Is Brand Defense on Amazon PPC Worth It? Here’s What You Need to Know

Your Amazon brand is your livelihood. So, naturally, you want to protect it. Many sellers think brand defense campaigns on Amazon PPC are the answer. But are they really worth the cost?

This is a question we hear a lot at AdLabs. The reality is that brand defense can be a smart strategy, but it can also be a waste of money if not done correctly.

In this article, we’ll break down the pros and cons of brand defense campaigns, show you how to determine if you need them, and give you a step-by-step guide to setting them up effectively. Let’s dive in.

What is Brand Defense in Amazon PPC?

Brand defense, in the context of Amazon PPC, is when you bid on your own brand name and related keywords to protect your product listings from competitors who might try to steal your traffic.

Here’s what’s happening: Competitors might target your brand name to show up when customers search for your products. By running your own campaigns targeting your brand, you ensure your products are prominently displayed, potentially pushing competitor ads further down the page.

Think of it like this: you’re building a defensive wall around your brand within the Amazon marketplace.

Why Some Sellers Think Brand Defense is Necessary

Many sellers believe brand defense is essential because they fear losing sales to competitors bidding on their brand name. This fear is understandable.

Here’s why that matters: If a customer searches for “AdLabs software,” and a competitor’s ad shows up above AdLabs’ own listing, the customer might click on the competitor’s ad and potentially buy their product instead.

The logic is that without brand defense, competitors could siphon off valuable traffic and sales. It seems like a no-brainer, right? Just protect your brand at all costs. Well, not so fast…

The Problem with Unnecessary Brand Defense

The truth is, in many cases, brand defense campaigns are unnecessary and can actually hurt your profitability. Most sellers don’t realize this.

Here’s the problem: When customers search for your brand name, they’re usually already looking for your products. If you rank organically for your brand terms (which you almost certainly should), you’re already capturing that traffic.

Essentially, you’re paying for clicks that you would have gotten for free. This increases your ACOS and wastes your ad spend.

How to Determine if You Need Brand Defense

So, how do you know if brand defense is right for you? Here are a few key factors to consider.

Check Your Organic Ranking

• Do you rank organically in the top 3 positions for your brand name and related keywords? If so, brand defense may not be necessary. You’re already capturing the majority of the traffic.
• Are you ranking only in the top 5 positions organically for your brand name? Then brand defense might be the right choice for you.

Monitor Competitor Activity

• Are competitors actively bidding on your brand name? Use a tool like Helium 10 or AdLabs to monitor search term reports and see if competitors are showing up for your brand terms.
• Are competitors’ ads outranking your organic listings? If competitors’ ads are consistently appearing above your organic listings for your brand terms, you may need to implement brand defense.

Analyze Your Data

• Track your ACOS for your brand campaigns. If your ACOS is consistently low (under 10%), brand defense might be worthwhile. But if it’s high, you’re likely wasting money.
• Compare your branded organic vs paid sales. See how many sales are coming from organic brand searches versus paid. This can help you determine if your paid brand campaigns are truly incremental.

Let’s look at a real example: One AdLabs client was spending $1,500/month on brand defense with an ACOS of 25%. After analyzing their organic ranking and competitor activity, we paused their brand campaigns. Their overall sales didn’t decrease, and they saved $1,500/month in wasted ad spend.

When Brand Defense Is a Good Idea

Even though unnecessary brand defense is a money pit, there are definitely situations where it makes sense.

Here are some examples:

• You have a very strong brand: If you have a well-known brand with high search volume, competitors are more likely to target your brand name.
• You’re launching new products: Brand defense can help you quickly gain visibility for new products when customers search for your brand.
• You’re running a promotion: Brand defense can help you ensure that customers see your promotional offers when they search for your brand.
• You sell high-value products: If each sale is worth a significant amount of revenue, protecting your brand from competitors becomes more important.

How to Set Up Effective Brand Defense Campaigns

If you’ve determined that brand defense is right for you, here’s how to set up effective campaigns:

1. Create a dedicated brand campaign. This will help you easily track the performance of your brand defense efforts.
2. Target your brand name and related keywords. Use exact match keywords for maximum control.
3. Set a reasonable budget. Don’t overspend on brand defense. Start with a small budget and gradually increase it if needed.
4. Monitor your ACOS and ROAS. Track the performance of your brand campaigns closely and adjust your bids accordingly.
5. Use negative keywords. Add competitor brand names as negative keywords to prevent your ads from showing up for those terms.

Here’s how to fix it if your ACOS is too high: Lower your bids on your brand keywords. The goal isn’t to pay a premium for traffic you’re already getting organically.

The Bottom Line

Brand defense on Amazon PPC can be a valuable strategy, but only if it’s done correctly. Before you invest in brand defense, analyze your organic ranking, monitor competitor activity, and track your data. If you’re already capturing the majority of traffic for your brand name organically, brand defense may not be necessary.

Want to simplify your Amazon PPC management and eliminate wasted ad spend? See how AdLabs can help you optimize your campaigns and improve your profitability.

Key Discussion Points from the Episode

Here are some of the most valuable insights Andrew and Stephen shared during the full episode discussion:

If there was an ad there that got that sales attribution, that didn’t necessarily add additional sales to the business. It was a sale that would have happened regardless of whether or not there was an advertising. Most people aren’t getting to the bottom of the search page.

Most people aren’t getting to page two. Most people aren’t scrolling down product detail pages, getting to those sponsored rows and clicking and searching through those very much. Alexa, play that Amazon ads podcast.

Which one would you like to hear? The best one. Okay, now playing that Amazon ads podcast.

These gentlemen are completely changing their game. After listening to that Amazon ads podcast, my ads are finally profitable.

This article is based on Episode 78 of That Amazon Ads Podcast. Subscribe for weekly Amazon PPC strategies.