Google Ads Competitor Campaigns: Boost Your Market Share the Right Way

When executed correctly, bidding on your competitors' brand names in Google Ads is a powerful strategy to increase your market share. However, competitor campaigns come with a BIG warning: if not done right, they can waste a significant amount of money.

In this blog post, we’ll guide you through the correct approach to using competitor campaigns in Google Ads, helping you maximize your return on investment (ROI) while minimizing wasted spend.

❌ Stop Wasting Money With These Google Ads Mistakes!

What Are Competitor Campaigns in Google Ads?

Competitor campaigns are typically a “last ditch effort to get a sale” or a “hail Mary pass.” The user searching for your competitor’s name either:

1. Knows and trusts that brand.
2. Sees the brand as the market leader with strong brand/product association.

For example, Nespresso is synonymous with capsule coffee machines because they were first to market. Similarly, people might use "Nespresso" to refer to pod coffee in general. While I personally find Nespresso to be less than appealing (like swamp water masquerading as coffee), the point is clear.

With this understanding, you should expect the following with competitor campaigns:

• Higher CPC (Cost Per Click) compared to brand or generic traffic.
• Higher cost per conversion.

Despite these higher costs, competitor campaigns can be a great way to increase your market share if you already have profitable Google Ads campaigns. Here are the top 4 strategies for creating effective and profitable competitor campaigns.

1. Create Separate Campaigns for Competitor Ads

Run competitor campaigns in a separate campaign. This allows you to control the budget and bidding strategies.

• Control the Budget: Set a specific budget for competitor campaigns, like 15% of your total Google Ads budget.
• Adjust Bidding Strategies: Use a different CPA (Cost Per Acquisition) target or bidding strategy.

Ensure your other campaigns are not spending on competitor brand traffic by adding your competitors' brand names as negative keywords. Regular search term audits will help you avoid unnecessary spending.

For more tips, check out my optimization checklists for both eCommerce and service-based businesses. [Link in description]

2. Use Separate Ad Groups for Each Competitor Brand

Create separate ad groups for each competitor you want to target. For instance, if you have three competitors, your structure should be:

• 1 x Competitor Campaign
  • 3 x Separate Ad Groups (one for each competitor)

This structure allows you to track data per competitor, helping you identify which competitor is costing more and which is driving more conversions.

3. Highlight Your Unique Selling Points (USPs)

Competitor campaigns have higher conversion costs because you're trying to convert someone searching for your competitor. The best way to convert competitor traffic is by highlighting clear USPs of your product or service over your competitors.

For example, I once ran ads for a baby hearing product that faced competition from copycat products. We emphasized:

• Original Brand Status: Using terms like “The Original” or “First” in our ad copy.
• Unique Safety Certifications: Mentioning that our product was the only one that passed safety tests in both the USA and Europe.

This approach helped us achieve a ROAS (Return on Ad Spend) of 250%, resulting in profit while increasing market share.

Your USPs should be reflected in both your ad copy and landing page. Categories to consider include:

• Pricing: Do you offer a better price?
• Policies: Do you provide better warranties or return policies?
• Product/Service Quality: Do you have proof of better quality, like “20% stronger” or “30% faster” than competitors?
• Local Product: If your products are locally made or owned, emphasize this in your marketing.

4. Implement a “Target Impression Share” Bidding Strategy

I recommend using a “target impression share” bidding strategy for competitor campaigns. Here’s why:

• Maximize Visibility: The goal is to get your ads seen. Target impression share allows you to set where you want your ads to appear (anywhere on the page, top of the page, or absolute top of the page).
• Control CPC: Set your desired CPC to manage costs effectively.

Using max conversion or conversion value strategies can further increase CPC costs, which is undesirable given that competitor campaigns already have higher CPCs.

By following these strategies, you can run effective and profitable competitor campaigns in Google Ads, increasing your market share without wasting your budget. Remember, the key is to control your spending, highlight your unique strengths, and use the right bidding strategy to maximize your campaign's impact.