Answers

Why does a competitor's ad show up when people search my business name?

Because Google's ad rules allow it. Google's trademark policy says it will not restrict using trademarks as keywords, the search words an advertiser picks. On a trademark owner's complaint, it may restrict a direct competitor using the trademark in the ad text, or an ad that uses it in a confusing, deceptive or misleading way. The ad does not buy better placement in the unpaid results. This is a plain summary, not legal advice.

What Google's trademark policy says

Google's Ads trademark policy says it does not allow ads that infringe trademark rights, but advertisers may use others' trademarks in certain situations; on a trademark owner's complaint, Google may restrict use of the trademark. This is Google's position. This is a plain summary, not legal advice. Its review criteria include:

  • The trademark must be used in the ad, not only on the ad's landing page.
  • Google will not restrict using trademarks as keywords.
  • Google will restrict a trademark used in an ad from a direct competitor, and ads that use it in a confusing, deceptive or misleading way.
  • Google will not restrict ads that use the term descriptively in its ordinary meaning.

What Google's policy usually allows

So a competitor's ad that shows on a search for your name, with the competitor's own name in the ad, is the kind of use Google says it will not restrict. As general advice, a name made of ordinary words, such as a trade and a town, is harder still, since Google will not restrict a term used in its ordinary meaning; the related answer on putting keywords in your business name covers naming.

The ad does not move your unpaid result: Google says "no one can buy better placement in organic Search results", as the related answer on whether Google Ads help your free rankings covers.

What an owner can do

  • See who is behind the ad: Google says you can always learn more about who is behind the ads you see on Search, and that its Ads Transparency Center is a searchable hub of ads from verified advertisers.
  • If it uses your trademark in the ad text: Google says it accepts complaints only against specific advertisers identified by their web addresses, in the countries and industries where the owner has shown trademark rights, and its Ads Trademark Troubleshooter points owners to the right form.
  • If it pretends to be your business: Google's misrepresentation policy does not allow impersonating other brands or businesses in ads to hide one's identity or imply connections. You can report an ad from its More or Info menu for Google's Trust & Safety team to review.
  • Whether your name is a trademark you can enforce, or worth registering, is a question for a trademark lawyer.

What it means for your leads

As general advice, people who search your exact name usually know you already, so the ad is aimed at customers you have earned. Some owners run an ad on their own name too; your lead records show whether that pays.

In those records, a customer who searched your name and clicked your free result counts as search, and one who clicked your own ad counts as paid. Customers who type your address skip the results page; the related answer on what direct traffic means covers those visits.

Sources

  1. Google Advertising Policies Help, "Trademarks"
  2. Google Advertising Policies Help, "Google Ads Trademark Troubleshooter"
  3. Google Advertising Policies Help, "Misrepresentation"
  4. My Ad Center Help, "Report an ad"
  5. Google, "Ads on Search - How Google Search Works"

Related answers

SEO for service businesses

Get found on Google by the people already looking for what you sell, in the places you serve, and see which searches turned into inquiries.