The Value of Branded Keywords in Search Ads: A Data-Driven Exploration

In the ever-evolving world of digital marketing, one of the perennial debates that often ruffles the feathers of business owners and marketing decision-makers revolves around branded keywords. It's a topic that's been known to spark heated discussions in boardrooms and marketing strategy meetings. Are branded keywords truly worth the investment? Do they deliver the promised results, or are they merely an additional line item in the marketing budget?

From the performance marketer's perspective, branded keywords are like the crown jewels of a campaign. They tout impressive metrics, claiming phenomenal performance and exceptional returns on ad spend. But here's the real conundrum: Are these conversions genuinely incremental? In other words, do branded keywords bring in customers who wouldn't have found your business otherwise? Or are they simply cannibalizing clicks and conversions that would have occurred organically or through other keywords?

To answer these questions and dispel the myths surrounding branded keywords, we need a data-driven approach that leaves no room for ambiguity. Enter the "geo-incrementality experiment," a method that allows us to discern the true impact of branded keywords. Let's dive into the details.

Geo-Incrementality Experiments: A Strategic Approach

Geo-incrementality experiments are a savvy way to determine whether branded keywords are driving true incremental conversions or merely inflating the numbers. Here's how it works:

1. Geographic Segmentation: Divide and Conquer

  • If your advertising efforts span across a large geographic area, consider dividing your target regions into two distinct groups: the test group and the control group.

  • It's crucial to ensure that both groups represent roughly equal value in terms of conversions. This balance is key to obtaining meaningful results.

2. The Power of Difference-in-Differences (DiD) Testing

  • Now, let's talk about the magic of DiD testing. It's a statistical method that measures the difference in performance between the test group (where you actively bid on branded keywords) and the control group (where you refrain from using branded keywords).

  • This comparison is where the truth about the impact of branded keywords begins to emerge.

3. Multifaceted Analysis: Four Weeks, Three Periods

  • The geo-incrementality experiment typically spans at least four weeks, divided into three distinct periods:

    • Four weeks before the test

    • Four weeks during the test

    • Four weeks after the test

  • During each of these periods, you'll analyze the impact on various aspects, including SEM (Search Engine Marketing) performance, direct traffic, and organic conversions.

Unlocking the Insights: What the Data Reveals

By conducting a geo-incrementality experiment and applying the principles of DiD testing, you'll gain valuable insights into the true impact of branded keywords. Here's what you'll uncover:

  • Whether branded keywords lead to incremental conversions, meaning they bring in customers who wouldn't have otherwise engaged with your business.

  • The extent to which branded keywords may be cannibalizing existing clicks and conversions that would have occurred through organic searches or other keywords.

  • A clear picture of return on investment (ROI) for your branded keyword campaigns, helping you make informed decisions about your search ad strategy.

What Were The Test Results I’ve Seen?

While I won't disclose the company's name, the results of our analysis revealed that branded keywords were contributing little to no incremental value in terms of conversions. Comparing the test group (geos without branded keywords) to the control group, we observed a notable increase in organic marketing qualified leads within the test group. This increase effectively compensated for the absence of spending on branded keywords.

However, there's a caveat to this approach. By not bidding on branded keywords, you open the door for competitors to capitalize on your brand name and potentially secure the top position. In this scenario, it becomes crucial to closely monitor the performance of your competitive guerrilla campaigns. Assess the gains you achieve from these campaigns and apply these insights to understand the competitive landscape and adapt your strategies accordingly.

Conclusion: Data-Driven Decision-Making

In the world of digital marketing, data is your compass. The value of branded keywords is no longer a mystery—it's a measurable reality. Data-driven insights empower you to make informed choices about your search ad campaigns, ensuring that every dollar you invest yields tangible returns.

So, the next time the question of branded keywords arises, you can confidently answer: "We know the value, and we have the data to prove it."

Ready to explore more marketing insights and strategies? Dive into our blog to stay ahead in the ever-evolving digital landscape.

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