To bid on brand or not to bid on brand. Hereโs my take: Weโve all seen Google agencies with extremely promising results: 10X or even 20X ROAS. I literally saw a Dutch agency last week promoting their 32X ROAS through an Instagram Ad - calling the prospects to action โif theyโd like those results as wellโ. ๐คฎ Some brand owners might be very eager to work with those agencies. But hereโs whatโs wrong with that: Google Ads already targets the bottom of funnel traffic. Even with extreme high intent, a 20X ROAS is NOT realistic, definitely not at scale. So, what these brands are doing is unnecessary spending on your brand name. Unnecessary. The people that the branded campaigns convert, were already looking for your brand. You should spend as little as possible on your brand because with a little bit of SEO, the people will find you. So look, if you use a tool like iSearchFrom, and see that your competitors are bidding on your brand (in either shopping on search), you should probably counter that with a little branded campaign (try like 10% of your budget). And ALWAYS exclude your brand name from PMAX. And ALWAYS A/B test your strategy while looking at profits. The thing is, your Google Ads results wonโt be inflated this way, and youโll probably hit a more realistic ROAS like 4X or 5X. Butโฆ! If youโd look at your MER or at your bottom line profit, these metrics will be way better, and you will ACTUALLY enable your brand to grow. โ Soโฆ If you want to have inflated Google Ads results and leak profits over a longer period of time, go for that agency promising the 10-15X on your campaigns. If you want to actually grow your business, go for an agency looking at more than ROAS, honestly trying to help you grow your brand. โ Now, Iโm curious: whatโs your take on this?
I completely agree with your take on bidding on brand. It's important to focus on profitable metrics like MER and bottom line profit rather than inflated ROAS. A little branded campaign can be useful, but always exclude your brand name from PMAX and A/B test your strategy. Keep up the great advice!
Yeah great call man. Definitely agree that brand should be by far the most profitable and completely separate from other non-brand components! ๐
A/B testing branded campaigns is key. What works for one business might not work for another
Agree. Focusing on overall profit & brand growth makes way more sense
A agency would surely take you to greater heights in certain cases Floris van Vleuten Exactly, Google ads do target the bottom of funnel traffic
Love this breakdown
I agree!
Top Ecommerce Email Marketer & Agency Owner | Weโve sent over 1 billion emails for our clients resulting in $200+ million in email attributable revenue.
1moAppreciate it. I love seeing a focus on long-term brand growth over short-term gains