I read a post on Paidcontent.org yesterday (here is the link : http://www.paidcontent.org/entry/419-done-with-google-american-airlines-targets-yahoo-with-trademark-lawsuit ) that got me thinking about the challenges and risks that Google’s initial decision to allow competing companies to bid on trade marked terms of their competitors and whether this might have an impact on the SEM Agencies and ultimately Google’s market.
Due to the rules that Google established that allow companies to bid on trademarked terms, until requested otherwise, a bidding frenzy was created for smart, small upstarts, and large forward thinking competitors. For example today if you do a search on American Airlines within Google, there will be no advertising, but if you do a search on the key words United Airlines, there are multiple advertisers, though in this case United isn’t one of them, and therefore an SEM would recommend that United actually compete on this keyword, as they know that a large percentage of “search traffic” actually clicks on the paid placements versus the “organic” placements and therefore not bidding on your trade term decreases your audience opportunity. Or, another option that American Airlines determined was appropriate, and Google ultimately agreed was to defend the trade mark and prohibit advertising on the trade term period.
I don’t know, but I believe at least 10 - 20% of Google’s revenue comes from trade term related bidding, not all terms are defensible or protected, so it may be less, but it definitely in my humble opinion is a material amount of Google’s revenue generated terms, as they are highly competitive. I will not speculate further than this, but am curious about the actual percentage of revenue, the brands that know and those that will also pursue the legal strategy, and if there is potential for a greater amount of damage to Google than just the revenue?