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How Do I Ensure I’m Not Cannibalizing Organic Sales for Branded Searches? How Much % of the Spend Should be Allocated to Branded Segments?
How Do I Ensure I’m Not Cannibalizing Organic Sales for Branded Searches? How Much % of the Spend Should be Allocated to Branded Segments?
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Written by Matilda Lee
Updated over a week ago

Quick Links:

Features/Ad Units

  • Stream

  • Search Insights

  • Sales & Traffic

KPIs

  • Share of Voice

  • Organic Sales

Introduction

Typically, advertisers allocate 2-7% of spend to branded segments. How can we justify paying for branded traffic if someone already has a high intention of purchasing your product?

Brand spending should achieve the following:

  • Cross and upsell various categories or products that typically don’t get enough traffic

  • Brand defence strategy where your competitor sells a similar product



Method 1️⃣ - Search Insights & Brand-Based Goal

  • Pick the top 10 branded search terms and use Search Insights to analyze both TOS and organic placement SOV:

    • If you have high organic SOV (>90%) consistently throughout the day, decrease bids by 50%.

    • If your TOS SOV falls below 90%, you should bid aggressively on those branded terms.

Transition to a brand-focused or advanced goal type. This maximizes efficiency in utilizing branded ad spend and allows a more assertive approach in leveraging Unbranded / Category / Competitor spending for broader reach and increased incremental growth.

Example:

You're managing ASIN A, which consistently secures TOS placements and maintains a high organic ranking. This could mean you're investing in a product that could have been purchased even without an aggressive ad campaign.

In such cases, we recommend checking the organic rank for this ASIN under branded terms using Search Insights. If the Organic SOV is high, consider bidding aggressively for non-hero ASINs instead. You can use this space to elevate non-hero products—like those with high inventory, newly released items, or high potential but low traffic—to the forefront by bidding aggressively and aiming for branded top search placements.


Method 2️⃣ - Stream and Sales & Traffic

Stream allows users to reduce ad spend on branded campaigns during specific hours or specific days of the week. You can use this to limit unnecessary branded spend on a daily and hourly level, then view the impact on Organic and Total Sales through our Sales & Traffic tab. The goal is to maintain a steady overall sales level while observing a decrease in Attributed Sales % (i.e. the % of sales coming from ads).

Example:

A company typically invests heavily in branded campaigns throughout the day. By using Stream data, they can see decreased competition through low CPCs primarily during late evenings and early mornings. They reduce branded search terms’ bids during these hours. After implementation, they noticed a consistent total sales figure, yet organic sales increased significantly during the adjusted time slots.


Article last updated December 2023. If you find this information to be out of date, please contact hello@perpetua.io.

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