Why You’re Wasting Money on Branded Search: Our Approach to Smarter Budget Allocation

Sure, branded search campaigns can help protect your brand from competitors bidding on your name, but many ecommerce brands end up spending a large portion of their Google Ads budget on clicks that would likely have happened organically. This is a common mistake, and it can significantly impact the profitability and scalability of your overall campaign strategy.

In this article, we’ll break down why over-focusing on branded search campaigns is a bad idea, how to identify when they’re actually useful, and where you should be focusing your budget for more effective growth.

 

 

The Problem with Branded Search Campaigns

Let’s start with why branded search isn’t always the best use of your ad spend. Bidding on your own brand name can feel like an easy win—high click-through rates (CTR), low cost per click (CPC), and conversions can look great. But, in most cases, you’re paying for clicks that you would have received anyway through organic search.

Imagine a customer searching for your brand name or one of your popular product names. They’re already familiar with your company, they’re likely interested in your product, and there’s a good chance they’d click on your organic listing even if you didn’t have an ad at the top of the page. By running branded search ads, you’re essentially paying for traffic you could have gotten for free.

Why This Hurts Your Bottom Line:

• Low Incremental Value: Branded search ads often capture traffic that was going to convert anyway. You’re not bringing in new customers; you’re just spending money to intercept existing ones.
• Budget Misallocation: The money spent on branded campaigns could be better used on non-branded, competitive keywords that help you reach new audiences and grow your customer base.
• Skewed Performance Metrics: Branded search campaigns tend to have higher CTRs and conversion rates, which can inflate your overall campaign performance metrics and make it seem like your campaigns are more effective than they actually are.

 

When Branded Search Ads Make Sense

While I’ve made a strong case against over-investing in branded search, there are some scenarios where running branded ads makes sense. It’s all about using them strategically rather than as a crutch for your overall campaign.

1. Brand Defense Against Competitors

One of the few legitimate reasons to run branded search ads is to protect your brand from competitors who might be bidding on your name. If your competitors are targeting your brand keywords, they could be siphoning off traffic that was intended for you. By running branded campaigns, you ensure that potential customers see your ad before they see your competitors.

However, even in this case, it’s important to analyze how much of your traffic is being stolen by competitors before committing a large budget. If you notice a competitor frequently bidding on your brand terms, it may warrant running branded campaigns defensively.

2. New Product or Brand Launches

Another good use for branded search campaigns is during new product launches or rebranding efforts. In these cases, customers may not yet be familiar with your new offering, and branded ads can help you build awareness while driving initial traffic. During a launch, it’s crucial to capture as much interest as possible, and branded ads can ensure your new products get the visibility they deserve.

3. Complicated Brand Names or Misspellings

If your brand name is commonly misspelled or hard to remember, running branded ads can help users find you more easily. You can set up ads to target common misspellings or variations of your brand name, ensuring that potential customers are directed to your site even if they don’t type the name correctly. This can be a particularly useful tactic for ecommerce brands with more complicated or less intuitive names.

 

 

How to Measure the Incremental Value of Branded Search

The key to determining whether your branded search ads are worth the spend is understanding their incremental value. In other words, how much additional traffic and conversions are these ads driving, versus what you would have gotten through organic listings?

Here’s how to evaluate whether branded search ads are adding true value to your campaigns:

1. Run a Controlled Test

A controlled test is the most effective way to measure the incremental impact of branded search ads. Turn off your branded campaigns for a few weeks and monitor your organic traffic closely. If you see a significant drop in clicks or conversions, that’s a sign that your branded ads were driving incremental traffic. If your traffic stays the same, it’s an indication that you were paying for clicks you would have gotten for free.

2. Monitor Organic Search Performance

Track your organic search performance for your brand name and related keywords while your branded search campaigns are running. Tools like Google Search Console can provide insights into how well your organic listings perform compared to your ads. If your organic listings are consistently ranking in the top position, branded ads are less likely to add significant value.

3. Check for Competitor Activity

Regularly monitor the competitive landscape for your brand terms. If no competitors are bidding on your brand name, there’s less justification for running branded search ads. However, if you see competitors actively targeting your brand, it might be worth running branded ads to maintain your position at the top of the results.

 

Smarter Budget Allocation: Where You Should Be Focusing

Now that we’ve established why over-reliance on branded search ads isn’t the best strategy, let’s talk about where you should be allocating your Google Ads budget for more impactful results. To grow your ecommerce business, you need to focus on non-branded campaigns that help you reach new customers and scale your revenue.

1. Focus on Non-Branded, High-Intent Keywords

Non-branded campaigns are where the real growth potential lies. These campaigns target high-intent keywords related to your products, helping you reach users who may not be familiar with your brand but are actively searching for what you offer.

For example, if you sell eco-friendly running shoes, you’ll want to bid on non-branded terms like “best eco-friendly running shoes” or “sustainable running shoes.” These users are in the market for a product like yours, and by focusing on these keywords, you can introduce your brand to new audiences.

2. Leverage Google Shopping Ads

For ecommerce brands, Google Shopping Ads are one of the most powerful tools for driving sales. Shopping ads showcase your products with images, pricing, and other details directly in the search results, making them highly effective at capturing user attention and driving conversions.

To get the most out of Shopping Ads, make sure your product feed is fully optimized. Include relevant keywords in your product titles and descriptions, use high-quality images, and keep your prices competitive. Shopping Ads allow you to bid on product-specific terms, which often have a higher intent to purchase compared to general search terms.

3. Invest in Performance Max Campaigns

Performance Max campaigns are Google’s fully automated, goal-based campaign type that allows you to advertise across all Google channels with a single campaign. For ecommerce brands, this is a fantastic way to maximize reach and efficiency.

By using Performance Max, you can show your ads across Search, Display, YouTube, Gmail, and more, all optimized for your specific goals, such as driving sales or acquiring leads. This omnichannel approach ensures that your brand reaches users across multiple touchpoints, increasing the likelihood of conversions.

4. Utilize Dynamic Search Ads

Dynamic Search Ads (DSAs) are particularly useful for ecommerce brands with large product catalogs. DSAs automatically generate headlines and landing pages based on the content of your website, helping you reach new customers with minimal effort.

DSAs work well for capturing long-tail search queries that may not be covered by your keyword-based campaigns. For example, if someone searches for a specific product model or feature that isn’t directly included in your keyword list, DSAs can fill in the gaps and drive more relevant traffic to your site.

 

 

How to Balance Branded and Non-Branded Campaigns

At the end of the day, it’s not about completely eliminating branded search campaigns—it’s about finding the right balance. Here’s a step-by-step approach to achieving the right mix of branded and non-branded ads:

1. Set a Budget Cap for Branded Ads

If you decide to continue running branded search ads, set a strict budget cap to ensure you’re not overspending. A good rule of thumb is to allocate no more than 10-15% of your total Google Ads budget to branded campaigns. This leaves the majority of your budget available for high-growth, non-branded opportunities.

2. Prioritize Non-Branded Campaigns for Growth

Focus the bulk of your budget on non-branded campaigns that allow you to capture new customers and expand your reach. Keep an eye on your cost per acquisition (CPA) and ROAS for these campaigns to ensure they’re driving profitable growth.

3. Review Performance Regularly

Regularly review the performance of both your branded and non-branded campaigns. Track metrics like CTR, conversion rate, and ROAS to determine which campaigns are delivering the best results. Adjust your budget allocation based on performance to ensure you’re getting the most out of your ad spend.

 

 

Conclusion

While branded search ads can have their place, over-relying on them is a costly mistake for ecommerce brands. By strategically balancing branded campaigns with a strong focus on non-branded keywords, Shopping Ads, and Performance Max, you can drive more incremental growth and achieve a higher return on ad spend.

Smart budget allocation is the key to unlocking profitable, scalable Google Ads campaigns for your ecommerce business. Instead of paying for traffic you could have gotten for free, invest in campaigns that introduce your brand to new customers and drive meaningful results.

If you’re ready to take a smarter approach to Google Ads and allocate your budget effectively, we’re here to help. Let’s work together to maximize your ad spend and grow your ecommerce business with strategies that deliver real, measurable results.