The Truth About Bidding on Your Competitor’s Name
I see it every single week here in Brisbane. A local business owner—maybe a locksmith in Coorparoo or a law firm in the CBD—calls me up fuming.
"Have you seen this?" they ask. "I searched for my own business name on Google, and my biggest competitor is showing up right at the top! They’re stealing my customers!"
It feels like a personal attack. It feels like someone is standing outside your shop front with a megaphone, redirecting your regulars to the store down the road. Naturally, the first instinct is to retaliate. You want to bid on their name and show them who’s boss.
But before you go throwing your hard-earned cash at a Google Ads war, you need to understand the reality of how this works. Most of what you’ve been told about "competitor bidding" is rubbish pushed by agencies who just want you to spend more money.
In this guide, I’m going to bust the myths around these tactics and show you how to actually protect your business without flushing money down the toilet.
Myth #1: "If I bid on their name, I’ll steal their customers"
This is the biggest lie in digital marketing.
Think about how people use Google. If someone types "Jim’s Plumbing Services" into the search bar, they aren't looking for "a plumber." They are looking for Jim. They probably have his magnet on their fridge, or their brother-in-law recommended him.
When your ad pops up saying "Best Local Plumber - Call Us Instead," most people will simply ignore it. They know what they want. In fact, many people find these ads annoying.
I’ve looked at the data for dozens of Brisbane businesses who tried to steal competitors' customers this way. The result? Very few people actually click the ad. And the ones who do? They often click by accident, realise you aren't who they were looking for, and leave immediately.
You’ve just paid Google $5 or $10 for a click that had zero chance of becoming a sale.
The Reality: Bidding on a competitor’s name usually results in a very high cost for very low-quality leads. Unless you have a massive budget and a truly "killer" offer (like being 50% cheaper or offering a 1-hour guarantee they can't match), it’s often a waste of money.
Myth #2: "I don't need to bid on my own name"
This is the opposite mistake. Business owners tell me, "Why should I pay for an ad when I already show up first in the free listings?"
Here’s why: If you aren't bidding on your own name, you are leaving the door wide open for your competitors to park their ads right on top of your listing.
Google is a pay-to-play platform. The ads always appear above the free (organic) results. If a competitor bids on your name and you don't, their phone number is the first thing a customer sees. Even if that customer was looking for you, they might just click the first button they see because it’s convenient.
Protecting your brand name is the cheapest advertising you will ever do. Because Google knows it’s your business, they charge you a fraction of what they charge your competitors to show up. It might cost you 20 cents to show up for your own name, while it might cost your competitor $5.00.
The Reality: Paying to show up for your own name isn't "double paying." It’s buying an insurance policy. It ensures that when someone looks for you, they find you and only you. It keeps your phone ringing instead of your competitor’s.
When Does Competitor Bidding Actually Work?
I’m not saying you should never bid on a competitor’s name. I’m saying you should only do it if you have a clear strategy and a realistic expectation of the cost.
It works in these specific scenarios:
1. The "Better Offer" Strategy: If your competitor is known for being expensive and you are significantly cheaper, you can win. Your ad needs to say: "Paying too much at [Competitor Name]? We do the same job for $200 less." 2. The "Availability" Strategy: If the big players in your industry have a 2-week waitlist and you can get there today, that’s a win. "Can't get a booking at [Competitor]? We have slots available this afternoon." 3. The "Big Brand" Strategy: If you are a small local shop and you bid on a massive national franchise name, you can sometimes pick up people who would prefer to deal with a local owner-operator.
But even in these cases, you have to fix your tracking before you start. If you don't know exactly which clicks are turning into phone calls, you are just guessing. Competitor bidding is expensive, so you need to be certain it’s actually making you money, not just making you feel good because you're "winning" a fight.
The Hidden Cost: The Quality Score Trap
Google has a system that rewards relevance. If someone searches for "Apple," and Google shows them an ad for "Oranges," Google thinks that’s a bad experience for the user.
To discourage this, they make the "Orange" advertiser pay a lot more.
When you bid on a competitor’s name, Google sees that your website doesn't match the search term. Your "relevance score" drops through the floor. This means you might have to pay $15 for a click that would only cost the competitor $1.
This is why I often tell my mates in the trade: don't get into a bidding war. It’s a race to the bottom where the only winner is Google's bank account.
Practical Steps for Brisbane Business Owners
If you’re worried about competitors stealing your leads, here is what I recommend you do first:
1. Secure Your Own Backyard First
Set up a "Brand Campaign." This is a simple Google Ads campaign that only targets your own business name. It should cost very little—usually just a few dollars a day. This ensures you own the top spot on the page when people are looking specifically for you. It prevents the "accidental" loss of customers to competitors who are bidding on your name.2. Check Your Results Daily
Don't just set it and forget it. Look at your "Auction Insights" report in Google Ads. This report shows you exactly which competitors are trying to show up when people search for terms related to your business. If you see a new player suddenly appearing, you might need to adjust your strategy.3. Focus on "Intent" Over "Names"
Instead of trying to steal customers from a specific rival, focus on people who are ready to buy right now. Use keywords like "emergency plumber North Lakes" or "urgent brake repair Milton." These people haven't decided who to use yet. They are much easier (and cheaper) to convert into customers than someone who is already looking for your competitor by name.4. Watch Your Budget
Competitor bidding can eat through a marketing budget faster than a Brisbane hail storm ruins a car yard. If you decide to try it, set a very strict daily limit. You don't want to wake up and find you've spent $500 on clicks from people who were actually trying to find your rival's login page. Knowing how to budget for Google Ads is the difference between a growing business and a bankrupt one.Is it Worth the Headache?
Most small business owners in Queensland are busy enough as it is. You’re managing staff, dealing with suppliers, and trying to keep customers happy. You don't have time to play "spy vs spy" on Google.
In my experience, 90% of the time, competitor bidding is a distraction. It’s an ego move. It feels good to see your name above theirs, but your bank balance doesn't care about your ego. It cares about profit.
I’ve seen businesses in suburbs like Chermside or Mt Gravatt spend thousands of dollars trying to "conquer" their competitors on Google, only to realise they were paying $100 for a lead that they could have gotten for $20 by just focusing on their own strengths.
What Should You Do Instead?
If you want more customers, stop worrying about what the bloke down the road is doing and focus on your own "hooks."
Make your website load fast on phones. If a customer clicks your ad and your site takes 10 seconds to load, they are gone. Make it easy to call you. Put your phone number in big text at the top of your site. Show off your reviews. Brisbane locals trust other locals. If you have 50 five-star reviews and your competitor only has three, you’ll win the customer almost every time, regardless of whose name they searched for. Be clear about your service area. If you only work in the Western Suburbs, say so. Don't pay for clicks from people in Logan.
Summary: The Local Marketing Group Stance
We don't believe in wasting money on "vanity" marketing. Bidding on competitors is often exactly that—vanity.
Here is the bottom line: 1. Always bid on your own name. It’s cheap, it protects your brand, and it’s the highest ROI you’ll get. 2. Only bid on competitors if you have a massive price or service advantage. If you’re "just as good" as them, don't bother. You'll pay 5x more for the click and get half the results. 3. Focus on high-intent keywords. Target people looking for the service, not the brand.
Marketing shouldn't be a mystery. It’s about putting your message in front of the right people at the right time for the right price. Most "competitor tactics" fail the "right price" test miserably.
If you’re tired of seeing your competitors take the lead and you want a straight-talking approach to getting more phone calls, we can help. We don't use fancy jargon or hide behind complicated reports. We focus on what makes you money.
Ready to stop wasting money and start getting more enquiries?
Contact Local Marketing Group today and let’s talk about a strategy that actually works for your Brisbane business.