Bidding on the competitor – is it worth it?

Bidding on the competitor – is it worth it?

Monday, March 12, 2018

With a finite market space, directly stealing competitor market share clearly has its benefits.

It makes sense, right? If someone is searching for one of my direct competitor terms, they are probably interested in what I have to offer.

What are the positives?

Increased brand awareness

Competitor bidding puts your brand into consideration. It’s a great way of saying “have you heard of us?” This will hopefully highlight your competitive advantage.

High CVRs

Brand searchers tend to be “bottom of the funnel” consumers who have done their research and are looking to buy. This is your chance to steal that sale.

Low CPCs

CPCs tend to be lower than Generic Product of Service keywords, especially if the competition isn’t bidding on their own terms. This can quickly change as the competition reacts to the encroachment.


What are the negatives?

 A possible bidding war

There is nothing stopping your competition turning around and bidding directly back on your terms. When this happens, everyone loses except for Google. CPCs will rise on both fronts and converting your own customers will become harder. If Brand PPC plays an important role in your roadmap, the risk simply isn’t worth it.


Some tips before you get started

Brand bidding – calling a ceasefire

If you find yourself in a bidding war with competition and performance starts to call, reach out to your competitors: they may be willing to call a ceasefire. If it’s not working for you, chance is that it’s not ideal for them either.

Picking the right competitors

Plan carefully who you are going to bid on. If you are a “mid-level” company, bidding on the bid-name competition or your local mom & pop isn’t going to pay off.


All in all, competitor bidding can be a good opportunity for those with the budget and strategy. Plan carefully and you could find yourself gaining a nice bit of market share. If you need any advice contact DAC here.