Bidding on competitor branded keywords is a strategy that can be as perilous as it is powerful. 

When executed well, it can position your brand as a compelling alternative and capture high-intent traffic that’s already exploring solutions in your category. 

But when mismanaged, it can drain budgets, spark bidding wars, and paint a huge unwanted target on your back. 

On a recent episode of the Paid Media Lab podcast, we spoke to PPC expert Sophie Logan about her approach to running high-performance competitor campaigns across paid search. 

Sophie is the PPC lead at Beauhurst, a leading private company database tool for the UK market. Specializing in B2B and SaaS brands, Sophie has many years of experience in the high-performance marketing space under her belt, and regularly shares her experience as a speaker at numerous conferences and industry events. Sophie is also a regular contributor to Search Engine Land, making her a highly influential voice in the PPC space.

We could think of no one better to discuss competitor bidding than Sophie, so we had to get her on the podcast to outline the key strategies and considerations required to ensure success from the practice. Sophie also offered her insights into how to pick the right battles when it comes to competitor bidding, while also generating a good return on ad spend. 

Watch the full podcast below, or read on to learn more about competitor keyword bidding strategy and get the key insights from our session with Sophie. 

Timestamps:

0:00 - Intro

03:03 - When to bid on competitor brand names, and when to avoid it

05:50 - Why competitor keyword bidding requires a different approach

06:56 - How to decide which competitors to target

08:35 - Step-by-step process for setting up competitor bidding campaigns

09:49 - Being creative with ad copy when you can't use competitor names directly

12:24 - Recommended bidding strategy

13:35 - How to create winning landing pages for competitor campaigns

15:10 - Key metrics when assessing competitor bidding campaign performance 

17:00 - Cases where competitor bidding can backfire

17:20 - Sophie’s response when she found out a competitor violated an agreement to stop bidding on each other

18:24 - Using forums like Reddit to research competitor complaints and guide your campaigns

20:32 - Key optimizations for competitor bidding campaigns

22:10 - Sunk cost fallacy

22:32 - Wrapping up / outro

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For all of Sophie’s tips, tricks, and insights, watch the full episode of the Paid Media Lab podcast above – and make sure to subscribe to the Lunio YouTube channel to watch full episodes of the Paid Media Lab podcast, featuring insights from top PPC professionals.

Alternatively, follow the podcast on Spotify, Apple Podcasts, or Amazon Music to get new episodes delivered straight to your feed. 

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What is competitor keyword bidding?

At its core, competitor keyword bidding involves targeting your rival's brand names as keywords in your paid search campaigns. The aim is simple: to appear in search results when potential customers are looking for your competitors, offering them an alternative. As Sophie puts it, it's essentially your brand saying "Hey, we're over here, have you noticed us? Why don't you see what we can offer you instead of those other guys?".

While it might seem straightforward, this strategy requires careful consideration. It's not just about "poking the bear," as Sophie cautions, but about strategically positioning yourself as a viable—or even superior—option.

When to bid on competitor brand names

Sophie emphasizes that competitor bidding is not a one-size-fits-all tactic. It works best when:

● You offer a comparable or superior product/service: Before diving in, ensure you can offer something that matches or, ideally, surpasses what your competitor is offering. Many campaigns fail because the business doesn't have the ‘clout’ or the product offering to compete effectively.

● You're in a competitive market: This is particularly effective in B2B and SaaS sectors where dominant brands exist, and where customers are open to higher value alternatives.

● You're ready for a potential bidding war: Be prepared for competitors to bid on your brand name as well. This can escalate costs and create "bad blood" between businesses. So before engaging in any aggressive branded keyword bidding, ask yourself if you’re ready for any potential battles that may come with it. 

● You want to get your name out there: Some businesses might use competitor campaigns simply for the exposure, even if they don't get direct conversions.

When to avoid bidding on competitor keywords

Whilst competitor keyword bidding is generally recommended (as long as you’re doing it correctly and ethically), there are some situations where you might want to steer clear of competitor bidding:

● If you lack a competitive edge: If your product or service isn't as strong as your competitors, you risk wasting your ad spend.

● If you have a very limited budget: You could easily spend your entire budget on competitor keywords without a proper strategy.

● If you want to avoid any and all potential conflict: If you are concerned about ‘poking the bear’, it's best to tread carefully. You should consider the implications before starting a bidding war.

Why competitor campaigns are unique

Competitor campaigns require a different approach than other paid search campaigns for a few key reasons:

● Budget considerations: It's easy to spend your entire budget on competitor names alone. So, being highly strategic to avoid overspending is a must.

● Bidding strategy: Don't just aim for 100% impression share in the first position for competitor keywords. This can be extremely expensive.

● Ad copy limitations: You can't use competitor names in your ad copy, which requires you to be creative and persuasive. (Skip to 9:49 in the podcast for Sophie’s full rundown of this).

A step-by-step approach to setting up competitor campaigns

Sophie recommends the following process for setting up effective competitor branded keyword campaigns:

1. Identify your target list: Start by determining who your direct competitors are. Your sales team or business development team may be able to help you identify them.

2. Create a dedicated campaign: Set up a specific campaign called "Competitors," and then create separate ad groups for each competitor.

3. Tailor your keywords and ad copy: Customize your keywords and ad copy for each competitor, making it specific to them rather than using a one-size-fits-all approach. You should highlight what makes you better than the competitor you are targeting.

4. Craft persuasive ad copy: Avoid negative language. Instead, craft ad copy that is informative and proves why you're the better choice. Don't just say you're better, prove it to them.

5. Use appropriate bidding strategies: Opt for a max clicks bid strategy with a max CPC.

6. Start small: Be conservative with your budget and build up your campaigns as you see results. Avoid large budgets at the start, as competitor bidding can get expensive quickly.

7. Create PPC-specific landing pages: Direct traffic to landing pages that address why you're better than your competitor, rather than the generic homepage.

Key competitor keyword bidding strategy considerations

Before getting started with competitor keyword bidding, it’s essential to weigh the strategic factors that can make or break your campaign. 

Start by analyzing the competitive landscape. Are the competitors you’re targeting truly relevant alternatives, or will their audience view your brand as a mismatch? Budget allocation is another critical piece; bidding on branded terms can be costly, so ensure you’re prepared for potentially high CPCs while maintaining profitability. 

Make sure you’re ready to closely monitor performance metrics like quality score and conversion rates in order to optimize campaigns for efficiency. In our discussion, Sophie also recommended the following key considerations:

Avoid Target Impression Share

Don't aim for the highest impression share on your competitor's name, as it can lead to excessive spending.

Max Clicks with Max CPC

Use a max clicks bid strategy, but implement a max CPC limit to avoid overspending.

Be Realistic with Your Budget

If you have a limited budget, ensure it's not better spent on your own brand campaigns rather than chasing competitors.

Researching the competition

When it comes to researching competitors and positioning your unique strengths vs. the competition, try exploring the following to enhance your competitive bidding strategies:

● Reddit and niche forums: Look for complaints and pain points about your competitors to guide your keywords and landing page messaging.

● Review and rating sites: Use review sites like G2 and Capterra to understand customer complaints about your competitors. Then, use this to highlight how you offer better service in your ad copy.

Competitor keyword landing page best practices

When bidding on competitor branded keywords, you’ll ideally want clicks to land on unique landing pages, specific to the competitor you’re targeting. When done correctly, this doubles-down on your competitive advantages and can vastly improve conversion rates. 

"I’m biased. I like a PPC specific landing page for your competitor campaigns. I find sending them to the homepage is just a little bit of a wasted opportunity."
Sophie Logan

Here’s everything you need to keep in mind when it comes to competitor keyword landing pages: 

● Show, don't just tell: Highlight the advantages of your product or service, and prove that you are better rather than just saying it. You can compare your features to those of your competitors if you back up your claims with facts.

● Maintain respect: Avoid inflammatory language and always be respectful to your competitors.

Key metrics to watch

Unique, powerful, yet with a greater potential for consequence if you miss the mark – competitor keyword bidding campaigns to be monitored, analysed and refined closely and continuously to ensure high performance. When it comes to analyzing your campaigns, keep the following metrics in mind: 

● Lead to sale rate: Focus on the quality of leads and whether they convert into sales. It's important to see if these people are of high value.

● Conversion rates: Monitor conversion rates to make sure they are performing well.

● Return on investment (ROI): Ultimately, you need to ensure your campaigns are generating revenue. If after 2-3 months, the campaign is not generating revenue, you might want to pause it and rethink your strategy. 

Optimizing competitor keyword bidding campaigns

Sophie recommends the following to optimize your campaigns:

● Refine keywords: Don't assume you know what people are searching for. Look for long-tail keywords that people are actually using.

● Regularly review competitors: If a competitor is not performing well, pause their ad group and focus on other competitors.

● Know when to stop: If a campaign is clearly not working, stop running it. Don't let sunk cost fallacy prevent you from cutting your losses.

Final thoughts

Competitor keyword bidding is a complex strategy with many nuances. As Sophie explains, it's about strategically positioning yourself and being ready for any potential battles. 

Remember to always provide value, keep an eye on the metrics, and be ready to adapt your strategy as needed.

By implementing this strategy effectively, and by focusing on the right goals, competitor keyword bidding can provide fast-track improvements to your overall PPC results. 

During our chat, Sophie mentioned that competitor keyword bidding and landing pages in general are some of her favorite topics, and ones she particularly enjoys discussing with other performance marketers on LinkedIn. We highly recommend giving Sophie a follow to stay up-to-date with tips, tricks, and insights to help your competitor keyword campaigns thrive. 

Watch the podcast above for the full context on everything we’ve discussed here, and for additional tips & tricks not mentioned in the recap. 

Subscribe to the Paid Media Lab podcast on YouTube, Spotify, Apple Podcasts, Amazon Music or wherever else you get your podcasts for more impactful discussions on all things paid media–featuring leading voices from the PPC industry.

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