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Google Ads Competitor Keyword Bidding Explained

by | Jun 19, 2025

You type your brand name into Google… and your competitor appears at the top.

Not your homepage. Not your latest offer. Their ad is on your branded search term.

Now you’re wondering: “Can I turn the tables and bid on their brand name, too?”

Welcome to one of the most controversial (and influential) strategies in Google Ads: competitor keyword bidding.

It’s aggressive. It’s clever. And if done wrong, it can get you flagged, disapproved, or even legally challenged.

But here’s the thing: Used strategically, bidding on competitor brand keywords can unlock high-intent traffic, steal market share, and put your business directly in front of ready-to-convert buyers.

In this guide, we’ll answer the big question, can I use competitor brand keywords in Google Ads?, and go far beyond it. You’ll learn:

  • What Google allows (and what it doesn’t)
  • The legal and ethical risks most advertisers overlook
  • Clever, compliant ways to run competitor-focused campaigns
  • Real-world examples of brands doing it right, and wrong

If you’re ready to explore one of the boldest moves in paid search, let’s get into it, legally, tactically, and competitively.

Competitor Keywords in Google Ads

What Are Competitor Brand Keywords?

Competitor brand keywords are search terms that include the brand name, product name, or trademarked business terms other than your own.

Think of them as digital real estate your competitor built, but you’re trying to show up on.

Here are a few examples:

Competitor Brand Keyword Your Ad Targeting It
Monday.com project management “Try ClickUp – The Smarter Alternative”
Nike running shoes “Adidas Ultraboost – Shop Now”
Salesforce CRM pricing “See Why 10,000+ Teams Prefer HubSpot”

You’re not just bidding on a keyword, you’re stepping directly into the search journey of someone already considering another brand.

Types of Competitor Keyword Use

There are two common ways advertisers use competitor keywords in Google Ads:

1. Bidding on Competitor Brand Terms

You target competitor names as keywords in your campaign, like:

  • asana alternative
  • freshbooks pricing
  • quickbooks competitor

Google allows this (with caveats), and the brand name does not appear in your ad copy, just in the search query. Using our PPC Marketing Services can help you execute competitor targeting campaigns while staying compliant.

2. Using Competitor Names in Your Ad Copy

This is where things get risky. Unless you’re:

  • An authorized reseller, or
  • Running a legally approved comparison site,

Using another brand’s trademark in your ad headline, description, or display URL can violate Google’s trademark policy and local trademark laws.

Why Use Competitor Brand Keywords?

Simple: They bring users who are already deep in the buying journey. If someone is searching for a specific product like “Slack for Enterprise,” you know they’re not just browsing—they’re looking to act. That’s what makes these keywords so powerful and competitive.

But are they legal? Are they ethical? And will Google even let your ad run?

Let’s break that down next.

Here’s the short answer:

Yes, bidding on competitor brand keywords is generally legal, but with significant limitations.

Now the long answer (the one that keeps lawyers and marketers up at night): While bidding on a competitor’s brand name as a keyword is usually permitted, using their name in your ad text can trigger trademark violations and legal headaches.

Let’s unpack the legal and platform-level rules you need to know.

Google’s Stance: Bidding Is Allowed, Misuse Is Not

Google lets advertisers bid on trademarked brand names, even if those names belong to competitors.

So yes, you can bid on keywords like:

  • Salesforce CRM
  • Shopify store builder
  • Zoom alternatives

But Google does not allow you to use trademarked terms in your ad copy unless you meet one of these criteria:

  • You’re an authorized reseller of the product
  • You operate an informational or review site
  • You’ve received explicit trademark approval

Examples of What’s NOT Allowed

  • “Better than Salesforce” – if you’re not an authorized partner
  • “Shopify alternatives – cheaper than Shopify!” – if you use “Shopify” in the ad copy without permission
  • Using competitor names in headlines or display URLs

Even if the ad runs, it may get flagged, restricted, or reported by the trademark owner.

What About the Law?

Trademark laws can extend beyond Google’s policies depending on your country or region.

  • Bidding on competitor names is legal in the U.S. as long as it doesn’t cause consumer confusion.
  • In the EU and other regions, laws may be stricter.

Courts have ruled both for and against advertisers using competitor brand terms, depending on:

  • Whether the usage was misleading
  • Whether it implied a false association
  • Whether it diverted traffic unfairly

Understanding and navigating these laws may be easier with professional assistance, our Outsource CMO service helps clients develop compliant yet competitive advertising strategies.

Real Risk: Trademark Complaints

If a competitor files a trademark complaint, Google may:

  • Disapprove your ad
  • Restrict the use of specific keywords.
  • Suspend parts of your account in repeat cases.

Trademark owners can also sue outside of Google, especially if they believe your ads are deceptive or damaging.

What You Can Do Safely

  • Bid on competitor brand names as keywords (without using them in ad copy)
  • Create comparison pages (e.g., “Monday vs ClickUp”)—but keep ad text generic.
  • Focus on highlighting your strengths, not directly referencing theirs.

Competitor Brand Keywords

If you’re thinking about using competitor brand keywords in your Google Ads campaigns, it’s critical to understand how Google enforces trademark use. While bidding on competitor names is generally allowed, using those names in your ad copy is where most advertisers slip up.

Google’s Official Trademark Policy: The Breakdown

Google separates trademark usage into two parts:

  • Where the trademark appears (keywords vs. ad copy)
  • How the advertiser is using it (authorized or not)

Here’s what Google allows:

Usage Allowed? Notes
Bidding on competitor brand names  Yes You can target competitor names as keywords
Using a competitor brand name in an ad  No Only if you’re authorized or meet exception criteria
Using the brand in the display URL  No Considered deceptive if you’re not affiliated
Using a trademark for comparisons  Conditional Only in landing page content—not directly in ads unless you’re authorized

You Can Use Trademarks If You’re:

  • An authorized reseller of the product or service
  • Running a review site, an informational site, or a comparison page
  • The owner or licensee of the trademark
  • A Google-certified partner with approved brand use

In these cases, Google might grant you a whitelist exception after verification.

Violating the Policy Can Lead To:

  • Disapproved ads
  • Limited ad impressions (low-quality score due to policy flags)
  • Trademark complaints from the owner
  • Account warnings or restrictions in repeat cases

Google’s Trademark Complaint Process

Trademark owners can submit a formal complaint using Google’s Trademark Complaint Form. Once filed, Google may:

  • Investigate the use of the term in question
  • Restrict its use in ads across accounts (not just yours)
  • Flag unauthorized advertisers from using the brand in ad text.

Avoid unnecessary trademark issues by utilizing Enterprise PPC Marketing solutions that prioritize performance and policy compliance.

Bottom Line:

Google doesn’t police your keywords, but it polices your ad copy.

If you want to bid on competitor brand names, stay safe by:

  • Keeping your ad creative generic
  • Avoiding brand names in headlines or descriptions
  • Letting your landing page do the competitive comparison work

Strategic Benefits of Competitor Keyword Bidding

If you’re wondering why so many advertisers risk bidding on competitor brand names, even with the legal gray areas and policy risks, the answer is simple:

When done right, it works.

Bidding on competitor keywords can give your brand a serious edge by capturing high-intent traffic from users already in buying mode. You’re not guessing who your audience is—they’re telling you, with every branded search, precisely what they’re looking for.

Here’s why this strategy can be a smart move.

1. Capture Buyers at the Bottom of the Funnel

People searching for your competitor’s brand aren’t just browsing—they’re close to converting.

By showing up when they search “Monday.com pricing” or “Grammarly premium,” you’re intercepting high-intent traffic that’s actively comparing options. If your offer is firm, you can:

  • Steal the click
  • Win the sale
  • Earn a long-term customer.

This is where Conversion Rate Optimization tactics on your landing page become your secret weapon.

2. Challenge Bigger Brands (Even with a Smaller Budget)

Competitor keyword bidding levels the playing field. If you’re a startup going up against enterprise giants, this strategy lets you:

  • Show up alongside major players
  • Build brand awareness
  • Offer a sharper value proposition, faster trial, or more transparent pricing

You may not beat them on brand recognition, but you can beat them on relevance and speed.

3. Push Comparison and Differentiation

Using competitor searches as an entry point, you can craft landing pages that highlight your advantages:

  • Features your competitor lacks
  • Better pricing or flexibility
  • More responsive support
  • Specific use-case benefits

This allows users to explore alternatives and positions you as a worthy competitor, not a copycat.

Competitor bidding is like borrowing traffic you need to earn the click with relevance, ethics, and a superior offer. Otherwise, you’re just burning budget.

Bonus: Your Competitor Might Be Doing It Already

Still unsure? Search your brand on Google. If you see a rival’s ad, congratulations, you’re in the game whether you like it or not.

The question is, you should respond. It’s how you can respond smarter.

Next: before launching your competitor campaign, let’s talk risks.

Google Ads Policy

Potential Risks and Downsides

While bidding on competitor brand keywords can unlock high-intent traffic and visibility, it’s not without risks. This strategy distinguishes between clever marketing and brand damage control, and crossing that line can cost you.

Before you jump in, here are the significant downsides to consider:

1. Legal Trouble (Yes, It Happens)

Even if Google allows keyword bidding, your competitor might not.

If they believe your ad is misleading, includes unauthorized trademark use, or violates local advertising laws, they can:

  • File a trademark complaint with Google
  • Send a cease and desist letter.
  • Pursue legal action under trademark or unfair competition laws.

Especially in countries with stricter IP enforcement, this could lead to costly disputes or forced ad takedowns. 

To mitigate legal risks while staying aggressive with your strategy, consider outsourcing your campaigns to our Programmatic Advertising team, which ensures your tactics align with platform and legal standards.

2. Ad Disapprovals and Limited Reach

Google’s ad text and trademark use policies are enforced algorithmically and by manual review. Even if your keywords are clean:

  • Ads may get disapproved
  • Your reach may be throttled if you’re close to the policy edge.
  • You may receive repeated warnings that affect account health.

3. Poor Quality Score and Higher CPCs

Google notices when you bid on competitor keywords without delivering a relevant experience. Low click-through rates, mismatched landing pages, or irrelevant ad copy will hurt:

  • Your Quality Score
  • Your ad rank
  • And ultimately, your cost-per-click

Competitor traffic is often colder than it seems, especially if your offer isn’t different or better.

4. Low Conversion Rates = Wasted Budget

Not all traffic is good traffic.

Many users searching for a specific brand are loyal customers, not comparison shoppers. If you lure them in with vague promises, they may:

  • Bounce instantly
  • Never convert
  • Drive up your cost per acquisition (CPA)

Unless your landing page is perfectly crafted, you risk paying for attention you can’t monetize.

5. Brand Reputation Risks

Competitor bidding can backfire if your audience sees it as:

  • Aggressive
  • Desperate
  • Misleading

Worse, your competitor might retaliate—and suddenly you’re locked in a bidding war that inflates CPCs for both of you.

Competitor bidding is like borrowing traffic you need to earn the click with relevance, ethics, and a superior offer. Otherwise, you’re just burning budget.

Smart & Ethical Ways to Use Competitor Keywords

Bidding on competitor brand terms can be bold, but it doesn’t have to be reckless. When approached with strategy, creativity, and compliance in mind, you can ethically leverage competitor searches to grow your business without risking your ad account or reputation.

Here’s how to do it the right way.

1. Create “Alternative To [Competitor]” Campaigns

Rather than trying to steal traffic, position your product as a viable alternative.

Example ad copy:

  • “Tired of [Brand]? See Why Businesses Switch to Us.”
  • “Looking for a [Competitor] Alternative? Try [Your Brand] Free.”

You’re not claiming to be them, you’re offering users a clear choice. And this framing aligns well with user intent on comparison-related searches. Need help crafting these offers? Our Copywriting Services can help you produce compelling, compliant ad copy that converts.

2. Focus on Your Strengths, Not Their Flaws

Avoid unfavourable comparisons or direct attacks. Instead, highlight what you do better:

  • Lower pricing or more flexible plans
  • Simpler onboarding
  • Superior customer support
  • Niche features your competitor doesn’t offer

This turns the focus toward your value, not their weaknesses, keeping your messaging positive and persuasive.

3. Build Dedicated Comparison Landing Pages

If someone is searching for your competitor, meet them where they are, with a page that compares both options clearly and fairly.

Use headlines like:

  • “[Your Brand] vs [Competitor] – Which One’s Right for You?”
  • “Switch from [Competitor] in Minutes – Here’s How”

Make sure to:

  • Use factual, side-by-side comparisons
  • Include disclaimers if necessary.
  • Avoid trademark use in misleading or unauthorized ways.

For landing pages built to convert, our Web Design and Development service ensures your comparison content loads fast, stays mobile-optimized, and delivers results.

4. Keep Ad Copy Compliant

This is non-negotiable: do not use competitor brand names in your ad headlines or descriptions unless authorized.

Instead, use phrases like:

  • “Compare Top Tools for [Industry]”
  • “Rated Higher Than Other [Software Type] Platforms”
  • “Switching from Your Current CRM? Try [Your Brand] Today”

This keeps you compliant while still appealing to brand-aware users.

5. Monitor Performance & Feedback Closely

Ethical doesn’t mean immune to risk.

Keep an eye on:

  • Click-through rates
  • Bounce rates
  • User feedback (Did users expect something else?)
  • Legal complaints or policy warnings

If something feels off, adjust fast, before it affects your campaign health or brand image.

If you want to win competitor traffic ethically, don’t impersonate; differentiate. Position your brand as the smarter, more tailored, or more affordable alternative—and let users decide.

Ongoing campaign performance tracking is made easier with our Lead Generation Services which include regular optimization and conversion quality monitoring.

Competitor Keyword Analysis

How to Run a Competitor Bidding Campaign Effectively?

Bidding on competitor brand keywords isn’t just about flipping a switch and hoping for clicks, it’s a strategy that needs precision. To do it right (and legally), you’ll need solid keyword research, smart copywriting, strong landing pages, and ongoing performance monitoring.

Here’s how to build a high-performing competitor campaign from the ground up.

1. Research the Right Competitor Keywords

Start by identifying:

  • Your direct competitors (similar products/services)
  • Brand variations people search for
  • Long-tail competitor terms (e.g., “ClickFunnels pricing” or “Asana vs Trello”)

Use tools like:

  • Google Keyword Planner – to find search volume and CPC estimates
  • SEMrush / Ahrefs / SpyFu – to see what competitor terms other advertisers are targeting
  • Google’s Auction Insights – to discover who’s bidding on your brand

Look for:

  • Keywords with enough volume
  • Reasonable CPCs
  • High commercial intent (e.g., “alternative to [brand]”)

2. Write Compliant, Value-Focused Ad Copy

Your ad must:

  • Avoid direct use of trademarked names
  • Clearly state your value proposition
  • Encourage comparison or curiosity.

Examples of safe, compelling headlines:

  • “Looking for a CRM That’s Easier Than Most?”
  • “Your Next Project Management Tool Is Here”
  • “Switch Today – No Migration Fees”

Add ad extensions (like sitelinks, callouts, and structured snippets) to increase visibility and real estate.

3. Build a High-Converting Comparison Landing Page

Don’t send competitor traffic to your homepage.

Instead:

  • Create a dedicated competitor comparison page
  • Highlight what you offer that they don’t
  • Use clear tables or side-by-side features.
  • Include CTAs like “See the Difference” or “Start Free Trial”

Avoid using the competitor’s name in the URL or overly aggressive headlines, keep it factual and fair.

4. Monitor Campaign Performance Closely

Track metrics that tell the real story:

  • CTR – Are users engaging with your ad?
  • Conversion rate – Are they taking action after the click?
  • Bounce rate / Time on page – Are they finding relevant info?
  • CPC and ROAS – Are you earning more than you spend?

Also, monitor Quality Score. A low score on competitor keywords may suggest that your ad or landing page isn’t relevant enough or is subtly violating policy.

5. Test & Iterate

Don’t expect perfection out of the gate. Test:

  • Different headline variations
  • Alternative landing pages (direct vs comparison)
  • Different keyword match types (exact, phrase)
  • Audience layering (e.g., only target competitor searchers in-market for your category)

Competitor campaigns require more finesse than standard campaigns, but when dialled in, they can become one of your most efficient acquisition engines.

Alternatives to Competitor Keyword Bidding

Not every brand is ready to walk the fine line of bidding on competitor brand names. Whether you’re concerned about legal risk, brand reputation, or just want to diversify your strategy, there are plenty of alternative (and sometimes more sustainable) ways to win high-intent traffic, without sparking a keyword war.

Let’s explore the best options.

1. Dominate Category and Comparison Keywords

Instead of targeting a competitor’s name directly, target category-level or intent-driven keywords like:

  • “Best CRM for small businesses”
  • “Top email marketing platforms 2025”
  • “Affordable video editing software”

These searchers are already in evaluation mode, giving you a perfect chance to show up in a neutral, non-branded context.

Why it works:

  • Higher conversion intent
  • Lower legal risk
  • Still attracts competitor-aware audiences.

These searchers are already in evaluation mode, giving you a perfect chance to show up in a neutral, non-branded context. Use Search Engine Marketing to capture this demand and convert interest into traffic.

2. Create Comparison Content (SEO + Paid)

Invest in organic and paid search strategies that educate users by comparing tools.

Create high-quality blog posts and landing pages like:

  • “ClickUp vs Trello: Which Project Manager Is Better for Teams?”
  • “HubSpot Alternatives Compared: Which CRM Should You Choose?”
  • “Why [Your Brand] vs [Competitor] Comes Down to This One Feature”

You can:

  • Rank them organically (long-term value)
  • Promote them through paid search using non-branded queries.
  • Retarget users who visit them with display or YouTube ads

3. Launch Competitor-Based Display or YouTube Campaigns

Instead of search ads, use custom intent audiences to target people who have shown interest in your competitors.

In Google Ads:

  • Create a Custom Segment based on competitor brand searches, websites, or YouTube channels
  • Serve display or video ads that highlight your value.

Bonus: You avoid the bidding war on expensive branded search terms.

4. Build a Brand So Strong, They Bid on You

Competitor bidding only matters if you’re not owning your brand terms.

Focus on:

  • Improving your brand search share
  • Optimizing your branded campaigns (1st position, substantial CTR)
  • Investing in content, social proof, and reviews to turn your brand into a category default

A strong brand doesn’t chase traffic, it attracts it.

Competitor keyword bidding is just one play in the playbook. Brands that win over time combine strategic paid search with Search Engine Optimization, content, and strong positioning.

Final Thoughts

Bidding on competitor brand keywords in Google Ads is bold, powerful, and risky if done wrong.

Yes, it’s legal to bid on competitor names. No, it’s not legal (or smart) to use their trademark in your ad copy without authorization.

That leaves you with a choice:

  • Play smart by targeting competitor keywords with ethical, compliant messaging
  • Or play safe by focusing on high-intent category keywords and brand-building strategies that deliver long-term results.

Here’s the bottom line: If you offer something your competitor doesn’t—better pricing, features, support, or flexibility—competitor keyword bidding can be your way to the top. But only if your ads are honest, your landing pages are relevant, and your message prioritises your strengths.

Done right, this strategy:

  • Captures high-intent users
  • Increases brand visibility
  • Positions you as a legitimate alternative

Done wrong? It burns budget, invites legal headaches, and damages your reputation.

So, can you use competitor brand keywords in Google Ads?

Yes.

Should you? Only if you do it right.

Start smart. Stay compliant. Stand out.

Competitor Keyword Bidding

FAQs – Using Competitor Brand Names in Google Ads (200–300 words)

Can I bid on competitor brand names in Google Ads?

Yes, Google allows you to bid on competitor brand names as keywords. However, you cannot use those brand names in your ad copy unless you meet specific exceptions (like being an authorized reseller or review site).

Can I include a competitor’s name in my ad text?

No, not unless you have explicit authorization or fall under Google’s exceptions (such as being a certified reseller or informational site). Otherwise, this could lead to ad disapproval or trademark violation claims.

What happens if my competitor reports me for using their brand?

Google will review the complaint. If you violate their trademark policy, your ads may be:

  • Disapproved
  • Restricted from showing
  • Flagged for further review

Repeated violations may affect your account’s health.

Is it legal to run comparison ads using competitor names?

Legally, it’s possible, if the comparisons are factual and not misleading. In some regions, comparative advertising is protected, but you cannot use competitor names in ad copy unless Google permits it based on policy or legal guidelines.

Can my competitor bid on my brand name?

Yes. If you haven’t trademarked your brand or submitted a complaint to Google, competitors can legally bid on your brand name. However, they cannot use your name in ad text unless authorized.

How can I protect my brand from competitor ads?

  • Register your trademark if you haven’t already.
  • File a trademark complaint with Google.
  • Monitor branded search terms using Auction Insights.
  • Run branded campaigns to stay at the top of your search results.

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