June 11, 2008 | Wednesday
Latitude Brand Term Index update
By Simon Whittick in Features
Following on from our first Latitude Brand Term Index graph please find below the most recent graph.
The idea of the Latitude Brand Term Index is to research how Google’s decision to allow competitors to bid on each others brand terms has affected the Cost Per Click (CPC) of brand terms.
As you can see, since our first entry on 23rd May there were some major fluctuations particularly for partially protected brand terms. The change of major significance was a high at the end of the month, with partially protected CPC’s hitting 30p and all brand CPC’s hitting just under 10p. This was the highest CPC’s had gone since the initial spike after the change came in on the 5th May.
Bearing in mind this spike came at the end of May, we have interpreted it as agencies increasing their clients maximum bids on competitor brand terms in order to spend excess budget at the end of the month. This has the resultant effect of pushing up the CPC for our client’s brand terms.
Since this spike we have seen a plateau in the CPC’s of partially protected brand terms with them steadying at the same level as before the trademark change came into place. Now that CPC’s have hit the same level as before the trademark it makes you wonder whether marketers have found little value in being able to bid on competitors brand terms?
We will continue to monitor the index throughout June to see how these trends continue to develop.
Comments
#1
Interesting chart, nice idea.