What is Competitor Analysis? 🔍
Competitor analysis is a process of identifying and evaluating your competitors’ strengths and weaknesses, as well as their strategies, to improve your own business strategy. When it comes to pay-per-click (PPC) advertising, competitor analysis can help you understand how your competitors are bidding on keywords, what ad copy they are using, and which landing pages they are directing visitors to.
By analyzing your competitors’ PPC strategies, you can identify opportunities to improve your own PPC campaigns, such as adjusting your bids, testing different ad copy, or improving your landing pages. Competitor analysis can also help you stay ahead of the competition, by identifying new trends and emerging competitors in your industry.
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Step-by-Step Guide to Conducting Competitor Analysis for PPC 🕵️♂️
Identify your competitors
The first step is to identify your competitors in the PPC space. Start by searching for the keywords you are targeting in Google and other search engines, and see which companies are appearing in the paid search results. You can also use tools like SEMrush or SpyFu to identify your competitors and get insights into their PPC campaigns.
Analyze their keywords
Once you have identified your competitors, you need to analyze the keywords they are targeting in their PPC campaigns. You can use tools like Google Keyword Planner or SEMrush to identify the keywords your competitors are bidding on, as well as the estimated monthly search volume and cost per click (CPC) for those keywords.
By analyzing your competitors’ keywords, you can identify new opportunities to target keywords that they may be overlooking or find ways to improve your own bidding strategy for the keywords that you are targeting.
Analyze their ad copy
The next step is to analyze your competitors’ ad copy. Look at the headlines, descriptions, and display URLs that they are using in their ads. What messaging are they using? What unique selling propositions (USPs) are they highlighting? How are they differentiating themselves from other competitors in the space?
By analyzing your competitors’ ad copy, you can identify new ideas for ad copy that you can test in your own PPC campaigns, or find ways to differentiate your own ads from your competitors.
Analyze their landing pages
The final step is to analyze your competitors’ landing pages. Look at the design, messaging, and calls-to-action (CTAs) on their landing pages. What are they trying to accomplish with their landing pages? Are they trying to generate leads, make sales, or build brand awareness?
By analyzing your competitors’ landing pages, you can identify new ideas for improving your own landing pages, such as testing different designs or CTAs or optimizing your landing pages for specific keywords.
Types of Competitors to Analyze 👥
When it comes to PPC advertising, there are three main types of competitors that you should be analyzing:
Direct competitors are other companies in your industry that offer the same products or services as you. They are likely bidding on the same keywords as you and targeting the same audience. Analyzing their PPC campaigns can help you identify opportunities to differentiate yourself from them and improve your own campaigns.
Indirect competitors are companies that offer products or services that are related to yours, but not directly competitive. For example, a company that sells running shoes may consider a company that sells fitness apparel to be an indirect competitor. Analyzing their PPC campaigns can help you identify new opportunities to expand your target audience or find new ways to market your products or services.
Emergent competitors are new companies that are entering your industry and starting to gain traction in the PPC space. Analyzing their PPC campaigns can help you stay ahead of the competition and quickly identify emerging trends in your industry.
Metrics to Analyze in Competitor Analysis 📊
When conducting competitor analysis for PPC advertising, there are several metrics that you should be analyzing:
Average position refers to where your ads are ranking in the search results compared to your competitors. By analyzing your competitors’ average position, you can identify opportunities to improve your bidding strategy and increase your ad visibility.
Click-through rate (CTR)
Click-through rate is the percentage of people who click on your ads after seeing them. Analyzing your competitors’ CTR can help you identify new ideas for ad copy and calls to action that can help improve your own CTR.
Cost per click (CPC)
Cost per click refers to how much you are paying for each click on your ads. Analyzing your competitors’ CPC can help you identify opportunities to improve your bidding strategy and reduce your overall advertising costs.
Conversion rate refers to the percentage of people who take a desired action on your website after clicking on your ads, such as making a purchase or filling out a form. Analyzing your competitors’ conversion rates can help you identify new ideas for landing pages and calls to action that can help improve your own conversion rates.
Quality score is a metric that Google uses to measure the relevance and usefulness of your ads and landing pages to users. Analyzing your competitors’ quality scores can help you identify ways to improve the relevance and usefulness of your own ads and landing pages.
Use Competitor Analysis to Improve Your PPC Results 🚀
By conducting competitor analysis for your PPC campaigns, you can identify new opportunities to improve your bidding strategy, ad copy, and landing pages, as well as stay ahead of the competition. Use the step-by-step guide and metrics outlined above to conduct a thorough analysis of your competitors, and start optimizing your PPC campaigns for better results.
Additionally, here are some tips to help you make the most out of your competitor analysis:
- Focus on your top competitors: Instead of analyzing every single competitor in your industry, focus on your top competitors who are bidding on the same keywords as you and have a similar target audience.
- Analyze regularly: Competitor analysis should be an ongoing process, as your competitors’ strategies and campaigns may change over time. Set a regular schedule to analyze your competitors, such as every quarter or every six months.
- Look for gaps in the market: By analyzing your competitors’ PPC campaigns, you may identify gaps in the market that your business can fill. For example, if your competitors are not targeting a specific keyword, you can capitalize on that by targeting that keyword in your own campaigns.
- Don’t copy your competitors: While it’s important to analyze your competitors’ strategies, you should not simply copy what they are doing. Instead, use their strategies as inspiration to improve your own campaigns and differentiate yourself from the competition.
- Test, test, test: Once you’ve identified areas for improvement in your PPC campaigns, test different strategies and see what works best for your business. Use A/B testing to compare different ad copy, landing pages, and bidding strategies to see which ones generate the best results.
In conclusion, competitor analysis is an important tool for improving your PPC campaigns and staying ahead of the competition. By analyzing your competitors’ keywords, ad copy, landing pages, and metrics, you can identify opportunities to improve your own campaigns and achieve better results.