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Flight log / Transmission 036

Brand bidding: should you pay for your own name?

Paying Google for people who already typed your name feels like tipping the doorman at your own house. Then again, in Google's 2012 analysis of 390 ad pause studies, half the ad clicks that appeared next to a number 1 organic result were still incremental.

By Ronny Cheng Updated 9 min read
warp zone: the 30-second version

> Bid on your brand when competitors are bidding on it or your site isn't the first organic result: that's where paid brand clicks are most likely to be incremental, and brand CPCs are usually low. If nobody conquests you and you rank first, run a geo holdout test before paying for every brand click.

Brand bidding is one of the oldest arguments in paid search. One side says branded search campaigns are free money: cheap clicks, high conversion rates, beautiful ROAS. The other side says most of those people would have clicked your organic listing anyway, so you're paying for traffic you already own.

Both sides are right in some accounts. This post covers what the public research actually says, how competitor bidding changes the math, the brand controls Google gives you in Search and Performance Max, and a test that settles the question for your own account.

// 01 · the briefing

What is brand bidding?

Brand bidding means paying for ads on searches that contain your company or product name. "Acme," "Acme pricing," "Acme login" and "Acme vs. Globex" are all branded queries. Most advertisers isolate them in a dedicated branded search campaign so they can set separate budgets, bids and reporting.

The flip side is conquesting: bidding on a competitor's brand name. It's legal on Google and common in B2B. Google's trademark policy lists trademarks used as keywords among the things it will not restrict. What it can restrict, after a valid complaint from the trademark owner, is use of the trademark in the ad text itself.

That asymmetry is the heart of the debate. You can't stop competitors from appearing on your name. You can only decide whether you show up too.

// 02 · fuel costs

Why are branded clicks so cheap?

Brand terms are usually the cheapest clicks in an account, and the reason is mechanical. Google says Ad Rank is calculated from many factors, including your bid and the quality of your ads and landing page. On your own name, your ad and page are about as relevant as an ad can be, and searchers click it at high rates. Competitors bidding on the same term start with a relevance handicap, so they pay more to show below you.

In a hypothetical B2B software account, the spread might look like this.

Average CPC by campaign typeHypothetical B2B software account, US, last 90 days
Average cost per click$0$5$10$15Own brand$1.85Non-brand category$11.40Problem-aware terms$7.90Competitor brands$14.60

Illustrative data, not from a real account.

View data
Average CPC
Own brand$1.85
Non-brand category$11.40
Problem-aware terms$7.90
Competitor brands$14.60

Cheap isn't the same as valuable. A $1.85 click that would have come through organic for $0 is still a $1.85 cost with no return. The CPC tells you the price. Only incrementality tells you whether you're buying anything.

kipp>

Brand campaigns always report the best ROAS in the account. That's not proof they work. It's proof the people searching your name already like you.

// 03 · signal vs. noise

Are brand search ads actually incremental?

Three bodies of public research frame the debate. None of them is recent, and none is B2B, so read them as directional.

Google's pause studies

In 2011, Google statisticians reported from their "Search Ads Pause" studies that, on average, 89% of the clicks from search ads were incremental, meaning they were not replaced by organic clicks when ads were paused. That figure covers search ads in general, not brand terms.

The 2012 follow-up is the one that matters for brand bidding. Across 390 pause studies, Google split the results by where the advertiser ranked organically for the same query. When the advertiser held the top organic result, which is the normal situation on your own brand name, 50% of ad clicks were still incremental.

Incremental ad clicks by the advertiser's organic rankShare of paid clicks not replaced by organic clicks when ads were paused, 390 studies
% of ad clicks0%25%50%75%100%Organic rank 150%Organic rank 2 to 482%Organic rank 5 or lower96%

Source: Google Research, Impact of organic ranking on ad click incrementality, 2012

View data
Incremental ad clicks
Organic rank 150%
Organic rank 2 to 482%
Organic rank 5 or lower96%

Keep in mind who ran those studies, and that they measure clicks, not revenue or pipeline. Still, it's a large sample, and it says the obvious thing: the stronger your organic position, the less a paid ad adds.

The eBay experiment

The counterpoint is a large field experiment at eBay by Tom Blake, Chris Nosko and Steven Tadelis, released as an NBER working paper in 2014. They turned off brand keyword ads in a controlled test and concluded that "brand-keyword ads have no measurable short-term benefits." A later summary in VoxEU put it at 99.5% substitution: almost all the brand traffic simply arrived through organic links instead.

The Edmunds experiment

eBay is an extreme case: a household name that dominated its own results. A geo experiment on Edmunds.com, summarized in VoxEU in 2018 by Lorenzo Coviello, Uri Gneezy and Lorenz Goette, found a very different result. When branded ads were shut off in test markets, only about half of the branded search traffic still reached the site through organic links. The authors suggest much of the rest likely went to competitors who were bidding on the Edmunds name.

Put the three together and a pattern emerges. Brand ads add little when you own your results page outright. They add a lot when someone else is standing on it.

// 04 · versus

What happens when competitors bid on your name?

This is where most B2B brand bidding decisions are actually made. If a competitor's ad sits above your organic listing on your own name, pausing your brand ad hands them the first thing your prospect sees. Leave the maze empty and the ghosts move in.

You can see this directly by running auction insights on your brand campaign. Any domain with meaningful impression share on your name is conquesting you. In this illustrative example, a competitor ramps up on a brand term over a quarter.

Competitor impression share on your brand termsWeekly, hypothetical B2B brand campaign
  • Competitor A
  • Competitor B
Impression share on brand terms0%20%40%60%W1W3W5W7W9W11W12A starts conquesting42%13%

Illustrative data, not from a real account.

View data
Competitor ACompetitor B
W18%12%
W29%11%
W38%12%
W410%13%
W522%12%
W631%14%
W736%13%
W838%12%
W939%13%
W1041%14%
W1140%13%
W1242%13%

When a competitor goes from showing on 1 in 10 of your brand searches to 4 in 10, the case for keeping your own brand ad live gets much stronger. When nobody else shows up, the case for testing a pause gets stronger. Watch this monthly, because conquesting tends to start quietly.

kipp>

Your brand campaign is a security system, not a growth channel. Judge it by what it prevents, and check the cameras before you cancel the contract.

// 05 · telemetry

How do you test whether your brand ads are incremental?

The research gives you a prior. A holdout test gives you your own answer. The cleanest version for most advertisers is a geo split, the same design the Edmunds study used:

  1. Pick matched regions. Choose test and control regions with similar historical brand search volume and conversion rates. Several smaller regions beat one big one.
  2. Pause brand ads in the test regions only. Keep everything else, including non-brand campaigns, unchanged.
  3. Measure total brand traffic, not paid traffic. Track paid brand clicks, organic brand clicks and the outcomes you care about, such as qualified leads or pipeline, in both groups.
  4. Run long enough. Plan for at least 4 to 6 weeks, longer if your sales cycle is long. B2B leads are lumpy and a 2-week test will mostly measure noise.
  5. Compare the gap, not the totals. The incremental effect is the difference between test and control, relative to their pre-test baseline.

Here's what a hypothetical test region might look like week by week.

Brand clicks in a test region before and after pausing brand adsWeekly, hypothetical geo holdout test
  • Total brand clicks
  • Organic brand clicks
  • Paid brand clicks
Clicks per week05001K1.5KW1W3W5W7W9W10brand ads paused

Illustrative data, not from a real account.

View data
Total brand clicksOrganic brand clicksPaid brand clicks
W11K600400
W21K605405
W3990595395
W41K600405
W58808800
W68708700
W78758750
W88658650
W98708700
W108688680

In this illustrative case, organic picks up about 70% of the clicks the ads used to get, and total brand clicks fall by roughly 13%. Whether that's worth paying for depends on what those lost clicks were worth and what the brand campaign cost. If a competitor was conquesting the term, expect a bigger gap. For test design and reading results without fooling yourself, see our guide to incrementality testing.

// 06 · pre-flight checklist

How should you set up a branded search campaign?

If the answer is "keep bidding," set it up so brand traffic doesn't leak into the rest of the account and the rest of the account doesn't take credit for it.

Your situationBid on brand?Why
Competitors appear on your brand termsYesPausing hands them the top of your own results page
You're not the first organic result for your nameYesGoogle's data shows paid clicks are far more incremental below rank 1
New product or name with little organic presenceYesOrganic hasn't caught up yet
You rank first and nobody else bidsTest firstThis is the eBay scenario, where substitution was near total
Brand plus modifier queries (pricing, reviews, vs.)Usually yesThese are comparison moments where competitors and review sites compete for the click

The controls Google gives you, as of October 2026:

Last, the landing page. Branded traffic is high intent but not one intent. "Acme pricing," "Acme login" and "Acme vs. Globex" want three different pages, and the homepage is rarely the best answer to any of them. Send each brand plus modifier group to the page that answers it, using the same discipline as any message match audit.

kipp>

Someone searching "your name vs. competitor" is mid-decision. Sending them to a generic homepage is the most expensive way to say "we didn't hear the question."

// 07 · where this breaks

What we don't know yet

Brand bidding is one line item in a wider plan. For how it fits next to category, competitor and problem-aware terms, see the B2B PPC playbook.

kipp> waitlist --join

Something's warming up on the launch pad.

We're building something for people who read posts like this. Early access opens in waves.

Early access, by invitation.

// 08 · comms

FAQ

What is brand bidding?

Brand bidding means running paid search ads on searches for your own company or product names, usually in a dedicated branded search campaign. Bidding on a competitor's brand name is usually called conquesting.

Should you bid on your own brand name?

Usually yes when competitors bid on your name or your site is not the first organic result, because those are the cases where research shows paid brand clicks are most likely to be incremental. If neither is true, run a holdout test before paying for every brand click.

Are brand search ads incremental?

Partly, and it varies. Google's 2012 analysis of 390 pause studies found 50% of ad clicks were incremental when the advertiser also had the top organic result. eBay's experiment found no measurable short-term benefit from brand keyword ads.

Can competitors bid on my brand name in Google Ads?

Yes. Google's trademark policy does not restrict trademarks used as keywords. It can restrict trademark use in ad text after a valid complaint from the trademark owner.

How do I stop Performance Max from serving on my brand searches?

Apply a brand exclusion list that includes your own brand to the Performance Max campaign. Google says brand exclusions in Performance Max apply to Search, Shopping and YouTube search inventory.

What is the difference between brand inclusions and brand exclusions?

Brand inclusions limit a Search campaign to queries about the brands you select. Brand exclusions stop a Search or Performance Max campaign from serving on queries about the brands you list.

Ronny Cheng has spent 15+ years in performance marketing and led growth on 9+ startup exits across 75+ companies. He writes the Flight log for people who read search term reports for fun.

Receipts

  1. Google Research: Impact of organic ranking on ad click incrementality (2012)
  2. NBER: Consumer heterogeneity and paid search effectiveness, a large scale field experiment (Blake, Nosko, Tadelis, 2014)
  3. CEPR VoxEU: An experiment to estimate the effectiveness of branded search ads (2018)
  4. Google Advertising Policies Help: Trademarks
  5. Google Ads Help: Apply brand exclusions to Performance Max or Search campaigns
  6. Google Ads Help: How Performance Max interacts with other campaigns in your account
  7. Google Ads Help: Maximize performance on Search with updates to query matching