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Like most SEM questions, this one can only be answered on a client-by-client basis. When you are displaying in the top position in natural search, there is, in effect, a cannibalization that occurs when users click on the first listing they see, which is typically your sponsored ad. You are paying for a click that would, in theory, be achieved for free in the natural results if your ad wasn't there. But consider the benefits to having your ad in the top results:
- Because your ad is the one most relevant to your branded terms, you will have a high quality score, and pay very low CPCs to achieve top rankings. If your competitors are bidding on your branded terms, you should easily rank above them, paying a significantly lower CPC. And if you are not bidding on your banded terms, it is possible that your competitors' ads would be the first one a searcher sees, and with some enticing ads, it is possible that your competitors would steal traffic that should've/would've otherwise gone to your site.
- You cannot (easily) alter the text that is in your natural listing, nor can you choose what page of your site is linked to. With SEM ads, you can use custom ad text, highlighting specials or promotions, and traffic can be routed to special landing pages designed for converting/acquiring customers, as opposed to other pages of your site that may be more tailored to retention strategies.
- A user searching for your brand is typically one most likely to convert. Can you afford to have any of these prospects "poached" from you?
Some other factors that would be taken into consideration:
- Ambiguity of your brand name: Are there other organizations that have a similar brand name? Or is there a product with a similar name to your brand?
- Your objectives: Is your SEM program focused on driving sales, leads, brand recognition, or a mix of these?
- Your budgets
Overall, there are a number of factors that will help determine your SEM strategy for your branded terms, and with the recommendations from and consultation with your agency team, you will need to establish what is most effective and efficient for your business. |
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