In yesterday’s blog post, we delved into brand bidding, as it relates to merchants. Today, we are re-examining brand bidding from the affiliate’s perspective, with at look at some trends, consequences and some good old fashion advice.

Brand bidding is when an affiliate targets specific keywords associated with a brand, as opposed to a generic word, such as a noun or adjective that describes the product. Usually when brand bidding, an affiliate is bidding on a trademarked name, and is often therefore “competing” directly with the merchant.

Every merchant will have different policies when it comes to brand bidding, so it makes for good practice to check out a merchant’s Terms & Conditions as you join a program. If you’re not sure, or the policy seems unclear, reach out to the affiliate manager to seek clarification. Going ahead with brand bidding without permission could lead to a myriad of negative outcomes, including having your sales declined, missing out on a performance bonus, being out-of-pocket for your PPC investment and even being kicked out of a program completely.

Many merchants may not allow bidding on their brand name, but may allow bidding on misspellings or variations of their brand name. Either way, affiliates should consider the cost of brand bidding. With other affiliates bidding on these keywords, as well as merchants, the costs can be high, and depending on what an affiliate has in mind in terms of ROI, may well be out of their spending budget.

That being said, it’s not just about how many people are bidding on a keyword that will determine your PPC price. Relevancy and quality content are equally important here, and may in fact play a more critical role in determining your bid price. As a general guideline, the better your landing page, the lower your bid price, so keep this in mind when investing in PPC.

For affiliates, it really is paramount to be in line with a merchant’s rules and regulations, especially concerning their brand name. It’s in your best interest to create long-lasting relationships with merchants that are based on loyalty and trust. The benefits of creating this kind of positive relationship are numerous, and may indeed lead to exclusive promotions, co-branded marketing tools and even the exclusive use of keywords.