Emilio Garcia explains why Google Ads shows your ads on competitor searches even when you target generic terms. Click-through and conversion rates drop on competitor searches because users want a specific company. He recommends either removing competitor terms from your main campaign or building a separate one with copy that highlights your difference.
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So very similar to your own brand, unless you prevent it, you are probably showing up for your competition on your generic search terms because Google has that ability of semantically connecting all these companies and the category they belong to. But again, unfortunately, your performance for those searches will not be the same as the performance for your brand or the performance for generic terms. Your click-to-rate ratio will be different. Your conversion rate will be different because they're searching for a specific company and not the generic term. So I don't like the idea of showing up for your competition when somebody searches for that on your high-intent campaign. I want to make sure that we isolate that on that campaign. And that you remove competitors from your campaign. But if you are like, well, but I still want to show up when someone is searching for my competition because they're way larger than me, or we happen to have an edge on our product or service, well, create a specific campaign, put the competitors that you want, and then you make your copy all about how you are different.