Asda chief wades into row over Google keywords

by Jemima Bokaie Marketing 07-May-08, 09:00

LONDON - Asda has hit out at rival Tesco over its decision to not bid on Google keywords relating to its competitors (Marketing, 30 April).

Rick Bendel, marketing director at Asda, said: 'Tesco believes everything is for sale, except when it doesn't suit it.' He refused to rule out bidding on search terms relating to rivals, including Sainsbury's and Morrisons.

From this week, Google's paid-search strategy will allow advertisers to bid for rivals' branded trademarked keywords.

The change has prompted a considerable backlash. Travel trade body ABTA is seeking legal advice, while Eurostar has called on its travel partners not to bid on its trademarked search terms.

Moneysupermarket.com, the financial services price-comparison site, has appealed to UK insurance companies to refrain from bidding on keywords relating to itself and its sister brands, insuresupermarket.com and travelsupermarket.com.

Lastminute.com chief executive Ian McCaig has threatened legal action over Google's decision, claiming it would cost his company millions of pounds a year to protect its brand.

Other businesses considering legal action include the Guardian Media Group/Apax-owned Auto Trader group.

Comments

Gellan Watt - 07/05/2008

It's a case of money over morals here, for a brand that I truly respect - but I question their judgement over this. It just feels a little bit tasteless, when they, the market leader, could also be leading the way on standards for online advertising, rather than capitalising in this way. Sure it's a way of generating massive income for them... but not loyalty.

nicky noble - 07/05/2008

Personally i think advertisers buying keywords relating to competitors seems nonsensical. Google might think they are being clever, but as a consumer you are going to get pretty fed up of trying to search for something specific and then for something completely different to keep appearing. I will most certainly go and use a more useful and accrute search engine!

Paul Hudson - 08/05/2008

There isn't a more useful and accurate search engine. That is the source of the problem. I don't personally have a strong opinion on this matter either way. But Google does have an increasing tendency to test the boundaries of their 'Don't be evil' policy :) Google has already made this change of policy in the US. By all accounts companies initially voiced the same concerns as Tesco's. Google's official line is that advertisers got used to the idea... really? For all their integrity and diligence in developing their natural search results. They can tend to become a doormat to the investors when it comes to their revenue generators. This is great news for smaller businesses but bad news for the big names, as Rick Bendel points to.