In the fast-paced world of digital marketing, visibility is everything. For a UK startup trying to build brand awareness, every click counts. But there’s a hidden threat lurking in the shadows of Google Ads that could be stealing your customers, inflating your ad costs, and damaging your reputation — all without you even knowing it. It’s called trade mark bidding, and if you’re not monitoring it, your business could already be paying the price.
What Exactly Is Trademark Bidding?
Trademark bidding occurs when a competitor or affiliate runs paid ads using your registered brand name as a keyword. This means that when someone searches for your company — say, “Naked Wines” or “Monzo Bank” — the first result they see might not be your official website, but an ad from a rival or third-party seller. For example:
- A customer types “Ovo Energy” into Google.
- The top result is an ad from a competing energy provider.
- The user clicks, assuming it’s Ovo’s site, and ends up switching suppliers — not because they wanted to, but because they were misled by placement.
This isn’t just aggressive marketing — it’s a strategic move to intercept traffic you’ve worked hard (and spent money) to generate.
According to a 2023 study by Search Engine Land, over 68% of brands have detected competitors bidding on their branded keywords. Even more concerning? 42% of users don’t realize they’ve clicked on a competitor’s ad — meaning they may blame you if the experience falls short.
Why Should UK Startups Be Concerned?
For established corporations, losing a few conversions to brand bidding might be a minor annoyance. But for startups operating on tight budgets and fighting for market share, the impact can be devastating.
Here’s how trademark bidding hurts new businesses:
- Traffic Theft
Startups spend significant time and resources building SEO authority and running campaigns around their brand name. When a competitor hijacks that search intent, they steal qualified leads who were already predisposed to choose you.
- Increased Ad Costs
Google Ads uses an auction system. The more advertisers bidding on a keyword, the higher the cost-per-click (CPC). If five competitors are bidding on your brand name, you’ll have to pay more just to appear at the top of results for your own company.
A report by WordStream found that branded keywords often see CPC increases of up to 50% when multiple bidders enter the auction — a huge burden for bootstrapped startups.
- Damaged Brand Trust
Imagine a user searching for your fintech app only to land on a sketchy-looking site offering “exclusive deals.” If that site collects personal data or promotes misleading offers, the user may associate those negative experiences with your brand — even though you had nothing to do with it.
- Affiliate Abuse
Some affiliates exploit their access by bidding on your brand name to earn commissions unfairly. A user who would have converted organically gets redirected through an affiliate link, triggering a payout for zero added value.
As noted in Bluepear’s guide on paid search monitoring, this kind of abuse undermines fair partnerships and inflates marketing costs.
How Does Google Handle It?
You might assume Google bans this practice — after all, isn’t it deceptive?
Surprisingly, Google allows competitors to bid on trademarked terms as keywords. You can legally target “Revolut,” “Notion,” or “Gousto” in your ad campaigns. However, Google does restrict the use of trademarks in ad copy unless you have permission or fall under certain exceptions (like comparison shopping sites).
That means while the keyword can be used, phrases like “Official Gousto Deals” or “Buy Revolut Here” may get rejected — unless the advertiser proves legitimacy.
If you find a violation, you can file a complaint via Google’s Trademark Policy Enforcement Form. But here’s the catch: you need proof — screenshots, trademark registration, and evidence of misuse. Without proactive monitoring, most startups won’t even know a violation exists until it’s too late.
Real-World Impact: A UK Example
Consider a hypothetical UK-based SaaS startup launching a new project management tool called “FlowTask.” They invest £10k in PR, content marketing, and social media to drive awareness.
Within weeks, they notice low conversion rates despite high branded search volume. Upon investigation, they discover three competitors running ads on “FlowTask,” offering “similar tools with better pricing.”
One even uses design elements mimicking FlowTask’s website. Users click, convert elsewhere, and leave negative reviews on Trustpilot — not understanding they never reached the real company.
Without a system to detect these violations early, FlowTask loses credibility, revenue, and valuable growth momentum.
How to Protect Your Startup
The good news? You don’t have to accept trademark bidding as inevitable. Here’s what you can do:
- Monitor Branded Keywords Regularly
Use automated tools to scan Google and Bing results 24/7 for unauthorized ads. Manual checks are unreliable and time-consuming. - Set Up Real-Time Alerts
Get notified instantly when your brand appears in a competitor’s ad. Tools like Bluepear offer SERP snapshots and geo-tracking to help document violations. - Enforce Clear Affiliate Guidelines
Prohibit partners from bidding on your brand name. Make compliance part of your contract. - Report Violations Promptly
Use Google’s trademark complaint process with documented evidence to request ad removal. - Bid on Your Own Brand Name
Yes, it seems counterintuitive — but securing the top spot ensures you control the narrative and protect conversions.
Final Thoughts
Trademark bidding isn’t just a technical issue — it’s a business risk. For UK startups building their name in competitive markets, allowing others to profit from your brand equity is a costly mistake.
By understanding how trademark bidding works and implementing smart monitoring strategies, you can protect your traffic, maintain customer trust, and ensure your marketing budget delivers real ROI.
In today’s digital economy, your brand is one of your most valuable assets. Don’t let someone else cash in on it.
