A Search That Could Cost You More Than Your Advertising Budget
Imagine you’re launching a new Google Ads campaign. You know one of your competitors dominates the market and thousands of potential customers search for their business every month, so you decide to bid on your competitor’s business name as a Google Ads keyword. The logic seems simple: if someone is already looking for a similar product or service, why not introduce them to your business as another option?
But before you click “Publish Campaign”, an important question arises: Is it actually legal? Many business owners assume the answer is simply yes or no, but the reality is more nuanced.
South African law does not automatically prohibit businesses from bidding on a competitor’s trade mark as a Google Ads keyword. However, that doesn’t mean every campaign is free from legal risk. Much depends on how the advertisement is presented, whether consumers are likely to be confused and the specific circumstances of each case.
Understanding this distinction is important before building a digital marketing strategy around competitor keywords. What may seem like a clever advertising opportunity could carry risks if it isn’t approached carefully.
Why This Matters
Google Ads can be one of the most effective ways to attract potential customers, particularly when people are actively searching for specific products or services. However, businesses also have a responsibility to market themselves fairly, and understanding the difference between healthy competition and conduct that could mislead consumers can help protect both your marketing investment and your reputation.
This article explains how competitor keywords work, what South African courts have said about the issue, and what businesses should consider before using a competitor’s name as part of their advertising strategy.
How Google Ads Keywords Actually Work
One of the biggest misconceptions about Google Ads is that buying a keyword means you own it. That isn’t how the platform works. Google Ads operates like an auction, where businesses bid on keywords they believe potential customers are searching for. When someone enters a search term into Google, factors such as the advertiser’s bid, advertisement quality and relevance help determine which sponsored advertisements appear.
This means multiple businesses can often bid on the same keyword. For example, if someone searches for “labour consultants Johannesburg”, there is nothing unusual about several competing businesses advertising for that search.
The situation becomes more interesting when the keyword isn’t a general service, but the name of a competing business or its trade mark. That is where many business owners begin asking legal questions.
There Is an Important Difference Between a Keyword and an Advertisement
One of the most important distinctions businesses should understand is that using a competitor’s name as a hidden keyword behind the scenes is not the same as displaying that competitor’s name in the advertisement itself. The keyword tells Google when your advertisement should be considered, while the advertisement tells customers who is actually advertising. These are two very different things.
South African courts have recognised this distinction. In the leading case involving Cochrane Steel Products and M-Systems, the dispute centred on the use of the keyword CLEARVU to trigger advertisements for a competing fencing product. Importantly, the advertisement itself did not use the competitor’s brand name or suggest that the businesses were connected, and that distinction became central to the court’s decision.
For businesses running Google Ads campaigns, understanding the difference between a hidden keyword and visible advertising copy is essential. The legal risks are not necessarily the same, and how a competitor’s name is used can make an important difference.
What South African Courts Have Said
South Africa’s leading case on this issue is Cochrane Steel Products (Pty) Ltd v M-Systems Group (Pty) Ltd, which involved two competitors in the security fencing industry. Cochrane argued that M-Systems had acted unlawfully by bidding on the keyword CLEARVU, a name associated with Cochrane’s fencing products.
The Supreme Court of Appeal considered whether using a competitor’s name as a Google Ads keyword amounted to passing off or unlawful competition. On the facts before it, the Court found that simply purchasing the keyword did not, by itself, amount to unlawful competition or passing off. A key reason was that the advertisement clearly identified M-Systems as the advertiser and did not falsely suggest that its products originated from or were associated with Cochrane. The Court also found insufficient evidence that consumers were likely to be deceived or confused.
This decision is sometimes misunderstood. It did not create a blanket rule allowing businesses to use competitors’ brands however they choose. Instead, it confirmed that each situation must be assessed on its own facts, with the likelihood of consumer confusion remaining one of the most important considerations.
Winning Clicks Should Never Come at the Cost of Trust
Google Ads is designed to help businesses compete for attention, and healthy competition benefits consumers by giving them more choice. However, successful digital marketing should never depend on creating uncertainty about who is actually advertising or making a potential customer believe there is a connection between businesses where none exists.
When someone clicks on your advertisement, they should immediately understand which business they are dealing with. Clear branding, honest advertising and transparent messaging can help reduce legal risk while also building trust with potential customers. In the long run, that trust can be far more valuable than a single click.
Just Because You Can Doesn’t Always Mean You Should
Understanding the legal position is important, but it is only part of the conversation. A better question for business owners is: “Is this the right marketing strategy for my business?”
Successful digital marketing isn’t simply about getting more clicks. It is about attracting the right audience, building trust and turning website visitors into customers. While bidding on a competitor’s trade mark as a keyword may, in certain circumstances, be legally permissible, businesses should also consider the commercial and reputational implications of doing so.
Your marketing should reflect the values of your business. If a campaign creates confusion or leaves customers questioning your credibility, the short-term gain may not be worth the potential long-term impact on your brand.
Before Using a Competitor’s Brand Name, Ask Yourself These Questions
Every Google Ads campaign should have a clear purpose. Before deciding to bid on a competitor’s trade mark, take a step back and consider a few practical questions about whether the strategy is appropriate for your business, your customers and your overall marketing goals.
Will customers immediately know who is advertising?
Your advert should clearly identify your business. Someone clicking on your advertisement should never be left wondering whether they have reached the company they originally searched for.
Clear branding not only reduces the risk of confusion but also helps establish trust from the very first interaction.
Am I offering a genuine alternative?
Healthy competition gives consumers more choice. If your business offers similar products or services and your advertisement accurately represents what you do, your campaign is built on transparency rather than confusion. The focus should always be on clearly explaining the value your business provides, rather than trying to benefit from another company’s reputation.
Does my advert clearly describe my own services?
The strongest Google Ads campaigns don’t rely on competitor names — they rely on relevance. Rather than trying to attract attention through another business’s reputation, focus on creating advertisements that clearly explain what your business offers and why customers should choose you. Clear, honest messaging is more likely to build trust and deliver sustainable results than clever marketing tactics that create uncertainty.
The Strongest Brands Build Their Own Reputation
It is easy to become focused on competitors. If customers are searching for their business, it may seem logical to place your advert in front of those same people. But businesses that enjoy long-term success rarely build their marketing strategy around someone else’s brand. Instead, they invest in making their own business the name customers remember.
That means focusing on the fundamentals that build recognition and trust over time:
- Building a professional website.
- Creating useful content that answers customer questions.
- Improving search engine optimisation.
- Publishing educational blogs.
- Collecting customer reviews.
- Developing a recognisable brand.
When people begin searching specifically for your business by name, you’ve achieved something far more valuable than winning a single click — you’ve earned recognition. That’s the kind of marketing investment that can continue paying dividends for years.
Great Digital Marketing Is Built on Trust
Think about the businesses you choose to work with. Chances are, you don’t make your decision based solely on the first advertisement you see. You compare your options, read reviews, visit websites and look for signs that the business understands your needs and can deliver what it promises. Your customers behave in exactly the same way.
Google Ads may introduce someone to your business, but your website, messaging and reputation are what ultimately influence their decision. The goal should never be to trick someone into clicking; it should be to build enough trust that clicking feels like the obvious next step. Businesses that focus on transparency, relevance and customer experience generally build stronger relationships than those relying on short-term marketing tactics.
A Successful Google Ads Campaign Starts Long Before You Click “Publish”
Google Ads remains one of the most effective ways to reach potential customers at the exact moment they are searching for your products or services. However, the platform works best when it forms part of a broader digital marketing strategy rather than operating on its own.
A successful campaign combines:
- Clearly defined business goals.
- Relevant keywords.
- Honest, compelling advertisements.
- A fast, professional website.
- Helpful content.
- Strong search engine optimisation.
- A positive customer experience after the click.
Each of these elements supports the others. When they work together, businesses are far more likely to attract qualified enquiries rather than simply increasing website traffic.
Build a Digital Marketing Strategy That Supports Long-Term Growth
Whether you’re considering Google Ads for the first time or looking to improve existing campaigns, the goal should always be the same: attract the right audience, build trust and convert visitors into customers.
Understanding how competitor keywords work is only one part of successful online marketing.
Equally important is having a website that clearly communicates your services, content that answers your customers’ questions and a marketing strategy that reflects your brand values.
Chamberlink helps businesses develop practical digital marketing strategies that combine professional website design, search engine optimisation, Google Ads management and content marketing to improve online visibility and generate meaningful business enquiries.
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