Can I Use Competitor Brand Names in Google Ads?
Digital marketing can be tricky and requires creativity to be competitive. One way to be competitive is to bid on competitor names in Google Ads. Grabbing some of your competitors’ traffic seems like a simple and strategic move, but it’s usually more complicated than that. This post dives into the nuances, laws and best practices of a competitor campaign so you can make an informed decision if you’re considering this strategy.
Google’s Policies
Google Ads has strict policies to ensure fair competition and user trust. One of the areas they cover is trademarks. You can bid on competitor keywords, including their brand names, if you follow Google’s policies. But that doesn’t mean you can use their trademarked terms in your ad copy without explicit permission. This is important because bidding on a competitor’s name can get you in front of relevant searches, but misusing their trademarks in your ad copy can get you disapproved or even sued by the competitor.
Monitor notifications in Google Ads to see if bidding on a competitor’s name has violated any policies in your account.
Legal Stuff
Using competitor names in Google Ads isn’t just about following Google’s rules, it’s also about staying out of trouble with the law. Trademark infringement can cost you big time and damage your brand’s reputation if you are careless.
In many places, using a competitor’s trademark in your ad copy can be considered misleading or deceptive. This is especially true if the ad implies affiliation or endorsement with the competitor when there is none. To avoid these traps, you need to have a basic understanding of trademark laws and ensure your ads are clear, honest and non-deceptive. Consult with in-house counsel if available, otherwise, proceed with caution.
Strategic Considerations
Using competitor names in your Google Ads has strategic implications. Bidding on competitor keywords can be a double-edged sword. On one hand, it can drive highly relevant traffic to your site, especially if users are unhappy with the competitor’s product. On the other hand, it can cost you more and create a bidding war that may not be sustainable in the long term.
Pros & Cons of Using Competitor Names in Google Ads
Pro: More Visibility
Bidding on competitor keywords gets you in front of users who are already looking for similar products / services. Even if a user doesn’t click on your ad, you’re still visible in the auction and could be part of their consideration set.
Pro: Steal Market Share
This strategy can help you steal some of your competitor’s market share, especially if your product is better or more attractive to the customer.
Pro: Highlight a Unique Selling Point
When users search for your competitor, seeing your ad makes them consider your unique selling point, potentially swaying their decision. For instance, if you run an e-commerce store and offer free shipping for your products, messaging about free shipping could look more appealing to a customer searching for a competing brand’s product.
Con: Higher Costs
Competitor keywords have high cost-per-click (CPC) rates because they’re relevant and competitive, which can quickly blow your budget. Additionally, bidding on a competitor’s name will almost always have a low-quality score due to its relevance, which in turn causes your average CPC to be higher. Google knows you’re not the brand you’re trying to bid, so you’ll pay more.
Con: Legal Trouble
Misusing competitor names can get you in legal trouble, as mentioned earlier in this post. Outside of the Google world, you could be handed a cease-and-desist from a competitor, or worse.
Con: Negative Brand Perception
Users may see your brand as aggressive or untrustworthy if they feel you’re targeting competitors unfairly. There is where you have to be very thoughtful in your ad copy.
Best Practices When Pursuing a Competitor Ad Strategy
Follow the best practices below if you decide to use competitor names as a strategy in your Google Ads.
Keyword Strategy
Bid on competitor keywords to appear in relevant searches without using their trademarked terms in your ad copy. Conduct thorough keyword research to identify broad match and phrase match opportunities that capture variations and long-tail keywords related to your competitors without using their brand names. For example, use “competitor brand name” + “review” as a keyword in your ad set.
Ad Copy
Don’t use trademarked terms in your ad copy unless you have explicit permission from the trademark owner. Focus on what makes your brand / offering different. Use ad copy to highlight your USP, special offers and benefits. Be clear about who you are and avoid any language that could make users think you’re somehow affiliated with your competitor.
Landing Pages
Make sure your landing page content matches your ad copy and is seamless. Ensure the landing page is highly relevant to the keywords and ad copy to improve quality scores and engagement rates. Avoid blatantly putting your competitors’ names on a landing page to try to trick customers; instead, focus on how your offer is better.
Monitoring & Tweaking the Strategy
Monitor your competitor keyword ads regularly to ensure they meet your goals and do not upend your ad budget. Review CTR, conversion rates and ROAS from this competitor campaign. If you see any issues, tweak the strategy by adjusting the bids, the ad copy, ad extensions and more.
Lastly, give the strategy time. This type of strategy takes time to accrue data, make adjustments and monitor user behavior. Also be considerate of attribution when evaluating conversions; it’s likely a customer could find you through a competitor keyword campaign and return later on either directly, through social media, through SEO, etc.
Is This the Right Strategy for Your Brand?
Using competitor names in Google Ads is a powerful tool in your digital toolbox, but it comes with pros and cons. Know Google’s policies, follow legal guidelines, and follow best practices, and you can use this strategy to get ahead while keeping your brand intact. Always stay informed and agile.
If you have any questions or need help with this type of campaign, don’t hesitate to reach out. We’ll schedule a consultation and help determine if this is the right ad strategy for your brand.
