- There may be increased monitoring of the use of trademarked terms in advertising.
Google Keyword Bidding: After the recent decision of Delhi High Court, keyword bidding has become a hot topic in the digital advertising world. The court has clarified in the case related to Google and Hindware that if a company bids to show advertisements in the trademarked name of its competitor, then it may fall in the category of trademark infringement. In such a situation, it becomes important to understand what keyword bidding is and what impact this decision can have on the online advertising industry.
What is keyword bidding?
Keyword bidding is a method of digital marketing in which companies pay for certain words or phrases on search engines like Google so that their ad appears higher in the search results. In this process, advertisers first select the words with which they want to associate their product or service.
After this they decide the maximum amount per click (Cost Per Click or CPC). When a user searches for that keyword, Google runs an auction process and ads from advertisers with the most competitive bids are shown in prime positions.
What is the root of the dispute?
Keyword bidding is generally considered a legitimate advertising technique. But the dispute starts when a company bids on the trademarked name of its rival. Suppose a person is searching for a particular brand, but at the same time an advertisement of another company comes in front of him because he had bid on the name of that brand. In such cases, the parent brand may claim that its identity and reputation are being taken advantage of. On the other hand, the advertising company may call it just a marketing strategy. This legal conflict has been a topic of discussion in the digital advertising industry for years.
What will be the effect of Delhi High Court’s decision?
After this decision of the court, monitoring of online advertisements in India may become more strict. Particular attention will be paid to those cases where trademarked words are used to display advertisements.
Experts believe that now companies can be more active in protecting their brand names and will not hesitate in taking legal action against competitors. Also, Google may also have to review its advertising policies in India so that such controversies can be avoided in future.
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