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DJ
Hi,
This is totally a legitimate strategy. If you would like to take this strategy to the next level, you can also create a page that reviews your service vs. your competitor, and then you can use the competitors content in your ad, and frame it as a review.
Just be aware, that if you have big competitors who are lawsuit happy, no matter what you do, you are at risk of them getting annoying and dirty. I'd recommend being very respectful (if they are bigger).
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