Recently I was asked if there was any recourse for a business whose name was being used by a competitor in Google AdWords. Basically, this particular business was concerned that a Google search for their business name returned their competitor in the number two paid listing. Certainly not a very good thing for driving traffic to your site and business. So what can businesses do to combat this issue?

The only real way to address this is if your name is trademarked. Google AdWord recognizes trademarks and will not allow competitors to bid on trademarked names. They have procedures in place for companies to file any such violations. If “Your Product/Business Name” is trademarked then you can certainly pursue this course by filing a compliant with Google.

If you do not have a trademarked name then Google allows bidding on competitors names just like any keyword. That means the onus is on you to protect your business name. One way to combat this is to price the competitor out of the market by bidding 10-20 times higher than them. It could prove useful as a marketing strategy too, because having a paid placement appear alongside an organic result can be a powerful incentive in driving traffic. Another way to combat this is through a “gentleman’s agreement” of sorts. Ask your competitor to stop the practice and promise them that you won’t buy their name as keywords either. This may or may not work.

Other than that, there is little recourse. Of course you can take solace in the fact that over 70% of users do not click on paid listings but prefer organic results. Most people also look at the URL before they click through and so if they were trying to reach you they don’t see the point in clicking just because the title says your name but your URL doesn’t. So, in the long run it may not be hurting your business in any significant way.

One way to NOT address this issue is by clicking on the ad as a way of draining your competitors AdWord budget. Not only is this unethical but you will be committing click fraud. If your competitor finds out (which they very well could, by looking at their server log files) and reports it to Google, you can say good by to any organic or paid listings on Google for some time to come.

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  • Seo much
    easier to work and most importantly allows you to select the appropriate sites
    in many ways. This is really the desired application. I just can not imagine
    working without it.
  • What can I do if they are also using our internet site addresss as an AdWord.Fantastic topic, keep up the good work
  • Deb
    There's a competitor of mine that is using their name (one letter addition from my name) on the finished products that goes to consumers but uses MY actual website as theirs. What can I do?
  • indu_sharma
    Hi there, this is quite convincing stuff, but you might also wana hit http://www.adwordsnemesis.com for more info on Adwords Auction, AdWords Campaign, Adwords Keyword Tool, Adwords Management...
  • Guest
    What can I do if they are also using our website addresss as an AdWord
  • It can be a legal issue, best method to use a competitors name would be to:
    1) Break-up: For e.g. if the name is Adwords, you can use it as "ad-words", 2 different words, different meaning, but still same for the searcher.

    2) Misspell it purposely: For e.g. adwords could be addwords or adwards...

    Generally, some users on other forums have said that until the other company takes notice, you can rake in quite a few clicks! :D
  • Shailesh Ghimire
    Do you have any sites I can go to see some of these numbers in detail? I'd be very interested if you could share. Thanks.
  • Singhautoworld
    www.singhauto.net is using our name singh auto world as adworrd
  • update
    the # is now 60% organic to 40% PPC, not 70%.
    more and more are going to the PPC
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