PPC competitive analysis is a tool that allows you to see how your competitors are performing and how their ads are arranged so that you can learn from them and make better decisions about your own advertising strategy.
The best part about PPC competitive analysis? It’s free! You only need access to the Google AdWords Performance Grader and a spreadsheet application like Excel or Google Sheets.
What “competitive analysis” means
A competitive analysis is a process used to understand the performance of your competitors.
It’s important to know how well they are advertising, what kind of keywords they’re bidding on, where their ads show up (e.g., desktop vs mobile), and other factors that can help give you an edge.
You can use this information to improve your PPC campaign by learning from the mistakes made by others or taking advantage of any new trends in the industry before they become mainstream.
There are two principal metrics used when running a competitive analysis
The two main metrics used in a competitive analysis are CPA (cost per acquisition) and CTR (click-through rate). CPA is how much you spend on each new customer, while CTR measures how many people saw your ad and clicked it. A low CPA means paying less money to get customers than other companies in your industry; a high CTR indicates that people are more interested in your offer than other advertisers competing for them.
The conversion rate is also essential; this is the percentage of people who see an ad who eventually convert into paying customers or leads. A low conversion rate can mean either something wrong with your product or service or how it’s presented online–or both!
It’s easy to think you’re competing with everyone in your vertical. Still, only a few advertisers are likely bidding on similar keywords as you are.
The key is to find competitors who are bidding on similar keywords as you are. The more competitive the keyword, the more likely you will compete with many people.
If you are competitive in one keyword, this doesn’t mean you’ll be competitive in another
Before you can start bidding on a keyword, you need to know the competition level of that keyword.
This gives us some insight into how competitive this keyword is: getting our ads in front of people searching for [golf clubs] will be challenging. If your competitor is spending $100 per day and making $0.37 per click, they’re getting around 100 clicks per day from their PPC campaign (which would be about 20% CTR).
We also want to look at other factors, like whether there are high-quality landing pages on our competitors’ websites and whether they have good reviews and ratings on Google My Business (GMB).
Using Bid Adjustments
Bid adjustments can help you find the right balance between expensive and cheap keywords. The difference between a high-paying keyword, like “New York City luxury hotel rooms,” and a low-paying one, like “website design services,” might be so significant that splitting them into two different campaigns makes sense.
An excellent way to use bid adjustments is by setting up separate ad groups for each category of products or services you sell.
For example, if your business offers both clothing and electronics (and you want to advertise on Google Shopping), consider separating these products into different campaigns so they don’t compete against each other for bids on searches related only to one category of items – this will help keep costs down while still getting enough traffic from relevant searches!
Competitive analysis helps you understand how your competitors are advertising and how well their ads perform so that you can learn from them and make better decisions about your own advertising strategy.
Suppose you need to be more careful with your competitor’s research. Competitive analysis is a crucial part of any marketing campaign. Still, it’s essential for pay-per-click (PPC) campaigns because of the high cost of each click. In that case, it could be costing you money without providing any benefit to offset those losses in revenue.
A competitive analysis is a valuable tool for any PPC manager.
It helps you understand what your competitors are doing and how well their ads perform so that you can learn from them and make better decisions about your own advertising strategy.
What tools do you use for competitor analysis? Let’s hear in the comments.