Introduction
In the competitive landscape of digital advertising, businesses are always looking for ways to gain an edge. One of the most controversial yet commonly used tactics in Google Ads is brand bidding, where a company bids on a competitor’s brand name as a keyword to display ads when users search for that brand.
While this strategy can drive traffic and attract potential customers from competitors, it also raises ethical, legal, and strategic concerns. Brands must understand Google’s rules regarding brand bidding, how competitors leverage this tactic, and how to combat it effectively.
This comprehensive guide will explore:
Google’s policies on brand bidding
What is allowed and what is not
Examples of well-known brands facing brand bidding
Strategies to protect your brand
Key takeaways and an FAQ section
Brand Bidding in Google Ad Podcast
Section 1: Rules and Guidelines for Brand Bidding
1.1 Google’s Trademark Policy
Google Ads allows advertisers to bid on competitor brand keywords, but restrictions exist when using those brand names in ad copy. Google’s trademark policy distinguishes between bidding on a trademarked term and using a trademarked term in an ad:
Bidding on Competitor Brand Names: Google generally permits advertisers to bid on competitor brand keywords.
Using a Competitor’s Trademark in Ad Copy: In most cases, using a trademarked term in ad text without authorization is not allowed.
Exceptions: Some resellers, affiliates, and authorized advertisers may use trademarks under specific conditions.
1.2 Allowed vs. Disallowed Practices
Allowed:
✅ Bidding on a competitor’s brand name as a keyword (e.g., Adidas bidding on “Nike shoes”)
✅ Running comparison ads that do not use the competitor’s name in the ad text
✅ Using dynamic keyword insertion (if it doesn’t violate trademark policies)
✅ Resellers and authorized dealers using a trademark in ad copy with permission
Disallowed:
🚫 Using a competitor’s trademark in ad copy without permission
🚫 Impersonating another brand (misleading users)
🚫 Displaying ads that suggest affiliation when none exists
🚫 Using competitor trademarks in display URLs
Violating Google’s policies can lead to ad disapprovals, account suspensions, or legal action from the trademark owner.
Here are two examples—one that follows Google's rules and one that violates them:
Acceptable Use (Follows Google’s Policies)
Search Query: Nike running shoesAd Text:Title: Looking for High-Performance Running Shoes?Description: Discover our latest collection of lightweight, durable running shoes. Shop now for top performance!URL: www.adidas.com/running-shoes
✅ Why It’s Allowed?
The ad does not use "Nike" in the ad copy.
The competitor (Adidas) is simply bidding on the term "Nike running shoes."
There is no misleading claim or impersonation.
Unacceptable Use (Violates Google’s Policies)
Search Query: Nike running shoesAd Text:Title: Official Nike Shoes - 50% Off Today!Description: Get authentic Nike running shoes at unbeatable prices. Limited-time offer!URL: www.discountshoes.com/official-nike
🚫 Why It Violates Policy?
The ad falsely implies an official affiliation with Nike.
It misleadingly uses the trademarked brand name.
The URL suggests an official Nike site when it is not.
Section 2: Examples of Brand Bidding
2.1 Famous Cases of Brand Bidding
Nike vs. Adidas
Adidas has historically bid on Nike brand keywords to target consumers searching for Nike products. This strategy diverts traffic from Nike’s site to Adidas’s landing pages, increasing Adidas’s visibility. Nike counters this by bidding on its brand keywords to ensure it remains the top result.
Pepsi vs. Coca-Cola
Pepsi has been known to bid on keywords like “Coke” or “Coca-Cola,” attempting to capture search traffic from users looking for Coke products. Coca-Cola combats this by reinforcing its brand through high-quality ad copy, strong branding, and defensive bidding.
Apple vs. Samsung
Samsung has frequently targeted Apple-related searches, running ads that compare Samsung’s features against Apple’s. Apple typically does not bid on competitor terms but instead relies on organic brand strength and customer loyalty.
These cases illustrate how aggressive brand bidding can be and the importance of having a solid defense strategy.
Section 3: Strategies for Brands Facing Brand Bidding
3.1 Monitoring and Detection
Brands must actively monitor competitor bidding. Here’s how:
Google Ads Auction Insights Report – Reveals which competitors are bidding on your brand.
Third-Party Tools – Platforms like SEMrush, SpyFu, and Ahrefs can track competitor ad strategies.
Manual Search Testing – Conduct searches for your brand name to check if competitors’ ads appear.
3.2 Legal Considerations
If competitors violate Google’s policies, brands can take legal action or file trademark complaints:
Submit a Trademark Complaint to Google – If unauthorized use of a trademark occurs, Google may restrict the competitor’s ads.
Cease and Desist Letters – Brands can issue legal warnings to competitors.
Lawsuits – In cases of brand impersonation or misleading advertising, legal action may be necessary.
3.3 Defensive Bidding
Many brands bid on their names to maintain top ad rankings. Though it costs money, it prevents competitors from stealing traffic.
Pros:
✔ Keeps your brand at the top of search results
✔ Prevents competitors from taking traffic
✔ Maintains a strong brand presence
Cons:
❌ Increases advertising costs
❌ Doesn’t stop competitors from bidding on your brand
3.4 Messaging and Differentiation
Even if a competitor bids on your brand name, your ad copy and landing pages can reinforce brand superiority:
Highlight Unique Selling Propositions (USPs) – Showcase what sets your brand apart.
Leverage Ad Extensions – Use site links, callouts, and structured snippets to provide more value.
Optimize Landing Pages – Ensure users landing on your site find what they’re looking for immediately.
Section 4: Key Takeaways
✔ Brand bidding is allowed in Google Ads, but using trademarks in ad text without permission is restricted.
✔ Major brands like Nike, Coke, and Apple face aggressive brand bidding from competitors.
✔ Monitoring tools and Google’s Auction Insights Report help detect competitor brand bidding.
✔ Defensive bidding and strong messaging strategies can help counteract competitor ads.
✔ Legal options exist, including trademark complaints and lawsuits, for policy violations.
✔ Continuous optimization and differentiation are key to maintaining brand authority.
FAQ Section
1. Is it legal to bid on a competitor’s brand in Google Ads?
Yes, it is generally legal and allowed under Google’s policies, but brands cannot use a competitor’s trademark in ad text without permission.
2. How can I find out if competitors are bidding on my brand terms?
You can check Google Ads’ Auction Insights Report, use third-party tools like SEMrush, or conduct manual searches.
3. What should I do if I discover competitors bidding on my brand terms?
Consider defensive bidding, optimize your ad strategy, file a trademark complaint with Google if necessary, or take legal action.
4. Should I bid on my own brand terms?
It’s often a good idea to ensure your brand remains at the top of search results, even if it incurs additional costs.
5. Can I stop competitors from bidding on my brand keywords?
You cannot outright stop competitors from bidding on your brand terms, but you can take measures to minimize their impact through legal actions, defensive bidding, and strong ad strategies.
Conclusion
Brand bidding in Google Ads is a double-edged sword—while it provides businesses with opportunities to capture competitor traffic, it also raises challenges for brand protection. By understanding Google’s rules, monitoring competitor activity, and implementing smart defense strategies, brands can safeguard their reputation and market share.
Staying proactive in managing brand bidding ensures long-term success in digital advertising. Whether through legal action, strategic bidding, or improved ad messaging, businesses must adapt and evolve to maintain their competitive edge.