Brand bidding competitors Google Ads is one of the most debated PPC strategies. This is mainly because many advertisers aren’t sure whether it’s legal, ethical, or allowed under Google’s trademark policies.
Yet, the practice continues to grow. In fact, brand keywords convert 2–3X higher than non-brand terms. That means competitors have a strong incentive to target branded searches and capture high-intent traffic that would otherwise go to you.
But knowing what’s acceptable, and what crosses a legal or policy boundary, is critical before launching a brand bidding strategy.
What Is Brand Bidding in Google Ads?
Brand bidding refers to running Google Search Ads targeting another company’s brand name, trademark, or branded search terms. For example, if you run a project management tool and bid on “Asana,” “Monday.com,” or “ClickUp pricing,” that would be considered brand bidding.
It’s important to distinguish between two completely different actions:
- Bidding on a competitor’s branded keyword (e.g., targeting “Nike running shoes” when you sell athletic footwear)
- Using a competitor’s trademarked name in your ad copy (e.g., writing: “Better Than Nike Shoes | 30% Off”)
These two actions carry very different rules. The first is generally allowed. The second can trigger a trademark violation.
Why do advertisers do it? Because branded keywords for paid ads usually represent high-intent users who have already shown interest in a specific product, competitor, or solution. Intercepting that search can increase visibility, disrupt a competitor’s funnel, and generate conversions quickly.
Is Brand Bidding Competitors Google Ads Legal?
Here’s the part that surprises many advertisers: Yes, brand bidding itself is legal in most countries, including the U.S.
Trademark law focuses on preventing consumer confusion and unauthorized commercial use and not keyword bidding. Courts have historically ruled that simply triggering ads based on a competitor’s trademark doesn’t violate trademark law as long as the ad doesn’t mislead consumers.
Key legal distinctions:
- Bidding on a competitor’s name is legal. Search engines classify it as fair competition.
- Using a competitor’s trademark in your ad copy without permission may be illegal because it can imply endorsement, affiliation, or confusion.
- Intent matters. Misleading ads or attempts to impersonate another brand can lead to legal action.
So while competitor keyword bidding is legal, that doesn’t automatically mean Google permits all forms of it. That’s where platform policy becomes crucial.
What Google Allows: A Breakdown of Google’s Official Trademark Policy
Google has one of the clearest stances in the PPC industry regarding trademark usage. Their policy draws a hard line between keyword targeting and ad text usage.
What You Can Do
- Bid on competitor trademarks as keywords. Google allows advertisers to target trademarked brand names, even without permission from the trademark owner.
- Run ads on competitors’ brand terms globally (with some exceptions) Most regions, including the U.S., Canada, and major Western markets, allow it.
- Use generic comparison language. Phrases like “compare project management tools” are permitted, as long as no trademark is used.
What You Cannot Do
- Use a competitor’s trademark in your ad headline or description unless you have authorization. If you try to include the exact competitor brand name in your visible ad copy, Google will likely restrict the ad.
- Use trademarked terms in a misleading way. Any ad text that implies affiliation, partnership, or endorsement is prohibited.
- Violate restricted-region trademark rules. Some countries have stricter policies about bidding on branded keywords.
How Google Handles Trademark Complaints
Trademark owners can submit complaints about unauthorized usage of their brand in ad text. If Google upholds the complaint, the offending ad is restricted—but the advertiser is still allowed to bid on the keyword.
Google reports that search ads can increase brand awareness by up to 80%. This highlights why brands defend their trademarked terms. Visibility is extremely valuable.
In simple terms, Google’s policy supports competitive advertising, as long as your ad copy doesn’t mislead users or directly use trademarked terms without permission.
Risks and Downsides of Competitor Brand Bidding
Even though competitor bidding is legal and mostly allowed, it does come with drawbacks:
1. Higher Cost-Per-Click (CPC)
Competitor brand keywords typically have lower Quality Scores because your ad is “less relevant” than the brand owner’s ads. This increases your CPC.
2. Lower Conversion Rates
Some users searching for a specific brand aren’t open to alternatives. This can waste ad spend.
3. Risk of Escalation
If you bid on their brand, competitors might retaliate and start bidding on yours, driving up your defense costs.
4. Trademark complaint issues
Even though bidding is legal, poor or misleading ad copy can trigger complaints or limitations.
5. Quality Score challenges
Ad relevance, expected CTR, and landing page experience may all suffer if your offer isn’t clearly differentiated.
When Competitor Brand Bidding Makes Sense
Brand bidding isn’t for every business, but it can work extremely well in these situations:
1. You’re entering a saturated market
Bidding on well-known competitors helps you reach users already in the research phase.
2. Your product solves a major competitor weakness
For example: faster load times, better pricing, or a missing feature.
3. You’re protecting market share
When competitors start bidding on your brand, responding helps preserve search visibility.
4. Your industry has high-intent branded searches
SaaS, legal services, healthcare, financial services, and e-commerce often benefit most.
5. You offer direct alternatives
“Looking for X? Try Y instead” strategies are common without using the competitor’s name in the ad copy.
How to Brand Bid Competitors Responsibly
Brand bidding requires careful execution to maintain compliance and avoid wasted spend. A Google ads agency like Sierra Exclusive often manages these campaigns because they demand strategic ad writing, keyword alignment, and strict adherence to Google’s trademark rules.
When done right, the approach can generate high-quality leads while minimizing risk. Here’s how you can do it:
1. Keep your ad copy value-based, not brand-based
Focus on your unique strengths instead of referencing your competitor.
2. Don’t use trademarked names in your ad text
Even variations or misspellings can be flagged.
3. Use strong ad extensions
Sitelinks, callouts, and structured snippets improve CTR and relevance, offsetting low Quality Scores.
4. Craft comparison-focused landing pages
You don’t need to say the competitor’s name in the ad, but you can mention them on the landing page if done appropriately (e.g., comparison pages).
5. Monitor CPCs and ROAS closely
Competitor bidding can get expensive quickly, so constant optimization is essential.
Should You Bid on Competitors’ Brand Terms?
The decision ultimately comes down to goals, budget, and competition:
Bidding makes sense when:
- You have a clear differentiator
- You can afford higher CPCs
- You’re targeting comparison shoppers
- Your competitors are already bidding on your brand
Avoid competitor bidding if:
- Your budget is limited
- You don’t have a strong value prop
- Your landing page doesn’t clearly support a switch
- CPCs exceed your average ROAS threshold
Brand bidding competitors Google Ads is both legal and allowed by Google, but it should never be your primary PPC strategy. It is most effective when used as a supplemental tactic that complements strong branded, non-branded, and competitor-conquesting campaigns.
Conclusion
Brand bidding competitors Google Ads is a fully legal and widely accepted practice—provided you follow Google’s rules. You can target competitor brand names as keywords, but you cannot use trademarked names in your ad copy unless you have explicit permission. With the right messaging, audience targeting, and landing page alignment, competitor brand bidding can help you capture high-intent traffic and differentiate your offer.
Not sure whether this strategy is right for your business? Sierra Exclusive, a paid ads agency in Sacramento, offers performance-driven PPC campaigns that balance compliance, cost efficiency, and aggressive market positioning.
If you want expert guidance on brand bidding or Google Ads strategy, our team can help you execute it responsibly and profitably. Give us a call or drop us a line to talk with our team.
Frequently Asked Questions
1. Can I legally bid on a competitor’s brand name in Google Ads?
Yes, it is legal to bid on a competitor’s brand name in Google Ads in most countries, including the U.S. Trademark law restricts misleading use of brand names in ad copy, not keyword targeting. As long as your ad doesn’t imply affiliation or use the trademarked name in the text, you’re within legal boundaries.
2. What are the risks of bidding on competitor brand terms?
Competitor terms usually have higher CPCs and lower Quality Scores, making them more expensive. They can also generate lower conversion rates because users often prefer the brand they searched for. Additionally, competitor bidding may trigger retaliation, increasing costs for both sides.
3. Is competitor brand bidding ethical or unfair?
It’s generally considered ethical and is widely accepted in digital advertising. Some brands view it as aggressive, but it’s allowed as long as ads aren’t misleading. Transparency and value-focused messaging help keep it fair.
4. Can I bid on misspellings of a competitor’s brand name?
Yes, you can bid on misspellings and close variants of a competitor’s brand name. Google treats them similarly to other keyword variations. Just ensure your ad copy remains compliant and doesn’t use trademarked terms.
5. Should new brands bid on established competitors?
New brands can benefit from bidding on well-known competitors because it provides fast visibility to high-intent searchers. However, the cost is usually higher, so it works best when the brand has a strong differentiator. It’s effective when used strategically, not as the main traffic driver.
6. Does competitor bidding lower CTR?
Yes, competitor bidding often results in lower CTR because users searching for a specific brand are less likely to click alternative ads. The lower relevance affects Quality Score as well. Strong, value-driven messaging can help improve engagement, but won’t fully overcome user intent.
