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How Bidding on Your Competitors Brand Names Wastes Ad Budget
Description
Episode 38 of Performance Marketing with Fexingo dives into the costly trap of competitor brand bidding. Lucas and Luna reveal how bidding on rival brand terms often drains ROAS, citing a DTC skincare case where the tactic generated a 2.1 ROAS versus 6.8 on branded terms. They walk through the data: high click-through rates but abysmal conversion rates, inflated cost-per-click, and the hidden problem of accidental brand-search overlap. Lucas shares a simple campaign structure fix—segmenting competitor terms into a separate campaign with conservative bids and strict negatives—that cut wasted spend by 40 percent for a mid-market supplement brand. Luna challenges whether competitor bidding ever works, and they debate scenarios like conquesting in categories with low loyalty. The episode also touches on platform-specific quirks: Amazon PPC brand defense, Google Ads bidding wars, and the ROAS leak when your own brand bids are cannibalized. No fluff, just actionable performance marketing strategy.