Should I run a competitor campaign on Google Ads?

Let's talk about competitor ad campaigns. Are they a good idea? 

By Scott Ingram. Director, Helium Marketing.

A competitor campaign is a Google Ads campaign that intentionally shows your Google Ads to your competitor's audience. This is done by strategically placing ads for your business in front of people who are searching for the name of your competitor. The idea is that if someone is searching for your competitor, they may be interested in your business too and "convert" to you.

We're often asked to do this by clients. After all, marketing is competitive and we're all competing for the same clicks anyway. However, as you'll read throughout this article, while we can run a campaign like this for your business, it is unlikely to work and we don't recommend it.

Ethical hesitations 

There is a question around ethics with this type of approach. Is it considered a bit sneaky? Maybe. But at the end of the day, Google is an auctioning system and we're all bidding for the same users who need a service. It is also a widely known and used campaign tactic, so it seems a campaign like this is in keeping with the nature of the platform.

Effectiveness 

Regardless of how you feel about the ethics of this, Helium would argue it really isn't an effective strategy at all. There are two main reasons for this.

First, we need to look at the search intent of the user. If a person directly types a competitors name, chances are they are committed to contacting that company. They may be loyal to that company already, or have received a personal recommendation to choose them. In this case, they're unlikely to swap to you. Instead, you'll get a lot of calls from people who think they have called your competitor, which creates a confusing dynamic. These calls usually these resemble,"Sorry I've called the wrong number" conversations more than genuine enquiries.

Second, although Google Ads is a paid ads platform that allows you to buy your way to the top, Google Ads has a built in quality check which penalises the advertiser for pursuing irrelevant words. This is referred to as a "quality score" and it's a rating from 1 to 10 that Google gives your campaign (more specifically, each keyword you target). Generally, you'll attract a low quality score for targeting a competitor, as Google knows you aren't that company and therefore not a good match. This means you will have to pay dearly for this type of strategy.

LeadsBridge sums it up nicely, "Not only does the result of this assessment affect where your advertisement is placed, it will also dictate your Google Ads’ cost. A high-quality score can lower the average CPC by up to 50%. However, a poor one can increase prices by up to a staggering 400%."

An alternative strategy

That being said, if you were really keen to try something like this one possibility is to go with an "Alternative" strategy. For example, targeting keywords with "<competitor name> alternative" so that you are appealing to people who are directly searching for a company like yours. This will deal with the objections raised above, however it will only work when there are enough people searching these terms. This strategy is particularly popular in the software and technology space.

Need help with Google Ads?

Unless you are wanting to pay top dollar for time-wasting calls, we'd suggest steering clear of this tactic unless you modify it with a "alternative" approach. Either way, we can help you with an effective Google Ads campaign — in fact, Google Ads is one of the main digital marketing services we offer. Start the conversation here.