At its core, Marketing is about using tactics to get people through the door in order to purchase goods and services. That’s why we do all the research and planning and analyzing. We want our brand to be successful, and for that success to come as quickly and as easily as possible.
At the beginning, a bidding war may seem like just another way to squeeze out some profit via your competitor’s SERP page. For a while, it may work. You may get some good click through rates, and even make a few conversions. The long run, however, you may find it a bit less profitable. Over time, the searchers get wise and your CTR will drop, downsizing your quality score and driving up the CPC rate for both you and your competitors brands, meaning that as this goes on it will become increasingly expensive to maintain your PPC campaign.
Google isn’t dumb – they know that when a person puts in a branded search request, they are probably looking for that brand. Google as a company is always going to prioritize their searchers. That’s just how they choose to operate, and if they think that you are doing something on their system to try and trick or deceive searchers, they are going to do everything they can to diminish and dissuade you from continuing.
This starts with a lowering of your quality score, which is basically the way that Google’s system ranks your website or landing page against key search terms. If you aren’t aware, the quality score is a major factor in the google ads auction. If your quality score dips too low or becomes “below average” then you might find yourself shelling out major bucks just to stay on the front page. As you can imagine, this gets expensive very quickly, and at some point, you (or your finance department) will have to take a serious look at the numbers and decide: is this worth it? Personally, we don’t think so.