Should You Bid on Competitor Keywords in Google Ads? Pros, Cons & Best Practices

Google Ads competitor keywords sit in a grey area: sometimes they win high‑intent searches you’d never reach; sometimes they burn budget and rile up Brand/Legal. This guide shows you when to run the tactic and how to set it up safely without tripping policy.

Why consider competitor keywords in Google Ads at all?

Non‑brand can plateau while brand terms are expensive or defended. The board still wants growth. In google ads, that pressure often pushes teams to test competitor terms. Competitor names often signal high, in‑market intent in Google Ads. If you have a clear differentiator and a relevant landing page, you can win qualified clicks that are actively comparing options. This play is sometimes called brand bidding or conquesting.

Click-through rate (CTR) often lags non‑brand. The wins I’ve seen came when the H1 repeated the searcher’s idea and the page stated where we’re a better fit.

But these queries are unforgiving. Quality Score tends to be lower because intent match is weaker. Expect higher CPCs and, often, lower conversion rate (CVR). That’s fine if the unit economics still make sense.

Policy & legal callout (UK‑friendly)

• Bidding on competitor trademarks as keywords is generally allowed in Google Ads.
• Using a competitor’s trademark in ad text can be restricted if the owner complains (exceptions for resellers and informational sites where policy conditions are met). Enforcement is complaint‑based.
• UK comparative ads must be truthful, verifiable, and not misleading, and you mustn’t confuse users about who you are. Keep the brand origin obvious.

Trust note: This guidance reflects how our Google Partner team runs Search alongside Meta/LinkedIn when it helps the goal. The principles below still apply if you expand beyond Search.

When does competitor bidding in Google Ads make sense and when doesn’t it?

Run it when… you’re capped on non‑brand volume; you can state a clear “why us” in one line; your landing page is comparative or tailored; lifetime value (LTV) supports higher CPCs; and you can isolate budget/test cleanly.

Skip it when… you have a tiny budget, no differentiator, weak post‑click experience, or heightened legal/brand risk. If you can’t build a landing page that speaks directly to the alternative, you’ll pay for curiosity and watch visitors bounce.

How should you set up competitor campaigns in Google Ads to protect budget and brand?

Campaign structure & brand defence in Google Ads

Create a dedicated Competitor campaign (Search) in Google Ads. Use exact and phrase match on competitor brand terms. Keep your own brand as a negative keyword at campaign level so reporting stays clean. Split competitors by tier (primary vs. long‑tail) so you can cap bids and budgets separately. This separation keeps reporting and budgets tidy in google ads.

Add a Brand Defence campaign on your own name with clean ad copy and sitelinks. Keep those terms out of the Competitor campaign via negatives so data stays tidy.

Ad copy for Google Ads (policy‑safe)

Keep it clear and comparative without naming rivals in the copy. Lead with your differentiation (fast implementation, integrations, price model, service). Avoid implying affiliation. If you have permission or qualify under policy (e.g., authorised reseller), document it.

Avoid Dynamic Keyword Insertion (DKI) on competitor terms so you don’t accidentally echo a trademark in your ad text. DKI can insert the triggering keyword into your ad text, including a competitor’s mark. It’s a simple safeguard for google ads.

Headline led with a differentiator. The landing page used the same line in the H1 and a clear action. CTR improved once the promise matched on the page.

Landing page stance

Use a comparison page that states, in plain language, when you’re the better fit. Make your origin obvious by placing your logo in the header and stating your company name in the first line. Include one proof point (a short case study or a stat) and a single primary action (“See how it works” or “Book a short demo”).

If you need to move quickly, treat it as a Conversion Rate Optimisation (CRO) exercise. Keep the copy tight and put the proof above the fold. Stick to one primary action. A/B test a couple of variants. If Brand pushes back on tone, frame it as a problem‑led page (“When X happens, here’s how we handle it”) rather than a brand‑to‑brand comparison.

Bidding & budget

Start with conservative bids (or cautious tCPA/tROAS) and cap daily budget tightly for the first 7–14 days. Review Quality Score components weekly; if ad relevance or landing‑page experience sits at “Below average,” fix message‑match and page content before bidding harder in google ads.

Run a weekly hygiene loop: prune queries with negatives, refresh ad tests, and shift budget to winners.

Query hygiene

Add obvious negatives such as careers, login, support and complaints. If you test Dynamic Search Ads (DSAs), put them in a separate ad group with strict negatives so the data stays clean.

Request a free, no‑obligation video audit. Our SEO & PPC experts review your website and competitors, then outline search opportunities and send a clear walkthrough. If you want an outside view on risk and structure, the video audit helps you decide whether to run this test.

What are the real pros and cons of bidding on competitor keywords?

Upside: incremental, high‑intent volume; share‑of‑voice in critical moments.

Downside: higher CPCs and lower CVR than your own brand; more complaints; Brand/Legal scrutiny; requires a credible landing page to work.

If the economics don’t hold after two or three iterations (ad and landing page), pause and re‑allocate. Competitor campaigns shouldn’t be sacred cows.

If you pause competitor Search, remarket to that traffic with neutral, problem‑led ads on Display/Meta and bring them back to a calmer comparison page. Make sure remarketing lists respect PECR/GDPR consent. Keep pre‑consent tags lean and transparent. Don’t fire remarketing tags until consent is given.

How should you measure competitor campaigns in Google Ads?

Define success before you launch. Set those targets inside google ads so budgets and pacing follow the plan. Use your non‑brand search as the benchmark; judge competitor performance against it, not against brand.

Pass/fail lines to set now

• CPA/ROAS: within X% of non‑brand benchmark (or better).
• Meeting/SQL rate: close enough to non‑brand to justify CPCs.
• Quality Score trend: ad relevance and landing-page experience at least “Average” after week one.
• Brand safety: zero policy flags and no confusion‑based complaints.

Attribution loop. Track ad group → landing page → conversion in GA4; pass identifiers to CRM. Use your attribution model to see assisted impact from competitor clicks (e.g., later brand/demo conversions) so you don’t judge performance on last‑click alone.

Add lead‑tracking signals (company lookups, return visits) so Sales can prioritise accounts showing comparison intent. Review meeting rate by campaign weekly; if lead quality lags, fix the landing page copy first.

Check Auction Insights weekly for overlap rate and top of page rate. Outranking share can also help when you need a single comparator metric. If a single rival dominates, cap bids, test a tighter comparison angle, or pause.

When one rival sits above you most of the time, it’s usually an angle problem, not a bid problem.

What’s a simple go/no‑go scorecard after 7–14 days?

Score each item 0/1; go live if you hit 6/8.

1. CPA/ROAS vs non‑brand is acceptable
2. Meeting/SQL rate is within tolerance
3. CTR is improving week‑on‑week
4. Ad relevance = Average or Above
5. Landing-page experience = Average or Above
6. Query quality is tight (negatives working)
7. No policy flags/complaints
8. Stakeholders (Brand/Legal) sign off the copy and landing page

If you score ≤5/8, pause and recycle budget into non‑brand or other tests.

Decision log tip: write one line per change (date, change, outcome). It speeds sign‑offs and stops circular debates.

What compliant ad angles work without naming rivals?

• Outcome‑led: “Switch without the downtime. See a live walkthrough.”
• Proof‑led: “Faster onboarding. Verified by UK teams. See how it works.”
• Offer‑led: “Flat pricing. No minimum term. Book a short demo.”
• Integration‑led: “Works with your stack. Send us your use case.””

Pair each with a matching comparison landing page section that answers: When are we a better fit? and What happens next?

Pattern example: Before: generic landing page with no proof → low ad relevance and poor CVR. After: comparison section with one proof line and a single CTA → higher ad relevance, cleaner meetings. (Illustrative pattern, not a claim.)

What legal and policy rules apply in the UK for Google Ads competitor keywords?

• Keywords: You can bid on competitor names.
• Ad text: Avoid competitor trademarks in copy unless you qualify (e.g., authorised reseller) or have permission. If the trademark owner complains and Google upholds it, your ad text may be restricted.
• Comparative claims: Must be truthful, verifiable, and not denigratory. Don’t imply affiliation. Keep your brand identity clear.

If in doubt, capture a quick written check from Legal or your agency before you scale. If a competitor complains about your ad text, remove any risky phrasing and escalate through Google’s trademark process; keep tickets and approvals on file.

How do you launch a Google Ads competitor campaign in 10 days?

• Kickoff (Days 1–2): Build the Competitor campaign in google ads; use exact and phrase match; add your brand as a negative keyword; set tight budgets and bids.
• Ads (Day 3): Draft clean comparative ads (no rival names).
• Page (Day 4): Ship a comparison landing section; add proof and one CTA.
• Run (Days 5–7): Launch; monitor Quality Score components and query quality; add negatives.
• Review (Days 8–10): Review CPA/ROAS and meeting rate; use the scorecard to decide keep/kill.

How do you decide to keep, fix, or kill a competitor campaign?

Use the scorecard and your non‑brand benchmark to decide fast.

Keep it if CPA/ROAS is on target and meeting rate holds up. Improving Quality Score is a bonus.

Fix it if ad relevance or landing‑page experience is dragging. Tighten message‑match and ship a comparison landing page, then run one retest.

Kill it if, after two iterations on ad and landing page, CPA and meeting rate still miss the mark; re‑invest in non‑brand or remarketing. Competitor bidding is a tactic not a strategy.

Bottom line: win only if the page keeps the ad’s promise and your numbers beat the non‑brand benchmark.

If you’re on the fence after the scorecard, a quick outside review helps tie the numbers to the page. We’ll review your website and competitors, outline search opportunities, and send a short video walkthrough then you can make the call. Book a Free Marketing Audit today!