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Benefits of profit bidding on competitors in paid search

Bidding on competitor keywords has become a common practice for PPC advertisers because it can significantly increase brand awareness, traffic, and even customer acquisition when done correctly. After all, if someone is looking for your direct competitor’s products or services, they’re probably looking for yours as well.

However, if you are not cautious, you may end up worse off than you started, with a low CTR, a lower Quality Score, and more expensive ads. So, rather than diving headfirst into competitor targeting, let’s first define it, weigh the pros and cons, and look at some examples to help you decide whether or not to bid on competitor keywords.

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Competitor targeting in PPC campaigns refers to bidding on competitor keywords to reach people looking for alternative brands. One can achieve this by directly bidding on the competitor’s brand such as keywords. The other way is by the indirect use of broad and phrase keywords. In any case, their potential customers are likely to notice your ads as well.

Advertisers who use the strategy do not pay unless they generate a click or a significant number of impressions. Even if the user clicks on the competitor ad they were looking for, the other bidding companies gain valuable brand awareness.

Bidding on competitor terms is more complicated than simply starting a new campaign and targeting someone else’s keywords. Advantages of bidding on competitor keywords-

There is less competition

Normally there are fewer advertisers who are bidding for the competition keywords for brands. If you bid on “email software,” for example, you must compete with every company that sells email software of any kind, from basic B2B email marketing software to advanced email automation solutions to B2C email servers.

You increase brand awareness

Another significant advantage of using Google Ads and bidding on competitor brand names is that it allows you to raise brand awareness. This is less true for larger, well-known corporations.

On a smaller scale, you can increase brand awareness by reaching out to the audiences that your competitors have already established. Anyone searching for your competitors will see your brand appear in the search results and may begin to consider you as an option as well.

A well-informed audience

One of the most significant advantages of bidding on competitors’ brand names is that it ensures a qualified audience for your offer. The majority of people looking for your competitor’s brand, product, or service are also looking for you.

Again, emphasize your UVP in the ad headline to emphasize that your brand is superior to your competitor’s. Anyone searching for your competitor will see both ads and consider why they should click yours over all others.

Therefore bidding on competitor brand names can improve your online advertising performance because if someone is already familiar with your competitor’s products or services, they may be interested in yours. It will add more visitors to your website and instantly boost the audience.


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