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Comments
You beat me to it. This is the worst change for brands that I have seen. Google is going toi hurt a lot of big brands and allowing people to ride on the tail of the brand is not fair.
I completely agree with you rishilakhani, we will have to carefully monitor the impact. However it will make it easy for PPC agencies to answer the age old question of "why should i bid on brand?"
Possible impacts in the UK: Escalated costs of brand keywords - from £0.05 to up to whatever the market bears. Results? Increase in google share prices. They have found a way to beat recession, thats for sure.
CTR will also decrease and the "dodgy" affiliates will appear to take advantage of the low CPC/high volume traffic. Affiliate Networks will have to build a more robust technology to track and enforce their clients trademark policies.