Bidding on Competitor Keywords in Google Ads: Rules and Tactics

Bidding on competitor keywords in Google Ads is allowed: Google's trademark policy does not restrict the use of another company's brand name as a keyword, so you can target searches for a rival's name. What Google can restrict is the trademark appearing in your ad text, and that restriction usually starts when the trademark owner files a complaint.

That split between keywords and ad copy shapes everything else about a competitor campaign: how you write the ads, why the Quality Score tends to be weak, why clicks often cost more than on your own brand, and what you can and cannot do when someone bids on yours. This guide walks through each part, using the policy mechanics as Google describes them in its Advertising Policies help pages.

Can I use competitor brand names as keywords in Google Ads?

Yes. The trademark policy lists "using trademarks as keywords" among the things Google will not restrict. You can add a competitor's brand name as an exact, phrase or broad match keyword, and Google will not disapprove the keyword itself because a trademark owner objects. A trademark complaint does not cover keyword selection.

This does not mean the practice is free of risk everywhere. Google's policy says it abides by local trademark laws, and trademark law is national. Whether bidding on a registered mark exposes you to a legal claim depends on the country and its courts, not on Google's ad review. Google's policy is the minimum bar for getting ads to run, not legal clearance.

Can I use a competitor's trademark in ad text?

Usually not for long, if the owner objects. Once a trademark owner submits a complaint and Google reviews it, ads that use the term in the ad text can be restricted. The policy names two situations that get restricted: use of the trademark in an ad from a direct competitor, and use that is confusing, deceptive or misleading about who the advertiser is. The trademark has to appear in the ad itself for the policy to apply. Having the name only on your landing page does not trigger it.

A restricted ad does not simply vanish. It will usually show a limited policy status, which means it can run in some places and not others, or stop serving in the countries where the complaint applies. You will see the policy topic in the ad's status column in Google Ads.

The reseller and informational exceptions

Two kinds of advertisers can use a trademark in ad text even after a complaint, as long as they meet Google's conditions. Resellers can use it when the landing page is mainly for selling the trademarked product or service, including compatible parts, and clearly shows a way to buy plus commercial details such as prices. Informational sites can use it when the landing page mainly gives information about the trademarked goods or services. In both cases the ad and landing page must make it clear what you are, a reseller or an information site, and not the brand owner. A direct competitor selling its own alternative fits neither exception.

Descriptive use is also allowed. If a trademark is also an ordinary word and you use it in its ordinary meaning, that use is not restricted.

What happens to Quality Score on competitor terms?

Expect it to be low. Quality Score is a 1-10 diagnostic reported at keyword level, built from three components: expected click-through rate, ad relevance and landing page experience. Each one is rated above average, average or below average. Competitor keywords tend to struggle on all three, for structural reasons.

• Expected CTR: a person who types a brand name usually wants that brand. Your ad is the second choice on the page by design, so fewer of those searchers click it.
• Ad relevance: Google judges how closely the ad matches the search intent. If you cannot use the competitor's name in your headlines, the ad text is less literally related to the query.
• Landing page experience: your page is about your product, not theirs. A comparison page helps here because it is genuinely relevant to someone weighing the two options.

Quality Score itself is not an input to the auction, Google describes it as a diagnostic tool. The underlying signals it summarises do feed into Ad Rank in real time, and that is what pushes competitor clicks to cost more.

How much do competitor keywords cost compared with brand terms?

There is no fixed ratio, and anyone quoting one is guessing about your market. The mechanics explain the direction. In each auction, Google calculates Ad Rank from your bid, the quality of your ad and landing page at that moment, the Ad Rank thresholds, the search context and the expected impact of assets. Your actual cost per click is the least you need to pay to hold your position, capped at your maximum bid.

On your own brand, your ad is the most relevant answer to the query, so you clear the competition with a modest bid. On a competitor's brand, the owner has that advantage over you. To show above or near them, you need a higher bid to make up for weaker quality signals.

An illustrative example, with made-up numbers to show the logic only: suppose your brand keyword clears its auctions at an average of 8 baht per click, and you add a rival's name with a 30 baht maximum bid. If the expected CTR and relevance are rated below average, you may find the keyword only reaches lower positions at that bid, with a click-through rate a fraction of what your brand terms get. Raise the bid and you may get more impressions, but each conversion will cost more than it does on brand. The real figures will come from your own account after a test period, not from an article.

The useful comparison is not cost per click. It is cost per acquisition and the value of the customer you won. A competitor click that converts at a reasonable cost and brings in a customer who would never have found you can justify a high CPC.

Should competitor campaigns run separately from brand campaigns?

Yes, keep them in their own campaign. The reasons are practical.

1. Budget control. Competitor terms can spend fast at a high CPC. A separate campaign gives them their own daily budget so they cannot starve your brand or generic campaigns.
2. Bidding. Brand traffic converts very differently from competitor traffic. Mixing them in one campaign means Smart Bidding learns from a blended average that describes neither. A separate campaign can have its own target CPA or target ROAS, or manual bids while you gather data.
3. Reporting. Blended reporting hides whether competitor spend is profitable. Separate campaigns make the cost per conversion of each group obvious.
4. Policy isolation. If ads in the competitor campaign get restricted after a complaint, the rest of the account is easier to keep clean.

Inside that campaign, use one ad group per competitor so each ad and landing page can speak to that specific comparison. Then add each competitor name as a negative keyword in your other campaigns. Negative keywords do not match close variants, so add the misspellings and spacing variants you find in the search terms report as well. If you run Performance Max or broad match Search campaigns, use brand exclusions to keep competitor brand traffic out of those campaigns, so it only flows through the campaign you built for it.

Writing ads that work without the competitor's name

Since the name is likely to be restricted in ad text, write ads that make sense next to a search for the other brand without mentioning it. Some approaches that stay within policy:

• Lead with the category and your difference: "Accounting software with Thai-language support" reads clearly next to a rival's result.
• Name the reason people switch, such as contract terms, setup time or local support, but only if it is true and you can show it on the landing page.
• Invite comparison without claims you cannot back: "Compare plans before you decide" is safer than "Cheaper than X".
• Send traffic to a comparison page that explains honestly where you differ. Comparative claims still fall under Google's other policies on misrepresentation, so keep them accurate and current.

Do not try to imitate the competitor's branding or phrase the ad so it looks like their official listing. That is the confusing or misleading use the policy targets.

How to stop competitors bidding on your brand

You cannot stop a competitor from using your brand name as a keyword through Google's trademark policy, because keyword use is not restricted. What you can control is your name in their ad text, plus how strong your own presence is on those searches.

File a trademark complaint about ad text

Trademark owners, or agents acting for them, submit complaints through Google's legal complaint process for reporting content on Google. Google only accepts complaints against specific advertisers identified by their URLs, and only for the countries where you can show you hold rights in the trademark. After review, Google may restrict use of the term in those advertisers' ads. Restrictions generally extend to other ads using the same second-level domain in their final URL, so the advertiser cannot dodge it with a new account pointing at the same site.

Authorize the partners you want to allow

If you resell through partners or affiliates, a broad restriction can block them too. Google lets the trademark owner, or an authorized agent with proof, submit an authorization request naming specific advertisers who may use the trademark. Authorizations must be unconditional, so Google rejects ones with expiry dates or territorial limits, and the owner can withdraw them later.

Defend with your own brand campaign

Bidding on your own name is the most direct defence. Your ad will usually have the best relevance and expected CTR on that query, so you can hold the top position at a lower cost than a rival can. Use Auction Insights on your brand campaign to see which domains appear, their impression share, overlap rate and how often they show above you. That tells you who is bidding and whether it is getting worse.

Consider the legal route

If a competitor's conduct goes beyond keyword bidding, for example passing off or misleading claims, that is a question for a trademark lawyer in the relevant country, not something Google's ad policy will settle.

Regional differences to know

Google's current trademark policy applies one set of rules across Google Ads and does not name countries where keyword use gets extra restriction. Two things still vary by place. First, complaints work per country: you can only get restrictions where you can show trademark rights, so a mark registered in one market may not be protected in another. Second, the legal position differs. Courts in different countries have taken different views on keyword advertising, so an approach that is routine in one market can carry more legal risk in another. If you advertise across several countries, check the law in each one rather than assuming Google's rule covers it.

Common mistakes and what they cost

• Putting competitor keywords in the brand campaign. Brand performance looks worse and the competitor spend is hidden inside it.
• Leaving dynamic keyword insertion on. The competitor's name gets inserted into your headline, which can get the ad restricted and wastes the work.
• No negatives elsewhere. Broad match in generic campaigns picks up competitor brand searches at generic bids, with ads that were never written for them.
• Judging on CPC alone. High CPC is expected; the test is cost per conversion and lead quality.
• Sending clicks to the home page. Someone comparing two brands wants a reason to switch, and the home page rarely gives one.

What to measure

Track each competitor ad group separately: impressions, click-through rate, conversion rate, cost per conversion and, if you can import it, revenue or lead quality from your CRM. Review the search terms report weekly at first, because competitor names often trigger searches for support, login or careers pages that you will never convert. Add those as negatives. Give a new competitor campaign enough time and conversions to judge it before you scale or stop.

What this means in the Thai market

In Thailand, trademarks are registered with the Department of Intellectual Property under the Trademark Act B.E. 2534, and a Google complaint needs proof of rights in the country where you want ads restricted. A mark registered only abroad may not be enough for Thailand.

Thai searchers type brand names in more than one way: in Latin script, in Thai script and in transliterations with different spellings. Each version is a separate keyword and, for your defence, a separate negative to add elsewhere. Write ads and comparison pages in Thai for Thai-language queries.

FAQ

Is bidding on competitor keywords in Google Ads legal?

Google's trademark policy allows it, because trademarks used as keywords are not restricted. Whether it is lawful in a given country is a matter of local trademark law, so check that separately for each market you target.

Will Google tell the competitor that I am bidding on their name?

Google does not send competitors a list of your keywords. They can see your domain in their Auction Insights report if you compete in the same auctions, and anyone can see your ad by searching.

Can a competitor get my ads removed for using their brand as a keyword?

No, a trademark complaint covers the trademark in ad text, not keyword use. If your ad text contains their name, those ads can be restricted after a complaint.

Why is my Quality Score so low on competitor keywords?

Because the searcher is looking for another brand, so expected CTR, ad relevance and landing page experience usually rate lower than on your own terms. A dedicated comparison page and clear, specific ad text help, but competitor terms rarely match brand-level scores.

Should I bid on my own brand if competitors bid on it?

Usually yes, because your ad is the most relevant result for your name and tends to win the top position at a lower cost per click. Check Auction Insights to see how often others appear above you.

Competitor campaigns work best when they sit inside a well-structured account with clean brand, generic and competitor separation. To see how RA plans and runs search campaigns, visit the Google Ads management page or read about Relevant Search for Google Ads. If the weak point is the page people land on, the landing page design service covers landing pages built to match ad campaigns, and advertisers on Bing can review Microsoft Ads management, where the same competitor questions apply.