Quick answer
Trademark bidding, also called brand bidding, means buying search ads on keywords that contain a brand name, whether your own, a competitor's or, for affiliates, the merchant's. On Google Ads, anyone can bid on a trademarked term as a keyword; Google does not restrict trademarks used as keywords. What is restricted is using someone else's trademark in the ad text itself. Affiliate programs usually go further and ban brand bidding unless the advertiser approves it in writing.
What trademark bidding means
A trademark bid happens when an advertiser targets a search query that includes a brand name. There are three common situations:
- Bidding on your own brand: a company buys ads on its own name to control the top of the results page and send searchers to the right landing page.
- Bidding on a competitor's brand: a company targets a rival's name so its ad appears when people search for that rival.
- Affiliate brand bidding: an affiliate runs search ads on a merchant's brand and sends the click through an affiliate link, earning commission on a sale.
The term "trademark bidder" usually refers to the advertiser or affiliate doing this, often in the context of a compliance complaint.
What Google Ads allows
Google's Trademarks policy, in the Google Ads Help Center, separates keywords from ad text:
- Keywords: Google lists "using trademarks as keywords" among the uses it will not restrict.
- Ad text: after a valid complaint, Google can restrict ads that show a trademark in the ad copy when the advertiser is a direct competitor, or when the use is confusing, deceptive or misleading.
- Resellers and informational sites: these may use a trademark in ad text if the landing page clearly sells the trademarked product or provides information about it, and the ad makes the advertiser's status clear.
- Regional scope: Google applies its process to the countries and industries in which the trademark owner has demonstrated rights.
Trademark owners file complaints through Google's "Report Content On Google" process, naming specific advertisers. Google says violations do not lead to immediate suspension; an advertiser receives a warning at least seven days before any account suspension.
Microsoft Advertising adopted a similar approach in 2011, allowing ads on Bing and Yahoo to be triggered by trademarked keywords in the US and Canada while limiting trademark use in ad text to authorized users, Search Engine Land reported at the time.
The legal context in brief
Platform policy and trademark law are separate questions. Two decisions are often cited:
- Google France v Louis Vuitton (EU, 2010): on March 23, 2010, the Court of Justice of the European Union ruled that Google did not itself infringe trademarks by selling trademark keywords. It also held that a trademark owner can stop an advertiser from using an identical keyword where the ad could affect the trademark's functions, for example by making the origin of the goods unclear.
- 1-800 Contacts v. FTC (US, 2021): on June 11, 2021, the US Court of Appeals for the Second Circuit vacated an FTC order against agreements in which 1-800 Contacts and rivals agreed not to bid on each other's brand names. The court said such agreements need a full rule-of-reason antitrust analysis rather than being treated as inherently suspect.
Rules differ by country and change over time. Treat this as background, not legal advice, and talk to a trademark attorney before acting on a dispute.
Brand bidding terms in affiliate programs
Most of the strictest rules come from affiliate agreements rather than search engines. Commission Factory's help center, for example, states that brand bidding "is not permitted unless an advertiser has explicitly approved it." Typical program terms cover:
- No bidding on the brand name, misspellings or brand-plus-term combinations such as "brand discount code."
- No broad or phrase match campaigns that end up showing on branded searches.
- No ad hijacking, meaning ads that imitate the merchant's own ad or URL.
- Penalties such as commission reversal or removal from the program.
If you work through a CPA or affiliate network, such as CityAds, the binding rules are the traffic and paid search terms listed on each individual offer. Read them before launching, and get any exception approved in writing.
Should you bid on trademarks?
Bidding on your own brand
Many advertisers do this to protect the top position, test messaging and control sitelinks. The tradeoff is paying for clicks that might have come through organic results anyway. Run a holdout test, such as pausing brand ads in one region, to measure how much traffic is truly incremental.
Bidding on competitor brands
Competitor terms can reach shoppers who are actively comparing options. They also tend to have low quality scores and higher costs, and they can provoke competitors to bid on your name in return. Never use the competitor's mark in your ad text unless you qualify under the policy, and make sure the ad clearly identifies your brand.
How to protect your brand from unwanted bidding
- Monitor branded results regularly in each market where you advertise.
- Write clear affiliate terms that define banned keywords, match types and penalties.
- Use the platform complaint process when competitors use your mark in ad text.
- Talk to partners first. Resellers and affiliates often fix issues quickly once contacted.
- Strengthen demand beyond search. The more people know and seek out your brand, the less a rival's ad can redirect them. Our guide to paid social creative strategy covers how creator-led ads build that demand.
Frequently asked questions
Is it legal to bid on a competitor's trademark?
Google allows trademarks as keywords. Courts in the US and EU have generally focused on whether the ad confuses consumers about who is selling. Laws vary by country, so get legal advice for your markets.
What is brand bidding in affiliate marketing?
It is when an affiliate runs paid search ads on the merchant's brand name and earns commission on the resulting sales. Most programs prohibit it without written approval.
Can I use a competitor's brand name in my ad text?
Generally no, if you are a direct competitor and the owner has filed a complaint. Resellers and informational sites may qualify for exceptions under Google's policy.
How do I stop competitors bidding on my trademark?
You usually cannot stop keyword bidding on Google. You can file complaints about trademark use in ad text, enforce your affiliate terms and seek legal advice if an ad is misleading.
Sources
- Google Ads Help, "Trademarks" policy (accessed October 2026)
- Search Engine Land, "Bing & Yahoo Align With Google's Trademark Rules" (2011)
- Wikipedia, "Google v Louis Vuitton" (Case C-236/08, judgment March 23, 2010; accessed October 2026)
- Wilson Sonsini, "Second Circuit Upholds Settlement Agreements Among Competitors Not to Bid on Rivals' Names as Keywords" (June 2021)
- Commission Factory Help Centre, "What brand bidding is and why it matters" (accessed October 2026)
