I don't know if this shock is in good faith, but it is very naive for a founder of a SaaS to not be aware of such marketing strategies - brand PPC campaigns are basic.
On a side note, I've often wondered how much money Google must make from people paying to fill up the ad slots for keywords which are their company name and they already rank in position 1 for. "If you don't bid for them, then your competitor might - so give us your money".
I’ve run plenty of brand campaigns and the clicks tend to be an order of magnitude cheaper than running keywords on competitors keywords.
My experience typically lies with local companies though.
I see ~30%.
And again, this is only for local service businesses.
Is this your direct experience? In my campaigns it's typical for me to see 5% CTR for the keywords I target and then a ~30% CTR for branded terms (depending on the brand name)
Branded clicks are more than 6x cheaper than non branded so the CPM is still lower.
Again, that at least has been my experience. And regarding the "would have been free" argument, I've gone back and forth and have seen better results with branded campaigns than not having them on. But I've seen accounts where that was not true.
But I don't think we should ban this sort of thing, though it's a bit of a toss-up when it comes to how it may promote competition. It allows new competitors to come in and compete with established brands. But, it also allows deep-pocketed incumbents take customers away from smaller companies.
It's similar to the argument that political ads should be allowed on Facebook because it is an effective way for fresh candidates to challenge incumbents. It can also be a way for incumbents to drown out challengers with their warchest.
We'll never really know.
My takeaway from this story isn't nearly what Andrew believes his is. What I see is he was so tunnel visioned on trying to crush Asana and be not only the market leader but only option that he neglected his customers needs and wants until they just bailed on Flow for alternative products.
Death by a million papercuts, sure, but mostly from his own errors.