One of our competitors runs Google adverts on their website. We've debated running an advert via the Google network on that site. We're in two minds about it:
Is it immoral to do this?
The whole point of advertising is to attract buyers to your product or service. Do you question whether to advertise on other sites where your ad might run? You run your ad on the sites that generate the most sales for you. If your competitor allows ads on their site, then advertise there.
I would strongly suspect that as soon as your competitor notices yours ads there, he will block your ads from appearing. But in the mean time, go for it.
Ethically it is not good to place ads on your direct competitor's website(s) but legally and intentionally you can do it in the given scenario because your competitor is already running Google Adverts on their website. So they are generating money from two sources:
Regarding their customers; they would love to consider and compare another similar alternative. So don’t think about their customers’ base and go for ad placement.
If they are foolish enough to have competitors Google Ads on their website then that is entirely their choice and their mistake.
However I would keep a very close eye on the traffic from this and the results you get. There are some unscroupulous businesses out there and I'm sure some may click competitors ads on their own sites (not very often if they have any sense or Google will catch them at it), as it will have two effects, increasing their revenue from adsense and burning their competitors budgets.
However anyone daft enought to allow competitors ads onto their site is probably not clever enough to pull that off.