How Trademark Infringement Increases Cost Per Click

Avery's leadership position has made their name synonymous with a variety of label products. While they sell labels, the company also focuses on software solutions through their Design and Print Online tool, as well as the WePrint Premium Printing Service.

The brand brought on Chacka Marketing to spearhead its search marketing and advertising efforts. Part of Chacka's services to clients focus on protecting the brand's name online, which means the agency monitors for trademark infringement issues related to brands.

Avery’s trademark was being used by unauthorized advertisers. It became evident that the presence of the Avery trademark improved the relevance of competitor's ads each time a consumer would query the keyword "Avery."

It would not only lead consumers to the competitor, but improve the competitor's quality score and lower their cost to advertise. This allowed the competitors to become more aggressive, and lend a hand to increase Avery’s cost-per-click (CPC) on brand searches.

When David Grow, digital media manager at Chacka Marketing, first began monitoring the Avery's paid-search campaigns, he also followed the brand keyword terms to prevent unauthorized use. He immediately noticed from the reports that the cost per click (CPC) for Avery's core brand terms began rising.

The cost per click for core brands' terms, the ones that match exactly, continued to rise. In fact, brand CPCs rose by 67%. For some keywords, the CPCs rose more than 1,000%, according to Grow. Some of the terms running in paid-search advertisements across Bing, Yahoo and Google included Avery, Avery Labels, and many other variations of the name.

Grow provided Avery with a breakdown of the violations recorded through software from The Search Monitor's reports, which detailed time, day, redirects and search terms.

Grow, who has a degree in law, asked the search engines to take down the trademark infringed ads. The ads would come down, and soon back up, repeatedly, like a rollercoaster that never stops. It wasn't until Avery delivered a cease-and-desist order to the company infringing on the trademark that the paid search ads stopped.

Without the boost to their ad relevancy that the keyword "Avery" brought, the company infringing on the trademark could no longer afford to aggressively bid on Avery brand terms. As a result, Avery's CPC fell by 64%, clicks rose 34%, and cost decreased 51%.

Grow said the reduction in brand CPCs saved thousands of dollars for the year.



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