Brand names function better as search marketing keywords than non-branded terms, according to a study conducted by online travel agency Travelocity.
The company found that only 4% of its bookings came from ads bought on un-branded search terms, suggesting Travelocity’s own brand name is responsible for 96% of its business.
Chief marketing officer Jeffrey Glueck told Advertising Age:
If the rule can be extrapolated across the industry, it would mean marketers at an anti-perspirant maker should purchase ads for “lynx” but not for “deodorant”, “anti-perspirant” or even “bowchickawowow”.
Glueck cites a 360i study that found marketers spend just 5% of their ad spend on brand name search ads – but that they drive 80% of their search marketing profit.