PaidMediaAffiliates

TM+ Bidding: When to Allow Affiliates to Bid on Your Brand

TM+ bidding can be a powerful strategy to boost capture high-intent customers. However, success hinges on careful coordination with credible, experienced partners to manage spend profitably.

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Alex Goldberg

Alex is an entrepreneur with 10+ years of marketing experience. He bootstrapped a portfolio of affiliate sites to 7-figure profit. Today he advises brands, founders, and marketers on affiliate, SEO and paid media arbitrage.

What is TM+ Bidding?

TM+ bidding, short for “Trademark Plus” bidding, is a strategy where affiliates bid on keywords that combine a brand’s name with additional search terms. Unlike traditional paid search, which typically focuses on broad or product-related terms, TM+ bidding targets highly specific phrases that users search for when they already have an interest in your brand.

For example, common TM+ keywords include:

  • “Brand Name + Coupons”
  • “Brand Name + Reviews”
  • “Brand Name vs Competitor”

This approach allows brands to capture users with high purchase intent, often leading to faster conversions. Unlike other search campaigns, TM+ bidding leverages affiliate partnerships to enhance conversion rate. Sometime affiliates fund the campaigns themselves and only get paid for success. Other times brands reimburse affiliates for ad spend to de-risk, especially in the beginning when funnel economics aren’t well proven.

When to Allow TM+ Bidding

TM+ bidding can be a valuable addition to most brands’ marketing strategy, but if left unmanaged, it can lead to paying for customers that would have purchased anyway, or worse: click fraud. It works best under specific conditions where brand can control risks by working closely with a small number of trusted affiliate partners, usually just 1 or two. In other words, it never makes sense to allow ALL affiliate partners to bid on your brand name. That’s a recipe for disaster.

 

Here’s when it makes senseto allow affiliates to bid on your trademark:

Higher-LTV Customers

TM+ bidding helps convert shoppers looking for honest reviews and other in-depth research before buying. These shoppers are typically more confident in their decision and are stickier, offering higher LTV.

Maximizing market share

TM+ campaigns can help your brand appear on multiple listings in search results, reducing the visibility of competitors and helping you double down on profitable keywords.

Higher Conversion Rate

For many branded queries, a third party is more credible than a brand's own messaging. Badmouthing competitors, for example, won't convert as well as an affiliate's positive endorsement.

How can TM+ Bidding provide incremental value?

Key Considerations Before Launching TM+ Bidding

TM+ bidding can be a strategic advantage, but its effectiveness depends on evaluating the market, understanding your competition, and ensuring you have the capacity to manage it properly. Let’s explore these considerations further:

1

Market Saturation

TM+ bidding works best in competitive industries where search results are crowded. It can give your brand an edge by ensuring visibility for high-intent searches. However, if the cost of ads is prohibitively high in your niche, TM+ campaigns may not be profitable (at the margin).

2

Competitor Activity

If competitors are bidding on your trademark or targeting customers searching for your brand, TM+ bidding can help reclaim that traffic. Approved affiliates can help crowd out competitor ads, reinforcing your brand’s presence with a credible 3rd party recommendation.

3

Internal Monitoring Capacity

TM+ campaigns need consistent oversight to ensure affiliates follow guidelines and deliver incremental ROI. Without proper monitoring, you risk brand misrepresentation and/or inflated CPCs for in-house campaigns. Ensure you reserve resources to manage the activity and performance of your authorized TM+ affiliates.

Risks and Challenges of TM+ Bidding

While TM+ bidding offers strong advantages, these risks underscore the need for a coordinated and well-managed approach:

1

Brand Reputation Risks

One of the biggest challenges with TM+ bidding is ensuring your brand is represented accurately and professionally. Affiliates may create ads that mislead customers or fail to align with your brand’s tone, values, or messaging. For instance, overly aggressive promotions or false claims about discounts can damage trust in your brand. This risk is amplified if multiple affiliates compete for TM+ keywords, leading to inconsistent messaging or poorly executed campaigns.

2

Cannibalized Sales

TM+ campaigns can inadvertently redirect sales you would have earned organically or through existing marketing efforts. For example, customers who might have found you through a direct search or non-paid channel may instead convert through an affiliate’s TM+ ad, resulting in commissions paid for sales you would likely have secured anyway. Over time, this can erode profitability and undermine the value of the affiliate program.

3

Inflated Cost per Click

TM+ bidding requires ongoing oversight to manage affiliate behavior and ensure campaigns deliver ROI. Without proper monitoring, affiliates may overbid on keywords, use prohibited terms, or create low-quality ads that harm performance. Additionally, poorly performing campaigns can inflate costs and reduce efficiency, making TM+ bidding resource-intensive to manage.

Want to talk to an expert about TM+ bidding?

  • Expert Consultation: Benefit from personalized advice based on a decade of experience in affiliate marketing, helping you optimize your TM+ bidding approach.

  • Affiliate management: We handle the complexities of managing affiliate relationships, ensuring alignment with your brand values and compliance with guidelines.

  • Comprehensive Course: Access over 3 hours of in-depth instruction on profitable TM+ campaigns, including step-by-step guides and actionable templates.

Examples of Successful TM+ Campaigns

  • E-commerce Brands: A clothing retailer partnered with select affiliates to bid on “Brand Name + Coupons.” The strategy not only increased visibility but also converted deal-seekers into loyal customers who returned for full-priced items.

  • Subscription Services: A meal delivery service allowed affiliates to run TM+ campaigns on “Brand Name + Reviews.” This captured customers researching the service, significantly boosting new sign-ups during peak seasons.

  • Software Companies: A SaaS brand used TM+ bidding to target users searching for “Brand Name + Alternatives,” effectively reclaiming users considering competitors and showcasing their strengths.

Choosing the Right Partner for TM+ Bidding

TM+ bidding’s success largely depends on partnering with affiliates who are experienced, credible, and capable of representing your brand well. Since TM+ campaigns directly impact brand perception and search visibility, it’s crucial to work with affiliates who understand the strategy’s nuances and can handle the responsibility effectively.

Criteria for Selecting TM+ Bidding Partners

  1. Track Record: Choose affiliates with proven success in running TM+ campaigns. Look for evidence of high conversion rates, compliance with brand guidelines, and a history of working with reputable brands.

  2. Transparency: Affiliates should be willing to share insights into their strategy, performance metrics, and any adjustments they make. Transparent communication helps you stay informed and maintain control over your brand’s representation.

  3. Brand Alignment: Ensure your affiliates’ values and style align with your brand. This helps maintain consistency and avoids potential brand dilution, especially important for TM+ campaigns where your brand name is prominent.
Set Clear Rules and Boundaries
  • Keyword and Ad Restrictions: Define specific keywords or terms that affiliates are allowed to bid on and restrict the use of any terms you don’t want associated with your brand.
  • Brand Representation Guidelines: Outline acceptable language, visuals, and overall ad tone to ensure affiliates accurately represent your brand.
  • Commission Structure and Limitations: Specify commission rules, including whether TM+ sales qualify for standard or adjusted rates.
Monitor Compliance and Performance
  • Monitoring Tools: Use tools like The Search Monitor or BrandVerity to track affiliate bidding behavior, ad placements, and compliance with guidelines.
  • Analytics Integration: Regularly review affiliate performance metrics to ensure campaigns are meeting targets. Assess metrics such as click-through rates (CTR), conversion rates, and ROI.
Regular Communication and Performance Reviews
  • Scheduled Check-Ins: Hold regular meetings to review performance, discuss adjustments, and address any compliance concerns.
  • Performance Audits: Periodically audit affiliates’ campaigns to ensure they continue to align with your strategy and deliver expected results.
  • Feedback Loop: Encourage affiliates to share insights and ideas for optimizing campaigns, as they may have valuable firsthand data from search trends and user behavior.

Best Practices for TM+ Campaigns

Once you have the right affiliates on board, following best practices will help optimize campaign performance and minimize risks.

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Alex Goldberg

I’ve run profitable affiliate ad campaigns for a decade. AMA :)