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How will competitors react to competitor bidding?

How will competitors react to competitor bidding?

How will competitors react to competitor bidding? Simply stated: the higher the interest investors have, the closer the spread becomes. If we bid on competitor brand terms and they get more brand searchers than you, they are likely going to first ask you to stop because they would be at a loss bidding back on your brand terms as you have fewer searches.

By using simple models like this to predict all of the different outcomes of bidding on different brand terms, if you fight with a strong and reliable brand who offers a similar service or product to yourself, their potential customers could be satisfied to see your offering too. Competitor brand bidding can be an effective way to build awareness of your alternative brand. When using own brand terms on bidding, when people search more on your brand, your brand name will appear top of the bidding.

Nobody is offering on your brand and you appear in position 1 naturally then it’s best to invest your ad budget in other states and decline from brand bidding. Compare that to some of the high competition product-based in the market like credit cards, aggressively bidding on each other. If we can consider brand bidding is a potential outcome, then brand bidding is profitable for your business.

In a very bad scenario of bidding on your competitor’s brands is possible legal action from your opponents. If opponent brand bidding is done wrongly, there can be legal results. But, in the results, the sort of bidding war can be costly and, eventually, waste money for both sides.

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