If you have ever wondered why advertisers ask that you do not bid on their brand name there are multiple reasons. If you bid using Pay Per Click (PPC) advertising on search engines you may have seen a message like this:
We have seen a lot of publishers bidding on our brand name. If you are bidding on our brand name or any variation of it please pause your campaign immediately! From now on we will strictly enforce our terms. To prevent any discomfort please make sure you are not violating our program terms.
There may be many reasons why they prefer you do not bid on their brand name and one is due to it being a Trademark. As an owner of a trademark you do not want others using that trademark. You need to control the usage of the mark and assure that no one is trying to profit from your good will and the value you have created around that mark. The owner of the mark prefers that they, and they alone, control the advertisements that appear when their mark is searched for. This allows them to control the advertisements and the pages that are shown after an advertisement is clicked. The owner of the mark does not want their mark to be diluted or seen in a negative light for any reason. Allowing many affiliates to bid on their name and present websites as if it is the owner of the marks site, takes away the control of the content from the mark owner.
When it comes to certain services such as search engine marketing or search engine optimization you may want to consider leaving these tasks to those that specialize in the particular field. For the optimization read here about how others not only specialize but also do not charge you unless they are successful.
I have received questions about the bidding of brand names and why advertisers care, hopefully this explains it.