Competitor bidding, also called conquesting, is buying search ads on other companies’ brand names. SaaS companies do it to reach buyers already evaluating a rival. Those searchers mostly want the competitor’s site, so click-through rates tend to be lower and clicks pricier, but the buyers who do click are often close to a decision.
Which searches to target
Plain navigational searches (just the competitor name) are the hardest to win. Searches that show the buyer is weighing options tend to work better.
- [competitor] alternative or alternatives
- [competitor] vs [your product] or [competitor] vs [another competitor]
- [competitor] pricing, especially if your pricing compares well
- [competitor] reviews or complaints
Where to send the click
A competitor-alternative or comparison page answers the buyer’s actual question, which usually beats the home page. The same pages can rank organically, so the paid and SEO work reinforce each other.
Rules and etiquette
Google generally allows bidding on competitor trademarks as keywords but restricts their use in ad text where the owner has filed a complaint, and rules differ by country. Do not imply you are the competitor or make claims about them you cannot support. Expect retaliation: a rival may start bidding on your brand in turn.
Example
Alternative searches only
Hypothetical company Fernhollow skips bidding on its biggest rival’s bare brand name and targets only “[rival] alternative” and “[rival] vs” searches, landing on a balanced comparison page. Fewer impressions, but a far better cost per demo than its earlier test on the bare name.
Common mistakes
Using the competitor’s name in ad text
This can trigger disapprovals or complaints. Write about your own product and the reason to compare.
Questions
In many markets bidding on a trademarked keyword has been allowed, but the use of trademarks in ad text and any misleading implication can create legal risk. Rules vary by country, so get legal advice for your situation.
