Look, we’ve all been there. You’re sitting at a pub in Paddington, scrolling through your phone, and you decide to Google your biggest competitor.
Maybe you’re checking if they’ve updated their prices, or maybe you’re just keeping an eye on the bloke who keeps undercutting your quotes. Then you see it. An ad for another business sitting right on top of their name.
Your first thought is probably: “That’s cheeky. I want in on that.”
Bidding on your competitor’s brand name in Google Ads is a classic move. It’s the digital equivalent of parking your billboard right outside their front gate. But before you go throwing your hard-earned cash at it, you need to know if it’s actually going to make you money or if you’re just paying for the privilege of being a nuisance.
What is Competitor Bidding, Anyway?
In plain English, it’s when you tell Google: “Whenever someone searches for 'Dave’s Plumbing Services', I want my ad to show up.”
You’re basically trying to intercept a customer who was already on their way to see someone else. It sounds like a slam dunk, doesn’t it? They’re looking for a plumber, they’ve found you instead, and you get the job. Easy.
But it’s rarely that simple.
When people search for a specific business name, they usually have a reason. They might be a returning customer, they might have a referral, or they might just be looking for a phone number to complain about a botched job. If you pay for that click and they realise you’re not Dave, they’ll leave your site faster than a tradie at 3:30 pm on a Friday.
Why Most People Stuff This Up
Most small business owners get emotional about this. They want to “win” against the guy down the road. But Google doesn't care about your rivalry. Google cares about relevance.
If someone searches for “Bunnings” and your local hardware shop pops up, Google knows you aren't Bunnings. Because you aren't what the user asked for, Google will charge you a “cluelessness tax.” Your cost per click will be way higher than what your competitor pays for their own name.
If you aren't careful, you’ll end up burning cash on Google Ads without a single new booking to show for it. You’ve got to be smart about which fights you pick.
When Does It Actually Work?
If you’re going to do this, you need a better reason than “I don't like that guy.” Here is when it actually makes sense for a Brisbane business:
1. You’re the New Kid on the Block
If you’ve just started out and nobody knows your name yet, you can hitch a ride on the big players. If people are searching for the massive franchise in your industry, showing up nearby with a “Support Local” or “Better Rates” message can work. You’re essentially stealing their brand awareness.2. Your Competitor is Rubbish
This is my favourite. If a competitor has a 2-star rating on Google and a reputation for never showing up, that’s your opening. Your ad can say something like: “Tired of being let down? We actually show up on time.” You’re offering a solution to a problem the customer is likely already worried about.3. You’re Genuinely Cheaper or Better
If the big guy charges a $200 call-out fee and you charge $50, put that in the headline. Give the customer a reason to change their mind in the three seconds they spend looking at the search results.The “Don’t Be an Idiot” Rules
Before you go into your Google Ads account and start bidding on every rival in town, there are a few things you need to know to avoid getting your account banned or ending up in a legal mess.
Don’t pretend to be them. You cannot put their business name in your ad headline. That’s trademark infringement and it’s a great way to get a nasty letter from a lawyer. Your ad should make it clear who you are. You want to offer an alternative, not a deception.
Check your landing page. If your ad says “Better than Dave’s,” but your website is just a generic home page, the customer will get confused and leave. You need to make sure your website works on phones and immediately shows them why you’re the better choice.
"Bidding on a competitor's name is high-stakes poker; if your website doesn't immediately prove you're the better option, you're just paying Google to help your rival look more popular."
— James O'Brien, Content Marketing Manager
The Financial Reality
Let’s talk money. Competitor clicks are almost always more expensive than clicks for general terms like “electrician Brisbane” or “lawyer near me.”
Why? Because Google’s system thinks you’re less relevant. To get to the top of the page for someone else’s name, you have to outbid them by a significant margin.
If a normal lead costs you $20, a competitor lead might cost you $40 or $50. You have to ask yourself: Is that customer worth the extra fifty bucks? If you’re a locksmith and the job is only worth $120, probably not. If you’re a roofer and the job is worth $15,000, then absolutely.
Better Ways to Spend Your Budget
Honestly? For 80% of the small businesses we talk to in Brisbane, competitor bidding is a distraction. They usually have much bigger leaks in their bucket that need fixing first.
Before you try to steal someone else's customers, make sure you aren't paying Google for customers who already know you. It sounds crazy, but heaps of businesses pay for ads when someone searches for their own business name. Unless a competitor is bidding on you, that’s often just throwing money away.
Focus on the basics first: 1. Are you showing up for the services you actually provide? 2. Does your website make the phone ring? 3. Are you following up on enquiries fast enough?
If you’ve ticked those boxes and you’ve still got some marketing budget left over, then sure, let’s go after the competition.
How to Set Up a Competitor Campaign Properly
If you’ve decided to go ahead with it, don't just add the competitor names to your main campaign. That’ll mess up your data and make it look like your ads are performing worse than they are.
Create a separate campaign specifically for “Competitor Conquesting.” This keeps the costs separate and allows you to write specific ads that address why you’re the better option.
Keep a close eye on the "Search Terms" report. You’ll often find people searching for things like "[Competitor Name] login" or "[Competitor Name] careers." You do NOT want to pay for those clicks. Those people are looking for their staff portal or a job, not a new provider. Add those as negative keywords immediately.
Is It Worth the Drama?
One thing no one tells you about competitor bidding is the “tit-for-tat” factor.
If you start bidding on the bloke down the road, there’s a good chance he’ll notice. And if he’s got a bit of an ego (and let’s be honest, most business owners do), he might start bidding on your name out of spite.
Suddenly, you’re both paying Google $5 a click for customers who were already looking for you. The only winner in that scenario is Google’s bank account.
Sometimes, the best move is to stay in your lane and focus on being the best business in your suburb. If your service is top-notch and your business is busy, you won't need to resort to cheeky tactics to keep the phone ringing.
My Honest Take
Competitor bidding is a tool, not a strategy. It’s great for a short-term aggressive push or for disrupting a market leader who has become lazy and expensive.
But if you’re a local tradie or a small shop, your money is almost always better spent on making sure you’re the first person people see when they search for the service you provide, not the name of the guy next door.
If you want to know if your current Google Ads are actually making you money or just funding a Google executive's next yacht, we should probably have a chat. We see a lot of rubbish setups that could be fixed in an afternoon.
You can reach out to us at Local Marketing Group and we’ll take a look at what’s actually happening under the hood of your account. No jargon, just a straight-up look at where your money is going.