy for less than anyone and their high CTR boosts their QS. They usually have a bigger budget. In short, big brands are perched at the top of a PPC upward spiral related to high CTR and Ad Position and low CPC. Consequently, good ROAS comes easier for recognizable brands.
Buying competitor brand terms can be a good strategy, and it is now permitted by Google to use trademarked terms within your Ad Texts if you do it in a non-competitive way. Be ready to pay a premium for those terms unless you make your Ads and Landing Pages very relevant to keywords you are buying.
