Why Branded Search is Overrated
Branded search often stands as a pillar of strategy for many businesses. Branded search refers to the queries that include a specific brand’s name or variations thereof. This tactic is often perceived as crucial due to its apparent direct correlation with higher conversion rates. However, an over-reliance on branded search can be devastating. This blog explores the nature of branded search, examines its common arguments, identifies its challenges and limitations, and suggests a more data-driven approach to digital marketing.
What is Branded Search?
Branded search involves search queries that include a brand’s name or close variations. For example, searches like “Nike shoes,” “Apple iPhone,” or “Starbucks coffee” are all branded searches. These queries indicate that the user is specifically looking for information or products related to a particular brand, often signifying a higher intent to purchase or engage.
1. The Case for Branded Search: Common Arguments
Branded search highlight several key benefits, for example:
Brand Recognition
Branded search reinforces brand awareness. When consumers search for a brand by name, it indicates a recognition and preference that has been cultivated through previous marketing efforts.
Higher Conversion Rates
Because users searching for branded terms are already familiar with the brand, they are often further along in the funnel. This familiarity typically leads to higher conversion rates compared to non-branded searches.
Protection from Competitors
Bidding on branded search terms ensures that competitors cannot easily capture traffic from users specifically looking for your brand. This defensive strategy can help maintain market share and protect customer loyalty.
2. Challenges and Limitations
Despite its advantages, relying too heavily on branded search presents several challenges:
Inflated value of Branded Search Due to Privacy Restrictions
Privacy restrictions have made it increasingly difficult to track the full customer journey, leading to an overemphasis on the last click or interaction before a conversion. This causes branded searches, which often occur later in the decision-making process, to appear more valuable than they might be. As a result, businesses may allocate more resources to branded search campaigns, potentially overlooking the importance of earlier touchpoints.
Dependency on Existing Customer Base
Branded search primarily targets users who are already aware of the brand. This limits the potential for attracting new customers and expanding the market base. Relying heavily on branded search can create a closed loop where only existing customers are reached.
Vulnerability to Market Shifts and Competitor Tactics
The digital landscape is constantly evolving, and market dynamics can change rapidly. Competitors may aggressively target your branded terms, inflating costs and diminishing returns. Additionally, changes in consumer behavior or preferences can suddenly impact the effectiveness of branded search strategies.
3. Alternatives and Metrics of Success
To mitigate the limitations of branded search, consider a more data-driven approach to understanding its true value:
Data-Driven Attribution Models
Use attribution models to understand the full customer journey. Recognize that branded search is often a part of the customer’s path to conversion, but not necessarily the main driver. Attribution models such as multi-touch attribution can provide a clearer picture of how different marketing channels contribute to conversions. This helps allocate resources more effectively and optimize the overall strategy.
Analyzing Customer Journeys
By analyzing the complete customer journey, marketers can identify the true impact of branded search. Often, branded search appears towards the end of the customer journey, acting as a confirmation step rather than an initial driver. Understanding this can shift the focus towards channels that initiate and nurture customer interest.
Measuring Incrementality
Incrementality testing helps determine how much of the branded search traffic is genuinely incremental versus traffic that would have converted anyway. This involves experimenting with withholding branded search ads in certain markets and measuring the difference in conversions. This data can reveal the actual value contributed by branded search.
4. Conclusion: Rethinking Branded Search
While branded search has its up-sides, its limitations highlight the need for a more balanced approach in digital marketing. Dependency on an existing customer base and vulnerability to market shifts suggest that diversification is essential. By integrating data-driven attribution models and incrementality testing, businesses can gain a clearer understanding of the true value of branded search. Embracing a holistic view of marketing metrics will ultimately drive growth and ensure long-term success in an ever-changing marketplace.
