The practice of using a competitor’s brand name as an advertising keyword, often called brand conquesting, is a standard tactic in e-commerce marketing. This strategy aims to position a product directly in front of shoppers searching for a rival’s offering, diverting their attention at a high-intent moment. Whether this is permitted on Amazon depends entirely on where and how the brand name is utilized. Navigating the rules requires understanding the separation between the hidden targeting mechanism and the visible text displayed to the shopper. This distinction determines if an advertising campaign is a legitimate competitive maneuver or a policy violation.
The Core Distinction: Targeting vs. Ad Copy
The ability to bid on a competitor’s brand term is generally permitted within the Amazon Ads system, but using that brand term in the advertisement itself is strictly prohibited. Marketers are allowed to use a competitor’s trademark as a target keyword for Sponsored Products or Sponsored Brands campaigns, which acts as an invisible trigger causing their ad to appear in search results. This allows a seller to intercept traffic when a customer types the competitor’s name into the Amazon search bar.
The visible elements of the advertisement—the headline, product title, logo, or any custom image—must not contain the competitor’s brand name or logo. Amazon’s policy forbids the unauthorized use of a trademark in the actual ad copy because it misleads the customer about the source of the product. This means advertisers can target the search term “Brand X headphones” but cannot use the words “Brand X” in their own ad headline or product image.
Amazon’s Advertising Policy on Competitor Keywords
Amazon’s advertising policy permits the use of competitor keywords for placement strategies across its major ad types, including Sponsored Products, Sponsored Brands, and Sponsored Display. This system facilitates a competitive marketplace where products are displayed based on relevance and bid amount, allowing for conquesting. Advertisers can target competitor brand keywords directly, or they can use Product Attribute Targeting (PAT) to place ads on specific competitor product detail pages by targeting their ASINs.
The ad review process focuses on maintaining a clear presentation to the consumer. If an ad contains a competitor’s trademark in its visible copy, it will be rejected during the automated or manual review process. Severe or repeated violations, especially those involving misleading ad copy, can lead to the suspension or termination of an advertising account. Even if an ad is approved, a competitor can report the advertisement, prompting an internal Amazon review for unauthorized trademark use.
Understanding Trademark Infringement and Legal Risk
Separate from Amazon’s internal policies are the external legal considerations surrounding trademark law. A trademark legally protects a brand’s name, logo, or identifying design, preventing others from using it in a way that causes consumer confusion regarding the source of goods. While Amazon permits bidding on competitor terms, this practice can still carry legal risk depending on the jurisdiction and context.
Recent court decisions in the United States have consistently held that the mere act of purchasing a competitor’s trademark as a hidden keyword does not constitute trademark infringement. For a trademark claim to be successful, the rights holder must prove that the keyword use creates a “likelihood of consumer confusion.” If the competitor proves the bidding strategy results in consumers mistakenly believing the ad is from the original brand, legal action may follow. Large brands often send cease and desist letters, forcing smaller sellers to defend their advertising practices even when compliant with Amazon’s rules and legal precedent.
Strategic Advantages of Competitor Keyword Targeting
Targeting competitor keywords is a powerful strategy because it captures traffic with high purchase intent already qualified by another brand. Shoppers searching for a specific product name are actively considering a purchase, making them valuable to intercept. By placing a product as an immediate alternative, advertisers leverage the competitor’s established brand equity to draw attention to their own offering.
This approach is effective for newer brands aiming to gain initial visibility in a crowded category. A brand can capitalize on the established search volume of a market leader without needing to build that awareness organically. If a competitor neglects to defensively bid on their own branded terms, the cost-per-click (CPC) for conquesting keywords can be lower than expected, creating an opportunity to acquire relevant traffic efficiently. Successful conquesting campaigns increase a product’s impression share, allowing it to build sales history and market share.
Mitigating Risk and Best Practices for Implementation
To execute a conquesting strategy effectively and safely, sellers should focus on precision and defense.
Precision Targeting
Instead of targeting short, obvious brand names, focus on long-tail branded keywords that include product modifiers or use cases, such as “Brand Y fitness tracker waterproof band.” These terms generally have lower search volume but indicate a more specific and qualified buyer, often resulting in higher conversion rates.
Defensive Bidding
A proactive defense of one’s own brand is equally important to prevent competitors from successfully conquesting. Aggressively bidding on one’s own branded keywords ensures that a brand maintains the top advertising placement for its own terms. This defensive bidding strategy minimizes the chance of losing traffic to rivals and protects established market share.
Optimization and Budget Control
Advertisers should allocate a specific, controlled budget for conquesting campaigns and monitor the Advertising Cost of Sales (ACoS) closely. Since the relevance of a competitor’s term is not a perfect match, these campaigns can sometimes have a higher ACoS than general category targeting. Utilizing negative keywords is necessary for refining traffic, preventing ads from appearing on irrelevant searches triggered by broad match types, and reducing wasted ad spend. Strategic sellers continuously review search term reports to optimize targeting and maintain profitability while operating within policy guidelines.