Should You Bid on Your Own Brand Keywords on Amazon? Pros, Cons and How to Decide

Ah, the Amazon ad debate: should you bid on your own brand name, or are you just paying for clicks you’d get anyway? On the surface, it seems obvious—you want to be front and center when someone searches for your brand. But here’s the catch: every click costs, and if you’re already ranking high in Amazon’s organic search, you could be burning budget on shoppers who would’ve found you anyway. In this post, we’re diving into the Amazon-specific pros and cons of branded keyword bidding. We’ll break down when bidding on your own brand name is a winning strategy—and when it’s likely just money down the drain. Ready to find out if it’s worth it for your brand? Let’s go!

Why Brands Bid on Their Own Branded Terms

Let’s start with the basics: branded search terms or branded keywords that include your own brand name—think Liquid Death bidding on the keyword “liquid death”. When shoppers type these into Amazon, they’re showing high purchase intent. They already know your brand and want to find you, not just any product in your category.

So why would you pay to show up on a search you’re likely ranking for organically?

Simple—control and visibility. By bidding on your own brand terms, you guarantee that you appear at the very top, ensuring no competitor sneaks in and grabs your would-be buyers. Plus, you get to control the message, direct customers to specific products, and showcase deals or promotions that might not show up in an organic result.

Pros of Bidding

1. Defend Against Competitors
   When it comes to Amazon, your brand name isn’t sacred territory. Competitors can (and often do) bid on your brand terms to swipe your traffic. By bidding on your own brand, you hold the top spot, making it tougher for competitors to sneak in and intercept shoppers already looking for you.
2. Maximize Your Space in Search Results
   With both a paid and organic listing at the top, you take over more of the search page, pushing competitors further down. This extra screen real estate not only grabs attention but also keeps shoppers from scrolling to competitor listings, boosting your click-through rate.
3. Capture High-Intent Traffic at a Lower Cost
   Because branded keywords are directly relevant to your brand, they typically have a lower cost-per-click (CPC) than general category terms. So, bidding on your own brand name means you’re capturing shoppers with high purchase intent in a cost-effective way.
4. Control Your Messaging and Direct Traffic
   With branded ads, you get to decide what shoppers see first—special promotions, bestselling products, or new launches. Organic results can’t be customized this way, so bidding on your brand gives you more control over the customer experience.
5. Get Data on Brand Interest and Competitor Moves
   Branded ads provide valuable data on impressions, clicks, and who else might be bidding on your brand terms. This insight helps you track brand growth, spot seasonal spikes in interest, and monitor any competitive threats.

Cons of Bidding

1. Cannibalization of Organic Traffic
   Branded ads can end up pulling clicks that would’ve gone to your organic listing anyway. So instead of gaining new sales, you’re just paying for traffic you’d already get for free—driving up ad costs without adding any real value to your bottom line, which can lower your return on ad spend (ROAS). Learn more about what might be secretly eating your ad budget here.
2. Minimal Incremental Value When You Already Rank #1
   If your brand ranks at the top of Amazon’s organic search results, running a branded ad might not add much. You’re basically paying for clicks on a listing that’s already getting plenty of visibility, so those paid clicks might not lead to additional conversions—making the spend feel redundant.
3. Opportunity Cost
   Every dollar you spend on branded ads is a dollar that could be going toward category or competitor keywords that bring in new audiences. By focusing too much on your own brand terms, you could be missing out on opportunities to reach a broader customer base and grow your market share.
4. Challenges with Generic Brand Names
   If your brand name is a common or generic term, Amazon’s broad match can trigger competitor or unrelated ads on your branded keywords, even if they’re not directly targeting you. This can lead to higher CPCs without much added value, especially in highly competitive niches where generic terms drive up costs.

When It Makes Sense to Bid

1. High Competition for Brand Terms
   If competitors are actively bidding on your brand name, it’s time to defend your turf. Bidding on your own brand terms keeps you in the top spot, making it tougher for competitors to siphon off traffic from shoppers specifically looking for you.
2. Weak Organic Presence
   If your brand doesn’t rank well organically on Amazon, branded ads can be a lifeline. They ensure you’re front and center when shoppers search for your brand, giving you that crucial visibility even if your organic listing needs work.
3. High-Value Brand Searches
   During peak seasons, big promotions, or a new product launch, branded ads help reinforce your message and capture high-intent traffic. Ads allow you to highlight special offers or bestsellers, making it more likely that shoppers will click on your brand first, especially when it matters most.

When It Might Not Make Sense to Bid

1. Strong Organic Presence with Low Competition
   If your brand already ranks first organically and competitors aren’t bidding on your terms, branded ads might not add much value. You’re already capturing the top spot for free, so spending on ads here could just be redundant without driving additional sales. In these cases, tracking your organic ranking can help ensure your brand stays visible in search results without relying on ads. Learn how to check and track your organic ranking on Amazon in this step-by-step guide.
2. Limited Budget with Growth Goals
   If your main goal is growth and you’re working with a limited budget, branded ads might not be the best use of funds. Instead, focus your budget on category keywords or competitor terms to reach new audiences and expand your customer base beyond those who already know your brand.

Best Practices for Optimizing Branded Keyword Bidding on Amazon

1. Conduct a Lift Test
Try running branded ads for a set period and compare results to times without ads to see if they actually increase traffic or conversions. If branded ads bring in incremental sales, they’re worth the spend—if not, consider cutting back.

2. Monitor Competitor Activity
Keep an eye on whether competitors are bidding on your brand name. If they start to appear more frequently, ramping up your own branded ads can help defend your position.

3. Adjust Budget Seasonally
Prioritize branded ads during high-competition periods like holidays, product launches, or big promotions. These are times when extra visibility can make a difference in capturing high-intent traffic.

4. Reallocate Budget Based on Performance
Use your data to see how branded ads are performing. If they’re not adding much value, consider shifting some budget toward category or competitor keywords that bring in new audiences.

How to Set Up Branded Search Terms on Amazon

1. Identify Your Branded Keywords

• List Your Core Brand Keywords: Start by listing all essential branded terms, including variations of your brand name, product names, and any misspellings or abbreviations customers might use.
• Include Product-Specific Keywords: If you have unique product lines, add these as separate branded terms. For instance, if your brand is “GlowWell” and you have a product called “GlowWell Radiant Serum,” include both the brand and product name.
• Consider Related Terms: Think about terms commonly associated with your brand, like “GlowWell skincare” or “GlowWell moisturizer.”

2. Choose the Right Campaign Type

• Sponsored Brands Ads: These are effective for branded searches, as they appear at the top of the search results and showcase multiple products, your brand logo, and a custom headline. This is ideal for brand reinforcement.
• Sponsored Products Ads: These ads also work well for branded keywords. They appear within search results and on product pages, targeting specific branded searches that bring traffic directly to individual product listings.
• Sponsored Display Ads: Use these ads to retarget shoppers who have viewed or previously purchased your brand, keeping your brand in front of those with high buying intent.

3. Add Branded Keywords to Your Campaign

• Create a New Ad Group: In your Amazon Ads console, create an ad group specifically for branded terms within the campaign type of your choice. This keeps your branded keywords organized and separate from your non-branded or category keywords.
• Set Your Keywords: Add each branded keyword in exact and phrase match types to ensure your ads show up when users search for these terms specifically. Using broad match could inadvertently trigger your ads on unrelated searches, which you’ll want to avoid.
• Set Bids Appropriately: Since branded keywords often have lower CPCs, you may not need to bid as high as you would for broader category terms. Start with moderate bids and adjust based on performance.

4. Optimize Your Ad Copy and Targeting

• Customize Headlines and Ad Copy: Sponsored Brands ads let you add a headline. Use this to highlight key benefits, popular products, or special offers that will resonate with high-intent shoppers searching for your brand.
• Select Relevant Products: If using Sponsored Brands ads, choose a few bestsellers or flagship products to feature, as these are often the products that branded searchers are looking for.

5. Monitor and Adjust Your Campaign

• Track Key Metrics: Regularly review impressions, CTR, CPC, and conversions for your branded keywords to see how well the campaign performs. High-intent traffic from branded searches typically leads to higher conversions, so monitor closely.
• Optimize Based on Performance: Adjust your bids, add any new branded terms that emerge, and update ad copy based on what’s working best. If you notice a competitor targeting your brand name, consider increasing your bids to secure top placement.

Conclusion

Making data-driven decisions about branded keyword bidding is essential. While branded ads can protect your brand from competitors and capture high-intent traffic, they don’t always deliver extra value. For some brands, they’re a strategic win; for others, they might be wasted spend.

Wondering if branded keyword bidding is right for your Amazon strategy? Sign up for a free audit with us to uncover hidden opportunities, optimize your ad spend, and drive smarter growth for your brand.