The answer to this question truly depends on the program. Each merchant has its set of rules that govern what affiliates can and can’t do when it comes to PPC. We commonly see the rules fall into one of these categories:
When PPC Is NOT Allowed
Whether it’s due to a brand sensitive executive, an in-house paid search team or a lack of understanding of the affiliate channel, some merchants simply ban affiliates from using PPC to promote them.
If you are using PPC to drive traffic to your site or any specific merchant, pay particular attention to programs that forbid PPC. Though you may not be promoting that specific merchant, if they are mentioned on the landing page (consider sidebars with “recently added” coupons and deals for example), or one to two clicks away from that landing page, the merchant could have an issue.
When PPC Is Allowed
…but Trademark Bidding is prohibited, and additional keywords are restricted
The next category of merchants has thought through their PPC strategy and understands that affiliates can contribute to the big picture, but they want to keep the affiliates on a short leash.
Their reason – competition.
If the merchant is bidding on their trademark or a set of long-tail keywords, like “area rug coupons,” they don’t want their affiliates who are sending traffic to them to drive up the price of the clicks. The merchant knows the words they have covered, and they don’t want affiliates to compete with them on those words. So, they simply restrict affiliates.
They’ll start by prohibiting keyword bidding, and then will add a list of other keywords that affiliates can’t “outbid” them on. So, they essentially secure their top spot for those words/phrases. Affiliates can bid on them – but they can’t drive the price up for the merchant.
These merchants have thought about this strategy a LOT. They are watching their affiliates and their PPC competitors… most of them will subscribe to tools that help them monitor the activity and will know within seconds if you violate their terms.
When PPC Is Allowed
…but Trademark Bidding is prohibited
Like the last category, these merchants have a PPC group that does not want to compete with affiliates. They may not have their long-tail strategy worked out, or may have an abundance of SKUs, deals, and topics and have decided not to restrict additional terms. Whatever their driving force, expect these merchants to have a close eye on their trademark in paid search results – if you violate this term, they’ll know about it within seconds.
When PPC Is Allowed
…with no restrictions
The last category holds the most potential for affiliates. These merchants say “go for it.” You’ll find that most of them don’t have an in-house PPC department (if they do – there is fierce competition between departments) and have decided to leave it to their affiliates to handle their PPC.
This “kill two birds with one stone” approach could be your key to success with affiliate marketing…