AdWords Trademark Policy Update

Overview

Google recently announced that starting June 15^th, advertisers will be allowed to use trademark terms in their ads even if they do not own that trademark nor are an approved reseller/partner.  Currently, advertisers have complete control over who can place their brand name in the headline and/or description line in order to ensure competitors are not using such brand name as leverage.  Advertisers who own their brand name manually grant companies permission to use these terms in the ad copy on a case by case basis.  Google will be rolling out an automated tool to properly scan landing pages and allow use of brand terms in ad copy based off of the following advertiser criteria:

1.       Resellers or partners:  Tool will scan the landing pages to ensure branded product is sold.  An example is Best Buy selling Belkin routers on the landing page.  The tool would allow ‘Belkin’ to be displayed in the ad copy

2.       Informational sites: Sites that compare and or review products, but do not sell such products.  For example, CNET as an advertiser may have a page dedicated to comparing routers.  They will be able to run ads saying “Looking for a new router? Compare Belkin to D-Link and….”

This change has no affect on keywords: anyone can currently bid on any term in AdWords.  Google’s Quality Score will bring the most relevant ads and landing pages to the top rank.

Why?

It appears that Google is making the marketplace more accessible to all advertisers by automating this feature.  However, the technology rolled out will ensure that competitors will not be allowed to fall under the 2 categories above.  Google’s goal (and that of the search landscape) is to connect the audience with qualified ads and, in effect, connect the user to the right page as quickly as possible.

Impact

The trademark update will obviously give companies less control over who can use their brand terms in ad copy.  However, the direct effect of this change will depend on the brand.

Clients with Resellers/Partners

Companies with a large manufacturing base (i.e. several resellers) may see an increase in cost per clicks as the paid search marketplace increases on both brand and general terms.

Clients’ Products on Informational Sites

On the other hand, informational sites, in time, could be quite beneficial to all advertisers.  Although ad dollars are moving towards the lead gen aspect of search, there are still a large percentage of users researching before they buy.  These sites may take away clicks initially, but these users are becoming more educated about your product and, if it is a good fit, will be more likely to convert – and convert faster.  This means a potential increase in conversion rates and return on investment.

What to do?

Clients with Resellers/Partners

Keep track of your clients’ resellers–which keywords they are bidding on with your brand in copy.  There won’t be much you can do to change their copy, but it is best to avoid click cannibalization and increasing CPCs.  In some situations, you may be able to work with your resellers or partners to keep this from happening.

Clients’ Products on Informational Sites

See which informational sites are displaying your client’s brand in their ad copy.  This could be an upsell opportunity for some premiere display placement, especially if the information is positive for your client.

So mark June 15^th in your calendar as Duplicity Day.  You may start to see your brand more than expected!

~Daniel Romotsky