If you’re running paid search campaigns, you’ve probably wondered at some point: can I use competitor brand keywords in Google Ads?
It’s a common question for advertisers trying to increase visibility, capture market share, or disrupt competitors. And the short answer is yes, Google allows it. But that doesn’t mean you should approach it without a strategy or understanding the limits. Competitor bidding can boost your exposure, but it also comes with legal boundaries, higher costs, and performance risks.
In fact, research shows that brands bidding on competitor keywords often experience up to 50% lower click-through rates compared to their branded terms.
Before you start building conquest campaigns, it’s important to understand Google’s policies, the pros and cons, and best practices to ensure your budget is spent wisely.
RELATED: What are Sitelinks in Google Ads?
Is It Legal to Bid on Competitor Brand Keywords in Google Ads?
Let’s start with the big concern most marketers have: legality.
Google does allow advertisers to bid on competitor brand names as keywords. That means if users search for a competitor’s brand, your ad can appear beside or above their results. This practice – known as competitor keyword bidding or brand conquesting – is widely used across competitive industries like SaaS, insurance, e-commerce, and home services.
However, there’s an important restriction:
You cannot use a competitor’s trademarked brand name in your ad copy unless you have authorization.
That means:
- You can bid on “Nike running shoes” as a keyword.
- You cannot write “A better Nike running shoe alternative” in your ad text unless Nike approves it.
If a competitor files a trademark complaint, Google may restrict or remove ads that violate usage guidelines. Google’s stance is clear: trademarks can be keywords, but not necessarily ad text.
In short: bidding = allowed; using competitor names in your ads = usually not allowed.
Why Brands Bid on Competitor Keywords
If competitor bidding is more expensive and sometimes less effective, why do brands use this strategy at all? Because when done correctly, it can open the door to high-intent traffic from users already in the market for what you sell.
1. Capture users already looking for a solution like yours.
When someone searches for your competitor by name, they’ve shown category intent like shopping or researching. This will give you an opportunity to intercept them with a compelling alternative.
2. Increase visibility in competitive markets.
For industries with heavy competition, conquesting can be a visibility tool. Even if the user doesn’t click, simply appearing in the results can boost awareness.
3. Leverage lower-funnel interest.
Competitor searches often signal users who are close to making a decision. If your offer is strong, this can drive conversions.
4. Competitors are likely bidding on you, too.
In a study of PPC strategies across major brands, over 40% of companies reported bidding on their competitors’ terms. That means defensive and competitive bidding is common and possibly already aimed at your brand.
5. It can be strategic during launches or aggressive growth phases.
When entering new markets, conquest campaigns help you quickly appear where your target audience already is like searching for familiar brands.
Risks and Downsides of Competitor Keyword Bidding
Even though Google allows it, competitor keyword bidding isn’t always a straightforward win. There are notable drawbacks that advertisers should understand before investing heavily.
1. Higher CPCs
Google’s Quality Score algorithm favors relevance. When users search for your competitor’s name but see your brand in the ad, relevance drops.
Lower Quality Score → Higher CPC. Some industries report CPCs 2–3x higher on competitor campaigns compared to their own branded terms.
2. Lower CTRs
Just because your ad can show doesn’t mean users want to click it. Many users specifically intend to find the brand they typed, so competitor ads often produce lower CTRs. This can further hurt Quality Score and raise costs.
3. Potential bidding wars
If you target their brand, they may retaliate by bidding on yours. The result? Higher CPCs for everyone. Large brands with deep budgets can especially push smaller competitors into uncomfortable cost territory.
4. Lower conversion efficiency
Traffic from competitor terms can convert, but usually at a higher cost per acquisition compared to category or branded keywords. If budgets are tight, this may not be the best allocation.
5. Reputation considerations
Some brands feel competitor bidding is overly aggressive or disruptive. This isn’t a performance issue, but it can be a brand-to-brand relationship concern in small industries.
Best Practices for Using Competitor Brand Keywords the Right Way
If you choose to run competitor keyword campaigns, following best practices will help improve ROI and minimize waste.
1. Follow Google’s trademark rules
Never use a competitor’s trademarked name in your:
- Headlines
- Descriptions
- Display paths
- Extensions
Use differentiation without violating trademark guidelines.
2. Build landing pages that match user intent
Sending competitor-search traffic to a generic homepage will typically perform poorly. Instead, create pages such as:
- “Compare [Your Brand] vs. Competitor X”
- “Why People Switch From Competitor X to [Your Brand]”
- “Best Alternatives to Competitor X”
These pages convert significantly better because they align with the user’s search intent.
3. Highlight your strongest differentiators
When intercepting users already considering another brand, you need to be compelling. Emphasize:
- Better price
- Better features
- Better service
- Faster onboarding
- Stronger support
- Clear benefits for switching
4. Use Exact Match or Phrase Match for cost control
Broad Match on competitor keywords often wastes money. Keep targeting specific to avoid irrelevant or expensive queries.
5. Monitor Auction Insights frequently
Auction Insights will show whether your competitors respond by bidding on your brand. If your branded CPCs spike, you may need to adjust your strategy.
6. Set bid caps
Don’t allow automated bidding strategies to overspend on competitor terms without limits. Manual CPC or Target CPA/ROAS with bid caps can help prevent runaway costs.
7. Test your messaging relentlessly
A small tweak in value proposition like “Better pricing,” “More features,” or “Top-rated alternative” can dramatically influence performance.
8. Evaluate profitability often
Competitor campaigns require more strategic maintenance than standard search campaigns. Regularly review CPA, ROAS, CTR, and CPC to determine whether they’re still performing.
When You Should Not Bid on Competitor Keywords
Competitor bidding is not the right fit for every advertiser. Avoid or pause these campaigns when:
1. Your budget is limited
If every dollar counts, prioritize branded and high-intent non-brand search before conquesting.
2. Your product is still maturing
If your offering isn’t strong enough to compete head-to-head with established brands, conversion rates will be low and CPCs high.
3. Your Quality Score is extremely low
If your ads consistently underperform for competitor terms, you may be paying too high a premium.
4. You want to avoid competitive retaliation
In small or niche industries, pushing a competitor can lead to both sides wasting budget in a bidding war.
Should You Use Competitor Keywords? A Strategic Recommendation
While competitor keyword bidding can be powerful, it should be used strategically, not just because it’s allowed.
Competitor keyword bidding works well when:
- Your brand has strong differentiators
- You’re in a high-competition category
- You have the budget for testing
- You’ve built landing pages tailored to comparison or alternatives
- You need to enter a new market quickly
It doesn’t work well when:
- Your budget is tight
- You rely heavily on efficiency
- You can’t compete with your rival’s reputation or features
- CPCs spike and Quality Score remains low
The best approach is to treat competitor campaigns as a deliberate layer, not a foundation, of your overall Google Ads strategy.
Conclusion
So, can you use competitor brand keywords in Google Ads? Absolutely, Google allows it, and many advertisers use it to gain visibility, attract high-intent users, and challenge their competition. But success depends on a careful strategy.
Because costs are higher and performance can vary, it’s important to build comparison-focused landing pages, test your messaging, monitor Auction Insights, and review ROI consistently.
When used thoughtfully, competitor keyword bidding can complement your broader PPC strategy. When used without planning, it can drain your budget quickly. Approach it with clarity, evaluate results often, and adjust based on performance and not just competitive instinct.
Want to Run Competitor Campaigns Without Wasting Budget? Sierra Exclusive Can Help
Competitor keyword bidding is one of the trickiest parts of Google Ads. When done wrong, it drains budget fast. When done right, it helps you capture high-intent customers from brands already dominating your space.
At Sierra Exclusive, our Google Ads agency specialists build data-backed strategies that help businesses:
- Identify the right competitor terms
- Create high-performing “alternative” or “comparison” landing pages
- Manage CPCs and Quality Score to avoid overspending
- Monitor Auction Insights to stay ahead of competitors
- Track ROI and optimize your funnel end-to-end
If you want to test competitor keyword strategies with expert-level precision, Sierra Exclusive can help you execute it profitably and compliantly. Reach out to our team today to build your competitor strategy.
Frequently Asked Questions
What are the potential risks or downsides of bidding on competitor brand terms?
Bidding on competitor terms often results in higher CPCs due to low relevance and Quality Score. CTR and conversion rates are typically lower because users originally intended to find a different brand. It can also trigger competitive retaliation, increasing costs for both sides.
How can I run competitor keyword campaigns safely and compliantly?
Follow Google’s trademark rules by never using a competitor’s brand name in your ad copy. Use Exact or Phrase Match for tighter control and send traffic to comparison or alternative-focused landing pages. Monitor Auction Insights and performance metrics frequently to prevent overspending.
When should I avoid bidding on competitor brand keywords?
Avoid competitor campaigns when your budget is limited and performance efficiency is a priority. Skip them if your product isn’t strong enough to compete head-on or if CPCs spike without yielding conversions. You should also avoid them if you want to prevent a bidding war with competitors.
Does Google allow trademarked brand names as keywords?
Yes, Google allows advertisers to bid on trademarked brand names as keywords. What’s restricted is using trademarked names in the ad text unless you have authorization. So, bidding is permitted, but ad copy usage is not.
Are competitor brand terms more expensive?
Yes, competitor keywords almost always cost more due to low expected relevance and Quality Score. Because users didn’t search for your brand, CTR is lower, which further increases CPCs. These factors make competitor terms some of the most expensive keywords in Google Ads.
Is CTR lower on competitor ads?
Yes, CTR is typically lower because users are intentionally searching for a specific brand and not alternatives. Lower CTR signals lower relevance, which can also lower Quality Score. This often results in higher CPCs and weaker ad performance overall.
