Idiots Guide To Brand Bidding, How To Bid Like A BBG Pro

Due to the Google AdWords Trademark changes coming into force on May the 5th 2008 and the way some UK affiliate networks are sweeping merchants towards Brand Bidding Groups I thought now would be an ideal time to help train anyone up to current Brand Bidding Group Pro standard so they are in with just as much of a chance as the “professionals” are (if it were a level, non biased or financially weighted landscape we operated in) of getting to play on the brand groups likely to pop up in May.

Ok let’s begin the standard three step process of how to be like most of the current brand bidding group participants .. firstly create a landing page on your chosen site, ideally something like merchant-name-keyword.co.uk  or merchant-name.superdooperamazingdeals.co.uk  and add content that’s basically a direct clone of the merchant’s site, then for step two create an adgroup and make an advert with the merchants brand in the title, body and url text, step three entails just adding the merchant’s brand as a keyword with square brackets Brand Bidding Group Stoogesaround it like [merchant brand] .. that’s it well done, congratulations, you just attained Brand Bidding Group specialist status !

Now you should bid like this until you get a tug from someone (which may never happen if you are lucky) for not adding enough value, in which case do merchant’s brand with another keyword such as buy, apply, cheap, cheapest, so now you have something like [cheap merchant brand] etc.

Now bid like this for as long as possible, you’ll make a killing on most brands, some of them will cough it tens of thousands of pounds in nice juicy commissions per month with no clue that you are literally just taking cash off punters already heading in through the the door,  but if you are pulled about adding more value with a bit of a wider spread then you’ll have to resort to the dreaded phrase match, the curse of the BBG.

The phrase match is the last option in the BBG keyword matching arsenal (to be really successful in brand bidding you’ll virtually never use broad match), using phrase match means your ROI may suffer as you’ll actually be getting traffic that’s not as targeted as that nice juicy exact match you have been getting .. it’s possible that you may even have to spend ten minutes researching negative keywords to make sure you don’t show for irrelevant terms such as complaint, support, contact, email, vacancy, recruitment, return etc. So for your wider phrase match keyword spread you’ll have to bid on terms like “merchants brand” and “cheap merchants brand” etc.

If tugged again you may have to actually - god forbid - create a generic adgroup where you actually compete with other merchants and affiliates on the traffic for the merchant’s sector!  Very scary I know.. your ROI is going to take a hammering now you’re actually expected to add value to the merchant’s campaign you may even dip below 100% ROI here!

There you go, that about covers 90% of the work that’s being done out there on brand campaigns, some guys are trying hard and do add value but they make up a small minority as far too many don’t try hard and aren’t adding value and the networks seem complicit in this pervasive apathy and that’s actually bordering on exploitation in my view, merchants are being took for a ride in some instances.

Ok maybe the cynic in me shone through the above steps, I wish I was totally joking however I, as well as many other affiliates, see what’s happening on many brand campaigns, some of the brand bidders are literally having a laugh at the merchant’s expense. They are given brand bidding rights as they have “performed on brand campaigns in the past” or “have a proven history with brand campaigns” according to the networks who favor them, which is a bit like the argument for making a serial killer the hangman as he’s got experience, (sure he can do it but he won’t always do it how it should be done).

Performing on a brand campaign is child’s play! it often is as simple as [brand name] at £0.xxp per click and bank the profit, many of the brand bidders are taking advantage of their favoured status by doing this and very little else, I’ve seen many solely brand bidding doing zero generics and active like this on multiple campaigns, some of them are so mercenary and opportunistic that they even brand bid when they shouldn’t be on merchants which don’t allow brand bidding.

With most of the BBG’s affiliates owning one or more Ferrari’s, Porsche’s or Aston Martins etc. now just how much better can one affiliate be at doing [merchant brand] then the next guy ? if the current level of bias continues it’ll be fun to see which brand bidder buys a Learjet first .. no doubt at least one already has a net jet card!

Brand Bidder Cars

This evident favouritism isn’t healthy at all, it’s not giving merchants full value for money and it’s breeding mistrust and annoying many affiliates who do add value from content and generic PPC activity. There needs to be a wider spread of capable affiliates involved rather than the few BBG cliques … and NO I’m not touting for brand bidding rights! I’ll never kiss ass to get a single one!

With my objective head on for a moment, I can understand why networks wish to work with affiliates who behave and will do as they are told and have enough spending power to go for a full month but why, if taking everything at face value, would they risk alienating other affiliates by letting the BBG’s have far too many brand campaigns and add zero value to them, we all know what the crack is with most of them, they are taking the piss, there’s no other phrase for it that so succinctly rounds it up!, I know of top generic performers having their brand bidding status revoked only for a favoured brand bidder to be given it who then proceeds to bid just on brand terms,  despite that fact the original affiliates were driving generic sales too! now how screwed up is that!?

It leaves many affiliates thinking that there is more than this than meets the eye, too many small cliques in play with who knows what network/affiliate agreements, some even speculate that reduced overrides are in play to lure in bigger brands but then a profit share element agreed between network and brand bidders.

Some networks have tried to put a slim facade on brand bidding more recently, Buy.at for one have made token half hearted gestures of late by throwing a couple of campaigns out to a wider audience but it’s too little, too late to be convincing, however I hope it will escalate in volume and depth over this year and become a serious expansion of the number of affiliates involved.

Tradedoubler made a song and dance about opening up brand bidding to a wider group but then proceeded to make the application process for each one about 25 pages long and take around four hours to complete, the resulting information Four hour brand bidding tenderbeing worth well over £1000 in free consultation! with the usual suspects seeming to be taking most of the slots by default in reality it leaves many affiliates fighting for just a couple of spots on most campaigns.

From talking to other affiliates it would seem that those excluded / not deemed worthy to brand bid have lost faith in some networks integrity and impartiality as a result of seeing some of the chosen few do clearly very little and earn so much from poorly set up campaigns (from a merchant point of view, I’m sure the ROI for the BBG’s is excellent) which often don’t cover even misspellings let alone generics.

Many affiliates feel that networks need to be more accountable for their actions in regard to brand bidding and who gets to participate in bidding groups, i.e cut the cloak and dagger crap and the we use “brand bidding specialists” facade and open brand bidding up to those affiliates already performing on generics in preference to the existing few with a proven history on brand, bearing in mind even a child could perform on brand that’s not exactly a glowing recommendation and reason enough to annoy your generic PPC guys.

I’m sure brand bidding will evolve over this year, hopefully into a more transparent situation where a wider spread of affiliates get to show their worth rather than just being seen as second tier generic ppc idiots whilst the BBG’s just mop up all the nice, easy and highly profitable brand traffic on some networks.

It’d be good to hear networks justify why some brand bidders continue to be given brands to hit when it’s patently evident they are adding little value and the generic PPC guys out there on the campaign are overlooked repeatedly, it’s hard not to draw conclusions that there’s a machiavellian set up going on when it’s all so closely guarded by those few that are involved!

affiliate marketing
By Shane April 18th, 2008 Posted in Adwords, Affiliate Marketing, Pay Per Click

12 Responses to “Idiots Guide To Brand Bidding, How To Bid Like A BBG Pro”

  1. Chris Says:

    Shane

    Couldn’t agree more! During the voice conference with iLevel and Next last week, there was mention of opening up a BBG in the future. During the discussion iLevel mentioned that initially it would be opened to a select group who have historically performed well on BBG’s.

    I put it to them that a monkey with two fingers could successully be part of a BBG, as for some it really was just a case of bidding on brand with 4 or 5 generics as you’ve mentioned above. I explained that it wasn’t exactly rocket science and no agency or network could pull the wool over my eyes. I even suggested that the BBG should be available to everyone from the outset, if they did wish to limit it, then instead of allowing the usual suspects in, invite those that have performed for Next in the past. This would then give affiliates who successfuly PPC on generics and even those who rely on content driven sites, to take a slice of pie for doing pretty much bugger all.

    I don’t know what the final outcome from Next or iLevel was as I haven’t yet seen the minutes from last weeks meeting, but I expect the BBG initially to be only available to the people who have a successful track record in BBG’s in the past that has been based on BRAND + GENERIC. After all, they want the professional on the case ;)

  2. Kevin Edwards Says:

    Hi Shane,

    Please see the Affiliate Window response to the changes here:

    http://www.affiliatewindow.com/documents/general/Affiliate_Window_Reaction_to_Google_Trademarking_Policy_Changes.pdf

    Thanks,
    Kevin

  3. Jess Luthi Says:

    Shane… blinding article!!!
    I love your blog!!!

    Shane problem we have is that an awful lot of merchants dont fully understand how paid search works, most have an idea but quiz them a bit deeper and that’s where, I feel, the problem starts. Think with your merchant’s hat on for a moment.

    If you were a bit vague about paid search (it is a skill in itself) who are you more likely going to listen to? IMANAffiliate or IMAnotherMerchant or IMAnetwork?
    Well past experience says, Im going to talk to my merchant friend to see what he/she is doing. Where IMAmerchant has no fellow merchant friend, Im more likely to talk to the affiliate network as they are already the “trusted” element.

    So I can see why closed groups have come into being. BUT… I can also see a decline in the big PPC affs of 2 years ago by contrast with this year and a new wave of ppc affiliates is waiting in the wings, I have no stats to prove that by the way, it’s just a flicker that has come onto my radar. Would be interested to see if merchants are using the smaller affiliates (without a name) over the established (with a name) affiliates.

  4. DougS Says:

    Shane is a spoilt sport….nu nu nu nu nu

    Doug

  5. Shane Says:

    lol thanks Doug :)

    I’m sure some of the more lazy BBG’s will think so too, although I’d hope the brand bidders who do good work would agree with much of my post, I’m guessing that they find it frustrating that whilst they are actually trying hard, others are still riding some brands and adding no value at all and usually all are getting labelled as bad.

    Most will probably think my post is just whining gripes from a guy who isn’t in the club, but they couldn’t be further from the truth, I don’t care if I never get any brand action ever again but it does bug me that many of those that are getting the action aren’t adding the value they should be.

    For those thinking there’s no money in brand.. check out the figures below, ok it’s an extreme case but illustrates how it can be at the top end of the spectrum ! :

    I started one of our PPC client’s brand campaign a week ago to build up some history for May the 5th in case competitors start bidding on their brand, It’s running at $0.35 cents per conversion with an average basket value of £36.00, which equates to a commission payout of around £7.50 per sale if it were an affiliate doing the bidding .. the spend is $111.98 with 317 sales so far which would yield around £2396.52 commission from about £55 spend !!

    That’s around 18 pence to earn £7.50 !! around 4350% ROI, and multiply it up for a month you are look at £10k commission for a £200 spend !!

    Ok yup before anyone starts frothing at the mouth as I said this is more of an extreme case most brands aren’t so hot, some have trouble converting on their own brand terms never mind generic, but on the whole, life has been easier on brand than generic yet some networks would rather sweep most brand action straight to the brand bidders rather than best performing of the existing affiliates on the program and that’s just not fair to those existing affiliates.

    As I point out in my post, not ALL affiliates who do much of the brand bidding are bad, some are doing good work, bidding on generics, adding value and trying harder, and yes those of us who have been at it for a while are all guilty of having a good drink out of some brands over the years and whilst I do understand much of the reasoning behind who gets to brand bid by networks i.e, budget capacity, quick compliance and good behaviour, etc.. there are still some bad eggs getting too much action which devalues that aspect of affiliate marketing and annoys alot of affiliates and exploits some brands.

    It’s time to spread the action out to guys who do perform on generics and would cover a brand properly if given access to it, cut out the lazy brand sitters and let more affiliates and the merchants get a better deal and move this aspect of affiliate marketing up a level.

    if that’s being a spoil sport then yup I’m guilty as charged ;) what’s the fine - where do I pay it ?

  6. How to get into a merchant brand bidding group - without an invite | Doug's mouthpiece Says:

    […] A more serious post by Shane the pie man […]

  7. Brand bidding without an invite Says:

    I am confused why merchants don’t just allow everyone to brand bid????

    Doug

  8. James Says:

    Fantastic post mate, agree with every word of it..

  9. ken Says:

    Top post, Brand name bidding only benefits the network and brand name bidding affiliate, and the cost of the merchant, in the long run if merchants wise up, this could give affiliate marketing a bad name, then again these rich brandname bidders wouldn’t care as they would already have retired.

  10. Kevin Edwards Says:

    As a follow up to this - I’ve asked on several occasions for affiliates to send any supporting marketing collateral or blurb they have on their PPC business, their credentials, past performance etc so we can build up a reserve of material should opportunities arise. It’s clear this takes on a heightened importance in light of the Google changes.

    Unfortunately I’ve had very little response in the past. So if you’d like to send anything through to me please do - kevin.edwards@affiliatewindow.com

    With regards the same affiliates being used all the time, I’m not defending this practice but I’m not surprised it happens. If you’re looking to demonstrate to an advertiser the benefits of well run affiliate PPC (and I’m not talking about just brand name bidding) of course it’s tempting to go for proven performers, especially when some of them invest so much resource and time in working in partnership with network and advertiser.

    Therefore I’d push it back onto affiliates - don’t expect a network to come to you - contact them, explain who you are and send supporting information. I’d be surprised if a network worth their salt wasn’t receptive to this approach.

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