Brand names in online search engine advertising campaigns can attract more attention and encourage more sales than campaigns that use generic terms, according to Penn State researchers.
In a study of a major retailer’s online marketing campaign, researchers found that more people click on advertisements that appear on search engine result pages and purchase products when those brand names show up in the ads.
Brand names are words associated with a company and its products, history and reputation. “Hotel” is an example of a generic keyword and “Marriott” is an example of a branded keyword.
To place their ads on search engines like Google (Adwords) and Bing, companies bid against each other for certain words or phrases that search engine users might use in a query. They also create advertisements that are shown on a search’s results page when those queries are entered.
Analyzing the performance of branded search engine advertising could help companies calculate the value of their brands. By measuring the performance of branded keyword ads and comparing them with the branded keyword campaigns of competitors, marketers can estimate the value of their brands, often considered a company’s intangible, but most valuable, asset.