The recently announced change to Google’s policy for trademarked terms in AdWords is causing controversy among brand advertisers, reports Marketing Magazine.
From the 14th of September, Google’s policy for its flagship search engine marketing platform for trademark terms in the UK, Ireland and Canada will be brought into line with the policy applied to advertisers in the US. This will allow retailers, resellers and vendors of replacement parts as well as information site hosts to use trademarked terms in the text of their PPC ads without the express permission of the owner.
Whilst Google says that the policy change improves user experience and says the use of trademark terms typically boosts conversion rate for retailers of commercial products, Britain’s “biggest brand owners” have attacked the idea.
Speaking to Marketing Magazine, the head of European communications at Honda, Ian Armstrong, says that the revised policy could deter investment from brand advertisers in search engine marketing. “This is not a good move and could tarnish its relationship with brands,” he says, though he admits that “it would be a brave move for anyone to turn away from Google altogether.”
His opinion is shared by Tom Hings, the former brand marketing director of Royal Mail. He says that Google is ‘profiteering’ from the millions of pounds companies have spent on building their brand identity via SEO and paid search advertising.
The criticism likely stems from the increased prices for PPC ads that brand owners will face on AdWords once more people are allowed to use their terms. According to a search engine marketing consultant in the Marketing Magazine article, the changes could drive bidding levels “by more than 50%” whilst a rise of just 10% would cost brands “tens of thousands in lost revenue.”
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