One consistent challenge in PPC is competitors bidding on your branded terms and driving up your non-branded terms. Conquesting—intentional or otherwise—is an inevitable part of paid search due to factors like close variants and the growing prevalence of broad match in Google and Microsoft Ads. Understanding how to identify and address this issue effectively can mean the difference between maintaining strong performance and losing ground to rivals.
In this guide, we’ll explore actionable strategies for identifying competitors bidding on your terms, deciding when and how to respond, and mitigating the impact on your campaigns.
Why Competitors Bid on Branded Terms
Branded keyword bidding is an attractive strategy for competitors because it allows them to intercept high-intent traffic. If someone searches for your brand, they’re likely already close to converting. By appearing on those queries, competitors can attempt to divert those users to their offerings. While frustrating, this tactic is often part of the cost of doing business in paid media.
It’s essential to approach branded and non-branded bidding strategically. Consider whether the competitor’s activity represents a threat needing a response, a cost you’re willing to absorb, or an opportunity to refine your approach.
Identifying Competitors Bidding on Your Terms
The first step is understanding the scope of the problem. Two key tools within your paid media accounts can help you monitor competitor activity:
- Auction Insights: This report provides valuable visibility into who’s showing up on the same search result pages as you. Pay particular attention to impression share, overlap rate, and position metrics. A sudden uptick in a specific competitor’s presence could signal increased aggression.
- Search Terms Report: While this report focuses on the specific queries triggering your ads, it can also reveal which competitors are coming up for you naturally. There is a strong likelihood you’re coming up for them as well.
Tracking which competitors intentionally are targeting you vs unintentionally will help you focus your response. For example, a competitor with 30% impression share on your branded terms is likely intentionally targeting you, while a competitor with 10% is likely coming up by accident.
Strategic Responses to Competitor Bidding
Once you’ve identified competitors bidding on your terms, it’s time to evaluate your options. Not all instances require intervention, but when they do, the following strategies can help:
1. Adjust Your Creative
Your ad copy is a powerful tool for distinguishing your brand from competitors. Focus on messaging that reinforces your unique value proposition and makes it clear you’re the original brand.
- Use trademark symbols and brand-specific language to reinforce authenticity.
- Highlight benefits that competitors can’t claim, such as exclusive features or awards.
- Consider directing users to organic content that provides deeper insights into your offerings and avoid the cost of the click.
2. Monitor and Manage Costs
Competitor activity often drives up cost per click (CPC) for branded terms. It’s essential to determine how much of an increase you’re willing to tolerate before taking action. As a general rule:
- A 10-15% fluctuation in CPCs is typical and often not worth aggressive countermeasures.
- If CPCs rise by 20-30% or more, it may signal a need for intervention.
Options include:
- Bid Caps: Set limits to prevent runaway CPCs.
- Bid Adjustments: Experiment with raising bids strategically to regain prominence. Note that smart bidding only allows you to adjust the target (TCPA/TROAS).
3. Conquesting Campaigns
If competitors are aggressively bidding on your terms, you may want to return the favor. Conquesting campaigns allow you to bid on competitors’ branded terms, providing an opportunity to capture their traffic. To execute effectively:
- Create an ad group for each competitor to keep performance metrics isolated.
- Use ad copy that compares your offering to theirs without being disparaging.
- Monitor conversion rates carefully to ensure a positive return on ad spend (ROAS).
The Role of Visual Content and Display Placements
The evolution of paid media is increasingly visual, with platforms like Performance Max (PMax) prioritizing image and video assets. This shift means advertisers must think beyond text-based search ads when addressing competitor activity.
Exclude Competitors from Placements
For campaigns leveraging the Google Display Network or YouTube, take advantage of exclusion options:
- Use placement exclusions to prevent competitor ads from appearing on your site.
- Implement brand exclusions in PMax to avoid unintentional associations.
Define Content Rules
Establish clear guidelines for how your brand should engage with competitor content. For example, you might decide to:
- Avoid targeting placements where competitors’ ads dominate.
- Prioritize placements that align with your audience’s values and preferences.
Offline Agreements: A Rare but Viable Option
In some industries, competitors may agree to a truce by adding each other’s branded terms as negatives. This practice is most common in legal and regulated sectors, where the stakes are higher. While it’s unlikely for most advertisers, it’s worth exploring if you have established relationships with competitors and see mutual benefit in avoiding branded bidding wars.
When to Accept It as a Cost of Doing Business
Not every instance of competitor bidding warrants action. Sometimes, it’s best to accept branded bidding as part of the landscape and focus on optimizing your campaigns. Factors to consider include:
- Impact on Performance: If branded CPCs remain stable and your conversion rates are strong, intervention may not be necessary.
- Opportunity Cost: Diverting resources to combat competitor activity may not yield the same ROI as focusing on broader campaign improvements.
- Industry Norms: In highly competitive verticals, branded bidding is often unavoidable. Instead of fighting it, channel your energy into maximizing the value of your traffic.
Key Takeaways
Competitors bidding on your terms is an unavoidable aspect of paid media, but it doesn’t have to derail your campaigns. By staying informed, responding strategically, and focusing on what you can control, you can mitigate the impact and maintain strong performance.
To recap:
- Use Auction Insights and Search Terms Reports to monitor competitor activity.
- Adjust your ad copy to reinforce your brand’s identity and value.
- Evaluate CPC fluctuations and decide when intervention is necessary.
- Consider conquesting campaigns to gain insights and level the playing field.
- Leverage exclusions and content rules to navigate visual placements effectively.
- Accept branded bidding as part of the landscape when it’s not worth the fight.
By adopting a proactive, measured approach, you can turn competitor bidding into an opportunity to refine your strategy and build a stronger paid media presence.
