Should You Bid on Competitor Brand Names in Google Ads?

One of the questions I often hear from people managing their own Google Ads is:

“Should I bid on my competitors’ names?”

It’s a fair question. The idea of showing up when someone searches for your rival can feel tempting, almost like you’re pinching a bit of their spotlight. But, like most things in Google Ads, the answer isn’t as simple as yes or no. It depends on what you’re trying to achieve, how much budget you’ve got, and the type of campaign you’re running.

In this post, I’ll break it down into the main campaign types: search, shopping, display, and video, so you can weigh up whether bidding on competitor terms is the right move for you.

Search Campaigns: The Obvious Route

When people think about competitor bidding, search ads are usually what comes to mind. For example, let’s say you run a local florist in Exeter. Your competitor “Blossom & Vine” is well known in town, so you decide to bid on the keyword “Blossom & Vine florist Exeter”.

Your ad could pop up when someone types that in, but here’s the catch:

• It can get expensive. Because you’re bidding on someone else’s brand, your ad won’t be as relevant as theirs. That means your quality score is likely to be lower, and Google often charges more for lower scores.

• Intent might not be in your favour. If someone has already decided they want “Blossom & Vine,” they might click your ad by accident, only to bounce when they realise you’re not who they were looking for. You still pay for that click.

• You’ll need to tread carefully. You can’t use your competitor’s brand name in your ad text, so you’ll need to focus on your unique selling points instead.

That said, if your product or service is strong and you’ve got something genuinely different to offer, competitor search campaigns can work. Just be prepared for a higher cost per click and accept that not every click will turn into a customer.

Over the years, I have seen some great campaigns targeting competitors' names, but they are often paused because, although they get initial engagement, they frequently fail to convert into profitable sales.

Shopping Campaigns: A More Level Playing Field

Shopping ads work a little differently. If someone types in “luxury scented candles,” Google will show a carousel of products from a range of sellers. Your ad could appear alongside your competitor’s without it feeling like you’re hijacking their traffic.

Think of it like being in a department store: your candle is on the shelf right next to theirs. The shopper can compare images, prices, reviews, delivery options, and make their choice.

With shopping, you’re a little less likely to face the “wrong click” problem you get in search because people can see your product, price, and brand name upfront before clicking. In that sense, competitor bidding in shopping campaigns can feel more natural, you’re simply giving people more choice.

But again, let the data show you what's happening. If you're getting a ton of traffic for a competitor's brand or product (and paying for those clicks) and it's not leading to profitable sales, it might be time to take action. 

Display & Video Campaigns: A Subtle Approach

Here’s where things get interesting. With display and video campaigns, you can target people who visit specific types of websites, including your competitors’.

Let’s go back to our florist example. Imagine someone has spent time browsing “Blossom & Vine’s” website. Later, while they’re reading an online article or watching a YouTube video, they could see your image or video ad pop up, reminding them that you’re another option in town.

This can be more cost-effective than search competitor bidding because you’re not paying inflated click prices for brand keywords. Instead, you’re targeting people who are in the market (by visiting your competitors or similar to them) but maybe haven’t committed yet or have committed but could be swayed over to you for their next purchase?

So, Is It Worth It?

The short answer: sometimes.

• If you’ve got a tight budget, I’d be cautious about pouring it into competitor search terms, you may find your money doesn’t stretch very far.

• If you’re running shopping ads, competitor bidding feels more natural and can be a solid strategy.

• If you’ve got the creative assets, display and video ads targeting competitor audiences can be a cost-effective way to get noticed.

The key is to think about your goals. Are you trying to capture people ready to buy today, or are you playing a longer game of building awareness and planting seeds for the future?

A Real-World Example

I once worked with a SaaS client in the accountancy space. They were tempted to bid on a big competitor’s brand name in search. When we tested it, the clicks were costly, and the conversion rate wasn’t great, people wanted that competitor specifically.

Instead, we ran a display and video campaign targeting people who’d visited sites like the competitor’s site. Those ads reminded people there was another tool on the market, and the client started seeing engagement from people who were “shopping around.”

A Word of Caution

Before you go all in on competitor search campaigns, it’s worth mentioning that this can sometimes spark a bidding war. If your rival notices you bidding on their brand, they might start bidding on yours. That can drive up costs for both of you.

So, if you do decide to test competitor bidding, keep an eye on what happens next and be ready to adjust your strategy.

Wrapping Up

Bidding on competitors’ names in Google Ads isn’t a one-size-fits-all strategy. Sometimes it’s smart, sometimes it’s wasteful, and sometimes there’s a better route to get in front of the right people.

If you’re managing your own Google Ads and you’re unsure whether this approach makes sense for your business, the best next step is to chat it through with someone who can look at your specific situation.

👉 Book a discovery call with me, and we can explore what’s going to give you the best return for your budget.