Why this debate keeps hurting brands
Branded traffic is warmer: better CVR, better ACOS. Generic traffic is colder: higher CPC, higher ACOS. If you optimize only for ACOS, you’ll over-invest in branded and starve growth.
The correct framing is a system: Defense (branded), Capture (high-intent generic), Expansion (mid/low-intent generic + competitor).
Measure it so it doesn’t lie
Separate campaigns and budgets for Branded / Generic / Competitor. Then classify search terms into branded vs non-branded at the search-term level.
Use TACOS as the main scoreboard for business health, and mix share to understand whether growth is real or just branded harvesting.
Starting-point budget splits (by maturity)
These aren’t rules. They’re guardrails. Your data will adjust them.
- Early-stage / launch: Branded 10–20%, Generic 60–80%, Competitor 10–20%
- Scaling: Branded 15–30%, Generic 50–70%, Competitor 10–20%
- Mature with strong demand: Branded 25–45%, Generic 40–60%, Competitor 5–15%
Simple structure that works
Then add negatives to prevent overlap, so you don’t pay twice.
- Branded Exact (split by product line if needed)
- Generic Exact “Winners” (scale)
- Generic Research (Broad/Phrase) + Auto (discover)
- Competitor ASIN targeting (tight list)
Summary
Branded protects and converts. Generic creates growth. Competitor steals share. Separate them, set expectations, and measure with TACOS + intent mix.