Netflix Enforces Brand Protection, But Lacks In Paid Search Strategy
The Online DVD Rental Empire Netflix.com has shown it's muscles by blocking anyone from bidding on their brand name. As you know, Google can only restrict the trademark in the Ad, but not the bidding on the keyword, but that has not stopped Netflix from enforcing this on their own. When you do a Google search on the keywords "net flix" or "Netflix" or any long-tail keyword phrase with the Netflix keyword in it, as well as misspellings of netflicks and I am sure it's not by accident.
As we are indulged in a financial recession right now, where companies are going out of business and a majority of stocks and personal portfolios have lost their value, there is one stock that has actually risen, and that stock in Netflix. Why is this important in Paid Search? Well, for starters it acts as a barometer of our online and offline behaviors. For example, as the online DVD rental business appears to be very lucrative right now as more and more people appear to be ordering their movies online, instead of driving and renting them in the stores. Ironically, Blockbuster which also protects their trademark online, is being pummeled in the market right now as their stock price currently is 0.17 cents. To reinforce this debate, here is great article from CNBC entitled "What Do Blockbuster's Troubles Mean For Netflix?"
Stock Chart for NetFlix
Dissecting the DVD rental Industry Paid Search Strategy:
Considering the fact that I am just doing different types of searches on Google, Netflix has shown the most volume in terms of overall coverage, (which is a bad thing in general considering it's not impressive at all). However there are easily identifiable holes in their PPC strategy. On the one hand, they are earning their Google Fridge by bidding on the keyword DVD, (which is a very vague and has many different intents). On the other hand, they are missing an entire audience who search for ''movies" because they are nowhere to be seen. If you reverse the search term to "online movies", Netflix's Ad does show. I am also noticing that they are not bidding of specific movie titles, actors, or anything else TV/Movie entertainment related. Again, another opportunity to reach multiple generations of customers.
The point I am trying to make is that I would of expected a lot more from either the search agency in charge of the Paid Search for Netflix, or Netflix themselves for not taking advantage of this. Remember, this is an Online Business which is flourishing right now when everyone else is closing shop. They need to be exposing themselves more effectively in Google and the other engines.
In Conclusion:
So, it is safe to say that the online DVD rental market is taking full advantage of the Google Trademark policy on the Ads and is enforcing the bidding of their names "in-house". You also have a shift in the market where the long time king of Movie rentals Blockbuster is now on the verge of disappearing off the face of the earth and Netflix, which does not even have a "brick and morter" retail store is emerging as one of the rarest "diamonds in the rough". From a Paid Search marketers perspective, this is the best time for an emerging competitor to "piggyback" off the Netflix name to drive traffic with relatively high conversion rate potential, but as you can see, no one is daring enough to act on it. Perhaps, Blockbuster should be the first, if they can afford it now.
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