Paid Search Can Create Negative Impact For Competitors

OMD chartMarketers looking to boost consumer awareness for products and services, as well as create a negative impact on the competition's brands, might want to consider a paid search campaign, according to a study released Thursday by Google and OTX.

Representatives from the two companies presented a Webinar on "The Brand Value of Search." Julie Cannova, EVP at OTX, explained ways that paid search can increase site traffic and key metrics for brands. "Paid search can also be a branding vehicle," said Cynthia Goodrich, senior marketing manager, travel, Google.

Google and OTX explored how search impacts branding across five product categories: air, car rental, cruise, hotel and online travel agency. About 6,000 responses were collected during the research conducted in the U.S. between Jan. 22 and Feb. 7.

Although the research looked at categories related to the travel industry, Cannova noted that the theme would likely transfer to other industries as well.

The research found that paid search increases awareness and brand recall, and also impacts behavioral brand metrics, according to Cannova. "When brands appear in paid search positions the likelihood that consumers will remember that brand from the page they saw also increases," she said. "The brand's ability to stand out is affected."

While dramatic increases occurred across all paid positions, the positions that experienced the greatest lift were "top sponsors" and "top sponsors first organic." An interesting byproduct of the increase in awareness from paid search is the impact on awareness for other brands. Across all the categories, paid search decreased consumer awareness of other brands that appeared in the search engine results query. Not only did it help the paid search brand stand out, but it gave a competitive advantage by capturing the majority of consumer mindshare.

Paid search also keeps the brand in the forefront of the consumer's mind. So, Google and OTX examined the metrics that make people change behavior or brands. The research found that consumers tend to click more frequently on ads that promised provide information, rather than just price. Specific spaces within the paid search listing do too. "Top sponsors and top sponsors plus first organic is the combination most likely to motivate an increase in brand favorability," Cannova said.

2 comments about "Paid Search Can Create Negative Impact For Competitors".
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  1. Ava Seave from Quantum Media, May 1, 2009 at 7:54 a.m.

    Where are the slides and the data this story is based on? Is there a place where Google and OTX posts the real data? It is very hard to understand the one graph that is with the article.

  2. Sarah Grant from adMarketplace, May 1, 2009 at 3:42 p.m.

    Is Google looking at brand awareness generally, or are they looking at conversions to extrapolate brand awareness? And search has proven conversions, but Google came out an announced that long-tail advertising has a better ROI. In addition, travel related clicks in AdWords are ridiculously high - starting at $5/click. Yes, Google is King in search, and yes, verticals can find great conversions and impact their competitors there. But it seems like an apt time for competitors like adMarketplace.com to take some of their affiliate business, and for people to look at ROAS and conversions rather than vagaries like "brand awareness."

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