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Google lifts ban on trademark terms for search ads
Date: 14/05/2009
Get ready for an influx of brand names in Google keyword ads. The search giant, which until now has prohibited the use of trademarked brand terms in ad text on its search-results page, except when permitted by the brand itself, is now allowing the use of trademarked terms in AdWords copy - under some circumstances, that is.
The change will mean that a retailer such as Best Buy will be free to use "Sony" or "Apple" in its ad copy and comparison sites such as Edmonds.com will be able to place ads that contain trademarked terms like "Ford Focus," even if they don't have explicit permission.
Google's AdWords system lets advertisers place their ad messages, which carry a 70-character limit, around a user's search results, often seen on top or to the right on a search-results page.
The new policy, scheduled to go into effect June 15, brings Google in line with Yahoo and Microsoft, which have more liberal policies toward the use of trademarked brands in ads that appear on search pages. The goal for Google is to make all those sponsored links less generic and more effective, potentially boosting click-through rates - and Google's bottom line.
"We do think this will generate higher-quality ads and that more people will click on them," said Terri Chen, senior trademark counsel at Google.
Additional screening
The policy change will require Google to implement another level of screening to its approval process for ad copy and it will give brands fewer options when their trademarked terms are used in ways they don't like. Under the current policy, only entities authorized to use brand names are allowed to submit them in ad copy. With the change, retailers that sell a brand such as Nike will be able to use the brand's name in their ads, as will sellers of components or replacement parts and impartial information and review sites.
Losing control
With the change, brands will lose an element of control. And, as more retailers are able to use brand names in their ads, it may create added competition for branded keywords. The change will only apply to searches in the U.S.
"If you're a brand selling products or services directly, your costs are going to go up," predicted Bryan Wiener, CEO of digital agency 360i. "You are going to see increased competition for terms like 'Sony' because retailers with Sony products are going to be bidding on those keywords at a greater rate."
Overall, one could argue that's good for Sony or JetBlue or Starwood Hotels -- or any other brand that relies on third-party resellers for sales. But it could increase costs for their own direct sales due to heightened competition for branded search terms. Google, on the other hand, argues that more specific ads will give consumers more choice. "It will help consumers because it will allow them to see more ads from more resellers," Ms. Chen said.
Source: Advertising Age
WFA's Digital Network, comprising Global/ Regional Interactive Marketing Directors from within our membership looks closely at issues such as paid-for search across global and EU markets. For more information, please contact Robert Dreblow: [email protected]
