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Why do companies with the first result in Google for their names still pay for Adwords?

by Polarisman
12 replies
  • SEO
    • |
I see this all the time and am not clear on the benefits.

https://www.google.com/webhp?sourcei...544&ion=1&bs=1

For example, Fiverr is #1 in Google for "Fiverr" and no one else is bidding for the term yet they still pay for an Adwords placement. Can someone please explain the logic behind this to me?

Thanks,

Mitchell
#adwords #companies #google #names #pay #result
  • Profile picture of the author yukon
    Banned
    Originally Posted by Polarisman View Post

    I see this all the time and am not clear on the benefits.

    https://www.google.com/webhp?sourcei...544&ion=1&bs=1

    For example, Fiverr is #1 in Google for "Fiverr" and no one else is bidding for the term yet they still pay for an Adwords placement. Can someone please explain the logic behind this to me?

    Thanks,

    Mitchell
    They're probably only paying pennies per click & pretty much guaranteed to rank #1 above organic. They're also most likely running other keywords in their PPC campaign. They also get at least 2 links at the top of the SERPs (PPC + Organic) which reduces CTR for competition.
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    • Profile picture of the author chris_87
      Originally Posted by yukon View Post

      They're probably only paying pennies per click & pretty much guaranteed to rank #1 above organic. They're also most likely running other keywords in their PPC campaign. They also get at least 2 links at the top of the SERPs (PPC + Organic) which reduces CTR for competition.
      Pardon my ignorance, but adwords become cheaper as your position in the SERPS improves?
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      • Profile picture of the author eClicker
        I have seen companies do this with a google local listing and adwords which if you tie the adwords account to google local and rank top three it takes up more real estate to catch more eyes. But I have never heard of google giving you a discount for ranking higher :confused:

        Originally Posted by bluehabit View Post

        Pardon my ignorance, but adwords become cheaper as your position in the SERPS improves?
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  • Profile picture of the author normahl
    Branding purposes
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    • Profile picture of the author PROmotions LLC
      Originally Posted by normahl View Post

      Branding purposes
      I have made a little bit of money bringing this to the attention of some of these companies. Want to make some money? Talk to these companies and tell them they are wasting millions a year on certain keywords, see how fast they put you in charge of their AdWords account.

      Example:

      Acura, gets about 1 million + searches per year, at $3+ per click, they are already number 1 organically. Drop that keyword in AdWords and you're saving at least a million bucks.
      Signature

      Signature!

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      • Profile picture of the author normahl
        I guess for some companies it makes sense to bid on that keyword since sometimes their competitions are bidding for their brand keywords trying to convert that traffic their way.
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  • Profile picture of the author Bisturi
    Many companies don't even know about SEO and don't keep track of their keywords; ergo they are brainwashed on how Adwords will bring in huge traffic, bid irrationally and don't think outside the box.

    On top of the above, if you dominate the first 3 results (2 paid plus 1 organic) you are on boss mode.
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  • Profile picture of the author A87
    Could be several possible answers

    If you appear more you increase your chances of being clicked on. This is probably the reason. They are getting even more traffic.

    However it could be an unintentional broad match. Say you already rank #1 for "best web host" in organic. You ad the keyword "web host" to your adwords account. You will show up for several related keywords on adwords including "best web host."

    Either way they are making money doing it. They would take up all the slots if they could.
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  • Profile picture of the author Polarisman
    Thanks everyone for your answers.
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  • Profile picture of the author nest28
    I been wondering this exact same thing for a while now. If I already type in Wal-Mart, why is there a paid listing over the regular organic one. I'm already trying to get to your site, why buy ads for your own name.

    But maybe there marketing team thinks it's a good idea, maybe these big companies know something we don't.
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    • Profile picture of the author paulgl
      Searchers are stupid, companies are smart.
      Why would people search for fiverr? FB? Twitter?
      Youtube? And yet, those are top searched for terms...

      Stupidity leading to not knowing some results are ads.
      They see what's first, click. Why not snatch that spot
      up?

      Google is pretty smart to.

      Name brands would need to pay pennies on the dollar
      to get the top spot, above search results, compared to
      another adwords user. Probably no other site would even
      qualify for the top spot. Something adwords users
      should learn quick. Sometimes you are not allowed to
      bid on top spot.

      Real companies treat their businesses like real
      businesses. So they pay to advertise. Go figure.

      But, some companies probably don't bother paying.

      Some variations of brand name and search might not
      get brand name #1 ad by default. Depends on what
      that company is bidding on.

      Paul
      Signature

      If you were disappointed in your results today, lower your standards tomorrow.

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  • Profile picture of the author claimjusticeuk
    Originally Posted by Polarisman View Post

    I see this all the time and am not clear on the benefits.

    https://www.google.com/webhp?sourcei...544&ion=1&bs=1

    For example, Fiverr is #1 in Google for "Fiverr" and no one else is bidding for the term yet they still pay for an Adwords placement. Can someone please explain the logic behind this to me?

    Thanks,

    Mitchell

    yes it's definitely branding purposes - I am sure most people click the natural result, but when you see the top ranking site on position 1 (adwords) then position 1 natural position - it just gets the brand more out there and available.
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    freeads
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