Well it more than likely it means increased search spend for many organizations.
There is no doubt that for key brand terms and previously protected keyword terms the average cost-per-click (CPC) will increase as more companies and organizations are now free to bid in the somewhat "opaque" Google auction process.
No prizes why Google changed it then.
Like all major policy changes from Google it has caused a flurry of commentary on the likes of Twitter and amongst the search advertising industry. I have been asked about it daily since it was announced by many agency personnel and naturally concerned clients.
What was previously the case across the majority of APAC was when you registered your trademark keyword terms with Google it meant your competitors, affiliates or unauthorized resellers could not buy those terms and subsequently have an ad triggered against it.
In a change which will took effect from June 4th 2009, your competitors or anyone else can add these previously "forbidden" keyword terms to their campaigns. If your keyword terms have been registered with Google as being "trademarked" that term will NOT be allowed to be seen in the ad copy but the ad CAN BE shown.
For example:
Coke can buy the keyword "Pepsi" and have a Coke ad appear on Google as long as the keyword "Pepsi" is not shown in the ad copy. (That is as long as Pepsi has registered its trademark keywords with Google)
This is a major change.
Australia and New Zealand are not affected at this stage.
I am guessing because Google in the Australian market has already been the subject of many legal and (recent) regulatory challenges and does not see the upside at this stage. China is another market that is missing from this recent policy change. Which, again, due to recent noise over market leader Baidu and its keyword and paid ad issues, I imagine why Google has chosen discretion over revenue raising in this market.
A list of all 190 countries can be found here:
The main APAC countries affected are:
India
Indonesia
Japan
Malaysia
Philippines
Singapore
Thailand
In a related Google policy change in the USA, there will be some instances where even though you are the owner of a registered trademark, Google will allow the ad to be shown and have the keyword appear in the ad copy. So much for brand protection!
From Google's site:
"We permit a trademarked term to be used in the ad text of ads that appear to be submitted by resellers; informational sites; the makers or resellers of components or parts for the goods and services related to the trademark term; or compatible components or parts for the goods and services related to the trademark term. The product or services from resellers must be on the ad's landing page and must be clearly available for purchase."
This change will take effect from June 15th. All of these changes have been made under the guise of relevance for the user. Which, I am sure is true, in part.
However, it would be much more transparent of Google if they admitted it was to also increase advertising revenue at a time when they, like many around them, are under pressure to show continued revenue and profit increases.
Maybe they will when earnings come around next quarter.
Robbie Hills is CEO for GroupM Search in Asia Pacific.
