In search engine PPC advertising, you bid on the cost per click for keywords via a silent auction format for the right to have your ad show up in a higher position for searches of those keywords in the Sponsored Link area of search engine result pages.
What happens if Company A bids on a keyword in the form of the name of Competitor Company B for the purpose of directing prospects to Company A’s website – a sort of brand hi-jacking? A high profile example of brand hi-jacking was publicized yesterday in my state. Law Firm A bid on Law Firm B’s company name (the usual series of the partners’ last names) as a keyword phrase in Google for the purpose of directing Internet traffic to Law Firm A’s website.
Was this a smart or dumb business decision by Law Firm A? Was it legal or illegal? Was it sleazy or just a sign of the times? First of all, this is not a new situation; it has been going on between competitors for many years. Lawsuits have been filed against search engines and occasionally the advertiser primarily based on trademark laws.
What makes the above case different is Law Firm B is suing Law Firm A based on state privacy law contending that “Defendants’ obtaining and using the keywords (plaintiff’s company name) is an intentional and illegal effort to trade on the hard-earned names, personal reputations and good will of the plaintiffs”. What follows is not legal advice, I am not a lawyer. And even if a search engine allows it, that does not mean you can not be sued.
Yellow Pages’ advertising has and will continue to migrate to the Internet and the disputes will follow. Search Engines are the ’new yellow pages’. Many have tried to sue search engines for allowing brand hi-jacking but with little or no results.
Each search engine has their own fluid criteria for allowing bids on another company’s name based on things like; recent court decisons in various countries; is the name tradmarked; are you an affiliate; are you using the name in a just generic manner, etc, etc. You need to check on the current restrictions of each search engine publisher before deciding to use this PPC tactic.
BUT…. what seems to be a clear legal area is: You can not use another company’s trademarked name or brand, if you have no affiliation with them, in your actual ad copy or in your website content or related marketing collateral without getting black-balled by search engines and/or sued. So you may be able to bid on a competitor’s name as a keyword (a behind the scenes activity), but not use trademark material in your PPC ad or website.
If Law Firm B prevails over Law Firm A based on privacy laws; if potential clients of Law Firm A are turned off by the practice; or if the Legal Association bans the practice as unethical is yet to be determined. In the meantime, prospects that search using Law Firm B’s name could be landing on Law Firm A’s website.
Tags: Add new tag, Digital Marketing, Internet Marketing, Pay Per Click ads, PPC, Search Engine Marketing, Search Marketing
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Isobel,
If this topic is of interest to you, Google “PPC brand hijack” or “keyword hijack” and similar and you will find plenty of reference material. This practice is ‘black hat’ and can lead to problems, so filter what the references are telling you. If it sounds unethical or even illegal. beware of consequences. Here is one reference for example: http://www.quickregister.net/wordpress/2008/11/24/how-to-get-cheap-pay-per-click-advertising-brand-hijack-method/
Or here is a link with a free white paper: http://www.travolution.co.uk/blog/2006/06/brand-hijacking-a-growing-problem.php
Could you recommend any specific resources, books, or other blogs on this topic?
Hello Sarah. After 8 years of collaborating with WSI’s huge network of consultants to mange Internet Marketing campaigns, I have learned that no one person has all the best answers. And no one solution fits all circumstances. Share your ideas when you think I got it wrong and let’s get a conversation going! Gary
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Hi Madeleine,
Digital Marketing is a diverse, expanding, ever changing subject. That is why I enjoy managing this blog. I am the sole author of the posts. The info and opinions are based upon my ongoing WSI Certification training and 8 years of experience managing Internet Marketing programs for a multitude of clients. I also calll upon the expert advice of specialists within the WSI service network. Regards, Gary Smith
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