How to Handle Competitor Bidding in Google Ads Success

You’re running your Google Ads campaign, everything seems peachy, and suddenly, you notice your competitors are bidding on your brand keywords. It’s like setting up a lemonade stand, only to have someone plop theirs right next to yours with a flashing neon sign. Frustrating, right? But don’t worry; we’ve got your back. Let’s dive into how you can handle competitor bidding in Google Ads without losing your cool or your money (or your customers).

The Basics of Google Ads Bidding

Before we tackle the competition, let’s ensure we’re all on the same page about how Google Ads bidding works.

How Bidding Works

Google Ads operates on an auction system. Every time someone searches, an auction determines which ads appear and in what order. Your bid, combined with your Quality Score (more on that later), influences your Ad Rank. So, it’s not just about throwing money at the problem—Google values quality too. More on how Google Ads work.

Importance of a Solid Bidding Strategy

Having a well-thought-out bidding strategy is like having a game plan before hitting the field. It ensures you’re not overspending while still getting those coveted clicks. Plus, with the right strategy, you can outmaneuver competitors without necessarily outbidding them.

Competitor Bidding: An Overview

Alright, let’s talk about the elephant in the room: competitors bidding on your keywords.

What is Competitor Bidding?

Competitor bidding, also known as “conquesting,” is when rivals bid on your brand terms to capture traffic that was initially intended for you. It’s like your neighbor trying to woo your party guests with promises of better snacks.

Why Competitors Bid on Your Keywords

Why do they do this? Simple: visibility and poaching potential customers. By appearing when someone searches for your brand, they hope to divert traffic to their site. Sneaky, but it’s a dog-eat-dog world out there.

Strategies to Handle Competitor Bidding

Now, let’s arm you with some tactics to counteract those pesky competitors.

Improve Ad Relevance

Ad relevance measures how closely your ad copy aligns with the search intent of users. If your ad is highly relevant, Google rewards you with a better Quality Score and potentially lower costs per click. To improve ad relevance:

• Use Keyword Insertion: Incorporate keywords from your ad group into your headlines and descriptions to match user queries more closely. To do so, when creating or updating an Ad, in one of the headline field start typing “{…”. This will open a dropdown menu where you can select Dynamic Keyword Insertion. Keep in mind that Google will try to replace the keyword placed in there by one of the keywords in your ad group, matching the user search. If it can’t, it will use the keyword you placed in the field.

• Match User Intent: Ensure your ad copy directly addresses what the user is looking for. If someone searches for “real estate advisor miami” an ad that says “Contact a real estate advisor in Miami today -Free Consultation” is more relevant than one that just says “Real Estate Florida”.

• Create Specific Ad Groups: Instead of lumping all your keywords into one ad group, break them down into tightly themed groups. This allows for more precise ad messaging.
• Update Ads Regularly: Keep your ad copy fresh and in tune with current trends, promotions, or user behavior changes.

Improve Your Expected Click-Through Rate (CTR)

Expected CTR is Google’s estimate of how likely users are to click on your ad based on past performance and relevance. Improving your expected CTR can significantly boost your ad rank without increasing your bid. Here’s how to enhance it:

• Write Compelling Headlines: Your headline should grab attention and spark curiosity. Use numbers, power words, and clear benefits. Example: “Save 30% on Running Shoes – Limited Time!”. Our guide will help your improve your copywriting for Google Ads.
• Include a Strong Call-to-Action (CTA): Encourage users to take action with phrases like “Shop Now,” “Get Your Free Quote,” or “Try It Today.”
• Highlight Unique Selling Points: What makes you better than competitors? Mention free shipping, a money-back guarantee, or exclusive deals.
• Utilize Ad Extensions: Adding sitelinks, callouts, and structured snippets can make your ad more appealing and clickable.
• A/B Test Different Variations: Run multiple ad versions to see which headlines, descriptions, and CTAs get the best CTR.

By focusing on ad relevance and expected CTR, you can create high-performing ads that not only compete effectively but also lower your costs in the long run. We have created a guide on how improve your CTR, just for you!

Improving Your Landing Page

A great ad can get clicks, but a great landing page converts those clicks into customers. Here’s how to make sure your landing page is working in your favor:

• Match Ad Copy to Landing Page Content: If your ad promises “50% off running shoes,” ensure the landing page showcases that exact offer.

• Keep It Simple & Fast: A cluttered, slow-loading landing page can drive visitors away. Optimize for speed and provide a clean, easy-to-navigate layout.

• Use Clear Calls-to-Action (CTAs): Guide visitors toward the desired action, whether it’s making a purchase, signing up, or requesting a quote.

• Make It Mobile-Friendly: Many users browse on their phones, so ensure your landing page is fully optimized for mobile devices.

• Leverage Social Proof: Adding testimonials, reviews, or trust badges can increase credibility and encourage conversions.

Below is a good generic landing page layout that you can use to create your own landing page. Make sure you tweak it to match your ad copy and search intent as much as you can.

Focusing on Long-Tail Keywords

Long-tail keywords are specific, longer phrases that users might search for. While they have lower search volumes, they often lead to higher conversion rates because they’re more targeted. For example, instead of bidding on “running shoes,” you might target “best trail running shoes for women.” This strategy can help you capture niche markets and reduce competition.

Utilizing Negative Keywords

Negative keywords prevent your ads from showing up for irrelevant searches. By refining your negative keyword list, you ensure your ads only appear for searches that matter, optimizing your budget and increasing ad relevance.

Monitoring Competitor Activities

Keep an eye on what your competitors are up to. Tools like SEMrush or SpyFu can provide insights into their bidding strategies, helping you adjust yours accordingly. It’s like peeking into their playbook to better plan your next move.

Collaborating with a Google Ads Agency

Sometimes, it’s best to call in the pros.

Benefits of Professional Management

A reputable Google Ads agency brings expertise, experience, and a fresh perspective to your campaigns. They can:

• Optimize your bidding strategies.
• Provide insights into industry trends.
• Manage and monitor campaigns efficiently.

Choosing the Right Agency

Not all agencies are created equal. Look for:

• Experience: How long have they been in the game?
• Client Testimonials: What are others saying about them?
• Transparency: Are they open about their strategies and results?

Partnering with the right agency can be a game-changer in your advertising efforts. Let us know if you want us to have a look at your Google Ads account, we offer free 30min consultation.

Analyzing Your Competitor’s Data

Using Your Google Ads Dashboard

Your Google Ads dashboard holds a goldmine of competitive insights. Google provides auction insights, which show how your ads compare to competitors in terms of impression share, top-of-page rate, and overlap rate. Here’s how to leverage it:

• Auction Insights Report: Check which competitors are bidding on the same keywords as you and how often they outrank you.
• Impression Share Analysis: If your impression share is low, consider adjusting your bids, improving ad quality, or expanding your budget. That means your competitors are usually winning the race, getting more market shares than you when it comes to having their ads displayed.
• Overlap Rate: This metric tells you how often your ad appears alongside a competitor’s ad for the same search. It’s a good indicator to show you where you might be missing opportunities, and where you are competing well.
• Benchmark CTR & CPC: Compare your performance against industry benchmarks to identify areas for improvement. Pretty straight forward. Guide to your industry’s CPC benchmark.
• Adjust Bidding Strategies Accordingly: If a competitor is aggressively bidding, consider shifting to automated strategies like Target ROAS or Maximize Conversion Value to compete efficiently.

Checking Competitor Ads Using Google Transparency Library

Want to know exactly what ads your competitors are running? Google Transparency Library is your new best friend. This tool allows you to see active and past ads for any brand running Google Ads. Here’s how to use it:

• Search by Advertiser Name: Type in a competitor’s name to see all their active and past ads.
• Identify Their Messaging & Offers: Analyze what kind of promotions, headlines, and CTAs they’re using.
• See Their Ad Formats: Are they focusing on search ads, display, or YouTube? This can give insights into their strategy.
• Monitor Seasonal Trends: If they ramp up ads during certain periods, you can plan accordingly to stay competitive.
• Get Inspiration: Use their successful ad styles as a reference to refine your own campaigns (but don’t copy—be better!).

By leveraging both the Google Ads dashboard and Google Transparency Library, you gain an upper hand in understanding and outmaneuvering competitors in the ad space.

Legal and Ethical Considerations

Just because you can doesn’t always mean you should.

Understanding Policies

Google has guidelines about bidding on competitor keywords. While it’s generally allowed, using trademarked terms in your ad copy without permission can land you in hot water. Always play by the rules to avoid penalties.

Maintaining Ethical Practices

Ethical advertising fosters trust with your audience. Avoid misleading claims or deceptive tactics. Remember, your reputation is on the line.

Getting your Google Ads account banned or suspended can quickly become a nightmare if your business relies heavily on conversion coming from your Ads. Working with a Google Ads Partner Agency can help you avoid these issues, lifting your account suspension faster, having direct contact with support and getting access to new features:

Working with a Google Partner agency like TheAdsgency ensures that you’re getting the best expertise, access to the latest features, and support directly from Google to optimize your campaigns effectively.

Measuring Key Performance Indicators

Focus on metrics like:

• Click-Through Rate (CTR): Indicates how compelling your ads are.
• Conversion Rate: Measures how many clicks turn into actual customers, probably the most important metric to improve for your Google Ads performance.
• Cost-Per-Click (CPC): Helps track if you’re spending efficiently.
• Quality Score: Ensures you’re maintaining relevance and optimizing costs.

Continuous Optimization

The world of Google Ads is constantly evolving, so your strategy should too. Regularly review your campaign performance and make adjustments as needed. A/B testing ad creatives, tweaking bidding strategies, and refining keyword lists can keep you ahead of the competition.

Conclusion: How to Deal With Competitor Bidding in Google Ads

Common Mistakes in Competitor Bidding Strategies (and How to Avoid Them)

Competitor bidding can be a powerful tool for driving traffic, but it’s easy to make mistakes that waste budget and hurt performance. Here are some of the most common pitfalls and how you can avoid or fix them:

1. Bidding Without a Clear Strategy

Mistake: Simply bidding on competitor keywords without a clear plan can lead to wasted budget and low conversions. You might end up attracting the wrong audience or over-spending on keywords that don’t convert.

How to Fix It:

• Set Clear Goals: Decide what you want to achieve (e.g., brand awareness, conversions, etc.) before bidding on competitor keywords.
• Target Specific Keywords: Focus on high-intent competitor keywords that align with your product or service.
• Use Intent-Based Targeting: Instead of targeting every competitor, focus on those whose audience closely matches your target market.

2. Ignoring Quality Score

Mistake: If your ad isn’t relevant to the competitor’s brand keyword, it will have a low Quality Score, leading to higher CPCs and poor performance.

How to Fix It:

• Write Highly Relevant Ads: Make sure your ad copy directly addresses the user’s intent based on the competitor’s brand keyword.
• Match Landing Pages: Your landing page should be relevant to the search term and continue the message from the ad to maintain a high Quality Score.
• Use Dynamic Keyword Insertion: This can make your ads more relevant by automatically adjusting the ad copy to match the search query.

3. Overbidding on Competitor Keywords

Mistake: Trying to outrank competitors at all costs can drain your budget without providing a good return on investment.

How to Fix It:

• Bid Smartly: Focus on strategic bidding. Bid higher on high-converting keywords and lower on those with low conversion potential. This is especialy true for B2B campaigns.
• Monitor Performance: Regularly check the performance of competitor keywords and adjust your bids based on conversion data.
• Use Bid Adjustments: Adjust bids based on device, location, or time of day to optimize your spend.

4. Not Using Negative Keywords

Mistake: Failing to add negative keywords can result in showing up for irrelevant searches, wasting your ad spend and diluting your ad’s relevance.

How to Fix It:

• Review Search Term Reports: Regularly check your search term reports to identify irrelevant queries and add them as negative keywords.
• Use Broad Match Modifiers: These can help prevent showing your ads for unrelated searches while still allowing flexibility in matching keywords.
• Create Negative Keyword Lists: Develop lists of negative keywords that are consistently irrelevant to your business and apply them across campaigns.

5. Forgetting About Ad Relevance

Mistake: Simply name-dropping a competitor’s brand without offering something unique can make your ad seem generic and irrelevant to users.

How to Fix It:

• Differentiate Your Offer: Highlight the unique benefits of your product or service rather than just criticizing the competitor.
• Create a Value Proposition: Focus on what makes your brand stand out—whether it’s better pricing, unique features, or customer service.
• Include Specific Call-to-Action: Encourage users to take action with a compelling CTA that’s relevant to their needs.

6. Neglecting Landing Page Optimization

Mistake: Sending users to a generic homepage instead of a tailored landing page can result in poor conversion rates.

How to Fix It:

• Create Landing Pages for Each Campaign: Design landing pages that are specific to the competitor keyword you’re bidding on, ensuring the message aligns with the ad.
• Focus on User Experience: Ensure your landing page loads quickly, is mobile-friendly, and clearly presents the offer.
• Use Clear and Engaging CTAs: Make it easy for users to take the next step with a strong, obvious call-to-action.

7. Ignoring Auction Insights

Mistake: If you’re not monitoring how competitors are reacting to your bids, you’re flying blind. Auction insights can help you understand how your competition is performing.

How to Fix It:

• Monitor Auction Insights: Regularly check auction insights to see where your competitors are bidding and adjust your strategy accordingly.
• Adjust Your Strategy: If a competitor is consistently outranking you, try adjusting your bid or improving your ad’s relevance.
• Leverage Competitor Data: Use insights to identify gaps in your competitors’ strategies and capitalize on opportunities they might be missing.

FAQ – Google Ads Competitor’s Bidding