…and so will legal challenges, many of which are already underway.
Details: Google will now allow advertisers to bid on trademark terms, even if they don’t own the trademark, so, for example, a local hardware store can bid on “Buy Makita Saws here” or Best Buy could bid on “Best Prices for Sony Plasmas”.
Also, Google has opened up bidding on trademarked terms – so that competitors can bid on their rival’s terms. It has been allowed in just four countries – US, UK, Canada, Ireland – but now will be allowed in 190.
Both moves mean more revenue for Google. Of course, the company says it’s doing this “in an effort to improve ad quality and user experience.” Which in fact, is true.
But…it also can be read as a sign that the company is doing what all large companies do: fine tuning its profit machine to yield more revenue.
One analyst, Ben Schacter at Broadpoint, put it this way in an email flash note sent out to press and clients:
The bottom line is that these two changes will be positive revenue drivers when allowed and into 3Q and beyond, however, we believe trademark holders will undoubtedly, and loudly, raise legal challenges.