Online advertising: Using competitors' brand name as a keyword can backfire

Monday, July 14, 2014 - 22:30 in Mathematics & Economics

Buying keywords of a popular competitors' brand names on search engines such as Google and Bing can backfire according to a new study. Firms often buy brand names of better-known rivals' to reach buyers looking for rivals' products or to be seen in the company of more popular companies. However, contrary to common belief, when an inferior brand's ad is seen next to a superior brand's web links, a large difference in reputation is further magnified in the minds of consumers.

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