Google to Allow Trademark Terms in Adwords

7th August 2010

Categories: News - Latest

From the 14th September, UK customers of Google’s AdWords will be able to include their rivals’ trademarked terms in their AdWords text, bringing them in line with the US.

This means that advertisers will be able to use third party trademarks in their ad text,  even if they don’t own that trademark or have explicit approval from the trademark owner to use it.

Google argues that this improves the experience for users. An example from the US of how the change works in practice refers to the clothing vertical: “Resellers of jeans have been able to highlight the actual brands they sell in their ad text making their ads even more specific and relevant for users.”

This, in principle, will also apply to resellers of travel products. UK agency BigMouthMedia has issued a statement in response to Google’s announcement in which it says that price comparison sites will be the main beneficiary of the change. Travel, finance and electronics are the verticals which will be most affected by this, it said.

Some commentators have suggested that the impact of the change when introduced in the UK was mitigated by gentleman’s agreements between firms not to bid against each other for trademarked terms. Whether or not European businesses adopt a similar approach remains to be seen.

Google’s approach to trademarked brand names has proved controversial. Earlier this year, Google was effectively given the all-clear when the European Court of Justice ruled in its favour in a long-running court battle with luxury goods manufacturer LVMH.

Source:  Travolution 5th August