Look, we’ve all been there. You’re sitting at a cafe in Bulimba, you pull out your phone, and you search for your biggest rival.
What do you see?
If they’re smart, you see their website. But if you’re smarter, you want your own business popping up right above theirs. You want to intercept their customers right at the finish line.
In the marketing world, we call this 'competitor bidding.' In the real world, it’s basically just standing outside their shop with a louder megaphone and a better offer.
But before you go dumping your hard-earned house deposit into Google Ads to spite the bloke down the road, we need to talk. Because most people do this completely wrong and end up just making Google richer while their own bank account stays dry.
The Truth About Bidding on Other People’s Names
Honestly? Most agencies won’t tell you this, but bidding on a competitor’s name is usually more expensive than bidding on what you actually do.
If you’re a plumber in Coorparoo and you bid on 'plumber near me', Google is happy. But if you bid on 'Joe’s Local Plumbing Repairs', Google gets suspicious. They know the person searching is looking for Joe, not you.
So, they charge you a 'clueless tax'.
Your ads will cost more per click, and they won’t show up as often. But—and this is a big but—if you do it right, those clicks can be some of the most profitable leads you’ll ever get. Why? Because that customer is already at the 'I need to hire someone right now' stage. They aren't just browsing; they’ve got their credit card out.
Is It Actually Legal? (The Short Answer)
I’m not a lawyer, and this isn't legal advice. If you want that, go pay someone $500 an hour to sit in a glass tower in the CBD.
But here’s the gist: In Australia, you can generally bid on a competitor’s brand name as a keyword. What you cannot do is use their trademarked name in your actual ad text to trick people into thinking you are them.
That’s called being a dodgy operator, and it’ll get you a 'cease and desist' letter faster than you can say 'Fair Work Commission'.
You have to be clear that you are you. You’re offering an alternative, not a counterfeit.
Why Most Small Businesses Fail at This
The biggest mistake I see is business owners being too 'polite' or too boring with their ads.
If someone searches for 'Big Brand Air Con' and your ad says 'We Do Air Con Too,' they’re going to ignore you. You’ve given them no reason to switch.
You need a hook. You need to identify why someone might be unhappy with that competitor and poke the bear.
Are they too expensive? Mention your fair pricing. Do they take three weeks to show up? Mention your same-day service. Do they have a 2-star rating on Google? Mention your 300+ 5-star reviews.
If you don't have a better offer, you're just burning cash on Google for the sake of your ego. And ego doesn't pay the mortgage.
The 'Aggressive' Strategy vs. The 'Cheeky' Strategy
There are two ways to play this game.
1. The Direct Hijack
This is where you go head-to-head. You bid high, you show up at the top, and your ad says something like: 'Thinking of [Competitor]? See why 500 locals switched to us this year.'It’s bold. It’s aggressive. It works incredibly well if the competitor is a big, faceless national company that everyone secretly hates because their customer service is rubbish.
2. The Comparison Play
You lead them to a page on your website that literally compares you to them. 'Us vs. Them'.Be honest here. Don't lie, or you'll get sued. But highlight your strengths. Maybe you offer a 10-year warranty and they only offer 2. Maybe you’re family-owned and they’re owned by a private equity firm in Sydney.
People love a comparison. It saves them the homework.
What’s Changing in 2024 and 2025?
Google is getting 'smarter', which usually means they’re finding new ways to automate things so you have less control.
We’re seeing a massive shift toward what Google calls 'broad match'. In the old days, you’d tell Google: 'Only show my ad if someone types in exactly this.' Now, Google tries to guess what the person wants.
This is dangerous. If you aren't careful, Google will show your ads for all sorts of rubbish that won't make you a cent. We spend half our time fixing Performance Max campaigns for clients because Google decided to spend their budget on searches that have nothing to do with their business.
When it comes to competitors, you have to be surgical. You can't just set and forget. You need to watch the 'Search Terms' report like a hawk to make sure you aren't paying for clicks from people just looking for the competitor's login page or phone number to complain.
"Bidding on a competitor's name isn't about being the biggest bully in the search results; it's about being the most helpful alternative at the exact moment a customer is second-guessing their first choice."
— Rachel Wong, Marketing Director
The Hidden Cost: The Bidding War
Here’s something to keep in mind: if you start bidding on your competitor, they might notice.
And if they’re petty (and let’s be honest, many business owners are), they might start bidding on your name.
Suddenly, the price of your own brand name goes up. You end up paying $5 a click for someone who was already looking for you. It’s a Mexican standoff where the only winner is Google’s shareholders.
Before you start this, ask yourself: 'Is my own house in order?'
If someone searches for your business name right now, do you own the top spot? If not, fix that first. It’s the cheapest traffic you’ll ever get, and you shouldn't let anyone else steal your customers because you were too busy looking at the bloke across the street.
When Should You Actually Do This?
I wouldn't recommend competitor bidding for every business. If you’re a brand new startup with a $500 monthly budget, don't bother. You'll get bullied out of the auction in ten minutes.
But you should consider it if:
1. You have a clear advantage. If you’re cheaper, faster, or better rated, tell the world. 2. Your competitor is huge. It’s much easier to steal crumbs from a giant than it is to fight another small local business. 3. Your 'normal' keywords are too expensive. Sometimes, bidding on a competitor’s name is actually cheaper than bidding on 'Lawyer Brisbane'. 4. You're in a 'grudge' purchase industry. Locksmiths, tow trucks, emergency plumbers. People in these situations don't have brand loyalty; they just want the first person who answers the phone.
How to Measure If It’s Working
Don't look at 'clicks'. Clicks are a vanity metric. I can get you a million clicks for $10 if I target the wrong people.
Look at conversions.
How many phone calls did you get? How many contact forms were filled out? What was the cost per lead compared to your other ads?
Expect the 'conversion rate' to be lower on competitor ads. Remember, these people were looking for someone else. You’re the 'interrupter'. You have to work twice as hard to convince them to change their mind.
If a normal lead costs you $50, and a competitor lead costs you $80, is it worth it? Maybe. If that customer stays with you for ten years, it’s a bargain. If it’s a one-off job, maybe not.
My Honest Take on the Future
Predictions are usually rubbish, but here’s what I’m seeing on the ground in Brisbane.
Local service ads (those little green tick boxes at the very top of Google) are going to become more important than traditional text ads. If you aren't verified by Google yet, do it.
Also, people are getting savvier. They can smell a 'fake' ad from a mile away. The future of competitor bidding isn't about trickery; it’s about transparency.
'Hey, we know you were looking for Joe. We like Joe. But we’re 20% cheaper and we actually answer our phones on Saturdays. Want to chat?'
That kind of honesty builds trust before they’ve even clicked the button.
What Should You Do First?
Before you spend a cent, do this:
1. Search for your own business name. If you don't show up first, buy your own name as a keyword immediately. 2. Search for your top 3 competitors. See who is already bidding on them. If the space is empty, it’s a goldmine. If it’s crowded with 4 other ads, it’s going to be an expensive fight. 3. Check your website on your phone. If your site is slow or hard to use, don't bother sending traffic to it. You’re just throwing money into the Brisbane River.
Summing It Up
Competitor bidding is a high-risk, high-reward play. It’s not a 'set and forget' strategy, and it’s definitely not for the faint of heart.
But if you’ve got a solid business, a great offer, and you’re sick of seeing the 'big guys' take all the work, it’s one of the fastest ways to grow.
Just don't be a dick about it. Be better, not just louder.
If this sounds like a lot of work (and it is), or if you’ve tried it before and just ended up with a massive bill and no new customers, give us a shout. We do this all day for businesses across Brisbane, and we’re pretty good at spotting a waste of money before it happens.
You can find us at Local Marketing Group. Let’s have a chat about how to actually make your ads work for you.