Admit it. You know you’ve thought about it. Yet you hesitate. Chances are, you’re probably conflicted, wondering if it’s morally right, or if you really want to “go there” – even if it is legal. Well, you’re not alone. Many search marketers grapple with this decision at one time or another. The issue? Bidding on competitors’ branded terms.

Your hesitancy is both understandable and prudent as this is an important decision. However, it has far less to do with morals than pure business principals. In fact, it should be based on the same standards you measure everything else with: value, risk, and timing. Gaining an understanding of each may help you decide if bidding on your competitors’ branded terms makes sense for you.

The value

For the most part, bidding on competitors’ branded terms offers one key advantage: higher conversions. How so? When users search on branded terms, they are typically at or near the end of their purchase decision process. Consequently, these branded terms tend to have a significantly higher conversion rate than non-branded terms.

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