Competitor Targeting in Google Ads: Steal Market Share Strategically

The Qualified Prospect Advantage

Traditional Targeting	Competitor Targeting
May or may not need your product	Already demonstrated need by visiting competitor
Might not be ready to buy	Actively shopping right now
Haven't validated intent	Have budget allocated
May need education	Understand the category

Result: Much higher conversion rates because you're intercepting prospects at the bottom of the funnel.

The Competitive Arbitrage Opportunity

If your offering is genuinely superior (better quality, pricing, features, service, guarantees), then competitor customers are ideal targets—they're settling for an inferior alternative simply because they haven't discovered you.

Your Goal: Show them the better option at exactly the moment they're making a decision.

The Market Share Shift

Every customer you acquire from a competitor represents a 2x impact:

• +1 customer for you (revenue gain)
• -1 customer for them (competitor revenue loss)

This compounds over time as you build market position while simultaneously weakening competitors.

Step-by-Step Implementation

Step 1: Access Audience Manager

• Log into Google Ads
• Click Tools (wrench icon)
• Under "Shared Library," select Audience Manager

Step 2: Create Custom Segment

• Navigate to "Custom Segments"
• Click the blue (+) button
• Select "Create Custom Segment"

Step 3: Name Your Audience

Use descriptive names:

• "Competitor Targeting - [Competitor Name]"
• "Sneaky Competitor Targeting - Premium Grocers"
• "[Industry] Competitor Browsers"

Step 4: Configure Targeting

Select: "People who browse types of websites"

In the URL field, enter competitor website addresses:

• tesco.com
• sainsburys.co.uk
• Add as many competitor URLs as relevant

Step 5: Save and Activate

Click "Save" and apply to campaigns.

Where to Apply

• Performance Max: Most effective—serves across YouTube, Display, Gmail, Discover
• Display Campaigns: Banner ads across millions of websites
• Video (YouTube): Video ads with competitor messaging
• NOT available for: Pure search campaigns (use keyword targeting instead)

The Direct Confrontation Approach

Instead of generic value propositions, directly mention competitors by name and explain why you're better.

Example Ad Copy (Grocery):

"Tired of Tesco's Quality?"

Waitrose offers superior produce, premium meats, and exceptional customer service—at prices you'll love.

Shop Waitrose today and taste the difference.

Example Ad Copy (B2B Software):

"Frustrated with [Competitor]'s Limited Features?"

[Your Product] includes [Feature A], [Feature B], and [Feature C]—all standard, not add-ons.

Switch today and get 3 months free.

Example Ad Copy (Service Business):

"[Competitor] Let You Down?"

We guarantee [specific outcome] or you don't pay. 500+ five-star reviews prove we deliver.

Free consultation—see the difference yourself.

Why This Works

• Google Recognizes Intent: When your ad mentions a competitor, Google preferentially serves it to people interested in that competitor
• Acknowledges Pain Points: Mentioning competitors implies you understand customer frustrations
• Creates Comparison Framework: Directly positions you as the superior alternative
• Reduces Search Friction: Customers don't need to research—you're presenting yourself as the alternative

Identify Your Core Advantages

Better Quality:

• "Premium ingredients, not mass-market fillers"
• "Hand-crafted, not factory-produced"
• "Enterprise features at startup prices"

Better Price:

• "Same features, 40% less cost"
• "No hidden fees—what you see is what you pay"
• "Price match guarantee + 10% discount"

Better Features:

• "Includes [Feature X] that [Competitor] charges $500 extra for"
• "Built-in [Integration] vs. [Competitor]'s paid add-on"

Better Service:

• "24/7 live support, not chatbots"
• "Dedicated account manager, not ticket system"
• "30-day money-back guarantee vs. [Competitor]'s 7-day"

Better Results:

• "Customers see 2x better results than [Competitor]"
• "Proven track record: [specific metric]"
• "[X%] customer retention vs. industry average"

When to Be Aggressive vs. Subtle

Use Aggressive Callouts	Use Subtle Targeting
Clear, demonstrable superiority	Industry norms discourage attacks
Competitors have poor reputations	You're a market leader
You're a challenger brand	Legal concerns exist
Legal/ethical constraints allow it	Advantage is nuanced

Premium Brands vs. Mass-Market

Example: Waitrose vs. Tesco/Sainsbury's

Opportunity: Mass-market customers who would appreciate premium quality if they understood the value.

Messaging: Focus on quality, ingredient sourcing, taste, freshness, shopping experience.

"Discover why UK families are switching from Tesco to Waitrose. Premium quality at prices that might surprise you."

Challenger Brands vs. Market Leaders

Example: Startup SaaS vs. Established Enterprise Platform

Opportunity: Customers frustrated with incumbent's pricing, complexity, or poor service.

Messaging: Highlight simplicity, transparent pricing, responsive support.

"Paying $5,000/month for [Incumbent]? Get the same power for $500/month. No setup fees, no contracts."

Local Businesses vs. National Chains

Example: Independent Coffee Shop vs. Starbucks

Opportunity: Customers who value local, artisanal, community-focused businesses.

Messaging: Emphasize local ownership, unique offerings, community involvement.

"Skip Starbucks. Support local. Fresh-roasted beans, handcrafted drinks, and a neighborhood that knows your name."

Service Providers with Better Guarantees

Example: Plumber with Strong Warranty vs. Competitors

Opportunity: Customers worried about quality and accountability.

Messaging: Lead with guarantees, credentials, reviews, risk reversal.

"Unlike [Competitor], we guarantee our work for 2 years. 500+ five-star reviews. If you're not satisfied, we'll fix it free."

Key Metrics to Monitor

Audience Performance Comparison:

• Segment reporting by audience
• Compare "Competitor Custom Segment" to other audiences
• Track conversion rate, CPA, ROAS by audience

Metrics to Track:

Metric	What It Tells You
CTR by audience	Message resonance with competitor customers
Conversion rate	Quality of intercepted traffic
CPA vs. other audiences	Cost efficiency of competitor targeting
ROAS	Revenue impact of strategy

Optimization Tactics

• Test multiple competitors: Create separate audiences for each major competitor
• Compare performance: Some competitors' customers may convert better than others
• Refine messaging: Test different competitive angles (price vs. quality vs. service)
• Exclude non-performers: If certain competitor audiences don't convert, remove them

Legal Considerations

• You CAN mention competitors by name in Google Ads
• You CANNOT make false claims about competitors
• You CANNOT use competitor trademarks misleadingly
• Ensure all comparative claims are factually accurate