Note: the actual table is much longer and has detailed sections for each platform. This table lets the consumer visually compare both companies and also has a simple call-to-action to sign up or get more information. Taking these steps in your competitor campaigns will increase your quality scores, click-through rate, and conversion rate and decrease your costs while staying competitive in your field.
Competition does drive up ad costs on Google Ads. Along with being forced to spend ad money on its own brand name, competition increases the cost per click as each company tries to out-bid each other. You can look at your Auction Insights report for your account as a whole, or each campaign, to see who your competitors are in ad spend, and their impression share and average position to get an idea of their advertising budget compared to yours and how aggressively they are bidding. The report can also show you how often their ads show above yours and at the top of the page.
Before getting in a bidding war with another competitor, there are a few other factors that can help you control costs. First, take a look at your customer data. What is the cost per conversion that you are willing to accept for your ads? Factor in future purchases, how long a customer normally spends with your company, and if there are opportunities to cross-sell or up-sell to them.
Overall of your ad campaigns, that is the number that you want to stay below. However, not every campaign should be expected to stay below that target. Campaigns may target different parts of the tunnel. The metrics and balance of the whole account overall platforms should meet the target goal. Second, balance your ad spending between high and low funnel campaigns.
If a consumer is already aware of your brand, they are more likely to convert when they see your search ad and are more likely to already be searching for your company. As we already mentioned, searches for your brand are a lot cheaper than non-brand or competitor searches to show your ads. And high-funnel ads on platforms like Google Display, YouTube, and social networks are much cheaper in cost per click than the bottom of funnel search ads.
Having a balance of ads across the funnel will make it easier to grow your brand awareness and increase the value of those low funnel search ads. High funnel campaigns may have a higher cost per conversion and a lower conversion rate than your Google search ads, especially your Google brand search ads. But they contribute to general awareness about your brand and lead to those low funnel conversions. To outplay your competitors in Google Ads, you must have a full-funnel approach to bring down your final costs and increase your conversion rate in Search.
The last step is in optimizing your targeting. Gather as much customer data as possible to find your best targeting for potential customers. The better you target your ads, the better your conversion rate will be. Google Analytics is a good place to start to gather Demographic, Interest, and Behavior data on your customers. Testing new targeting and watching for new tools on Google will help keep you in front of competitors.
Test automated bidding systems against each other and against manual bidding to find the one or ones that work best for each campaign and lead to the lowest possible cost per conversion. That does not matter as much as cost per conversion and the lifetime value of the customer. Unfortunately, some competitors do illegal and unsavory things sometimes to make life harder on your business.
Click fraud is one of the most common occurrences of this in Google paid ads. If competitors catch wind of you bidding on their brand terms, you can expect that they might bid on your brand in return, which could increase your brand CPCs. These searchers were showing fairly high intent to use another brand. They were possibly not looking to make a switch. Your landing page needs to make it clear why your services are better.
Why should they choose you over who they were searching for? Have you made it as frictionless as possible for them to convert with you before they look elsewhere? The above is a good example of how to do this. It explicitly uses the Trello keyword to build quality score, explains how Monday is better and gives you a clear call to action. In the same way that you should strictly separate your brand and non-brand searches, competitors should be treated as an entirely separate category.
This means separate campaigns, separate bid strategies, and strict use of negative keywords to avoid terms crossing over. If possible, label the customers gained from competitor bidding when you measure the lifetime value of your customers. Depending on your industry, you might be spending your ad money acquiring customers who are constantly shopping around. After all, they have already easily had their heads turned from their previous or intended supplier in the act of finding you.
This again highlights the importance of setting your account up with clear divides between Brand, Non-Brand and Competitor searches, allowing you to go much deeper with your reporting and analysis. We measure lifetime value closely for our clients to track the effectiveness of different campaigns. This is a key variable, and you should be looking to measure it.
Competitor bidding will work differently for every single industry and company. It is important that you hone in on the approach that gives you the best results. Interested in learning more, or looking to set up your own competitor bidding campaigns? Get in touch with the team here , we'd love to hear from you.
Written by Richard Ingilby. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously. Back to Paid Media. What is competitor bidding? Very useful information.
How would you interpret these scores. You would likely want it to be low since lower competition typically equates to less expensive clicks. Matt, I am a little confused. I am a blogger and i want a keyword with less competition and more searches, so competition index should high or low? You would want it to be low…lower competition typically equates to less expensive clicks.
Bing has its own Keyword Planner tool. You would want a low Competition indexed value for keywords your targeting for your blog. Lower Competition typically equates to lower cost-per-click. Note that this is a metric related specifically to Google Ads campaigns.
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