Coming shortly after speculation from both Kevin and myself as to how firms would react to the change in Google’s keyword policy, a number of businesses are reportedly considering a legal challenge to the change.
The search engine’s decision to allow businesses to bid for their rivals’ trademarks is widely expected to drive up the cost of pay-per-click advertising in all sectors. Furthermore, in addition to the high cost, firms face the threat that if they fail to buy the advertising space, their loyal consumer will receive a dose of competition awareness, even if they do not choose to click the paid ad.
It was reported that Tesco pledged not to bid on competitors’ trademarks and urged its peers not to either. This certainly seems to be the case at the moment; Googling Tesco or Sainsbury’s throws up no paid ads, although slight misspellings such as Tescos and Sainsburys have pay-per-click ads for BeatThatQuote.com.
Now, though, Marketing Week reports that a “heavyweight” consortium of brands – which it understands includes Lastminute.com and Saga, and which definitely included the Association of British Travel Agents – have met to discuss raising a legal challenge to the change.
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We think it is a good idea but would like to see how these attempted legal pursuits end up!