Google initiates paid search bidding war
Google is set to spark a bidding war for paid-for search terms, unveiling a controversial policy allowing competitors to bid on rival trademarked names in the UK. The move follows two months of weak paid search clicks.
The change could see a brand such as Barclays bidding against the trademark terms Lloyds TSB or HSBC, so its sponsored listing comes up when consumers search for a rival company.
The new policy that will come into force after May 5 and allow companies to bid for their competitors trademarked name. Google has been using this policy in the US since 2004 but has previously resisted introducing it in the UK until now.
Gavin Sinden, digital strategy director at Equimedia, says that Google is attempting to bolster its paid search business.
“It’s a little bit coincidental that paid clicks have been falling,” he says. “Now we see this. The two events cannot be disconnected. It goes very much against what Google has been saying about search relevancy.”
He believes the change in policy could spark a bidding war for UK and Ireland trademarked terms.
“What if people start bidding crazy money to go above you for your own brand,” adds Sinden. “How are they going to police that? They have basically have said that they aren’t going to do that. The numbers Google get paid for branded terms could go through the roof.”
Data from Comscore showed a 3% year-on-year increase in Google’s paid clicks during February. The number was an improvement on zero growth in January, although a sharp drop compared to monthly increases of between 25% and 40% last year.
