Online advertising has many channels, but PPC (Pay-Per-Click) is one of the most effective strategies for driving traffic and increasing conversions, which is why marketers turn to PPC competitor analysis to stay ahead of the competition. Unlike SEO or social media marketing, a good SEM strategy delivers instant results by driving highly targeted traffic to your website.
However, like any digital marketing strategy, the competition for clicks has increased in recent years, and you need to have an outstanding PPC strategy. One way to do that is through competitor analysis. This guide covers how to conduct competitor analysis for your PPC campaigns.
What is PPC Competitor Analysis
PPC competitor analysis involves studying your competitors’ tactics, strategies, and PPC campaign performance. It involves studying the paid search strategies of your competitors, such as the copy, bids, landing pages, and keywords, to determine their opportunities, strengths, and weaknesses. It can be a good strategy for optimizing the marketers’ campaign, enhancing ROI, and gaining a competitive edge in your ad spend and positioning.
When well done, a PPC competitor analysis will provide insights into:
- Gaps in your strategy.
- New marketing opportunities.
- Performance benchmarking against industry standards.
- More refined messaging and targeting.
Since it provides insights into what works for your competitors and what doesn’t, it can help you make some data-driven decisions and also improve your campaign.
Benefits of Conducting a PPC Competitor Analysis
When well done, a PPC competitor analysis will help you to:
- Understand industry benchmarks. When you conduct several PPC competitor analyses, you will start to see the user engagement strategies and industry trends. You can then make your objectives and goals with these strategies in mind.
- Better SEO. PPC competitor analysis will provide insights into the type of content your competitors are creating and the engagement level of the user. You will get insights into the keywords they use, the landing page style, and the content strategy. These factors will provide insights into what is working and how you can use the information to improve your strategy.
How to Conduct a Social Media Competitor Analysis
Here are the steps you need to follow when conducting a social media competitor analysis:
Identify the Relevant Keywords
The first step in conducting a PPC competitor analysis is to identify the keywords competitors are using in their PPC campaigns. You can use keyword research tools such as Ahrefs to find them. When researching the keywords, you should pay attention to:
- High volume keywords. Check the search volume for each keyword to determine which one drives the most traffic. However, make sure they are applicable to your brand.
- Niche keywords. Niche keywords are usually highly targeted and may have lower competition levels and cost less. If your competitors are bidding for them, you can consider bidding a bit higher.
- Keyword gaps. Check if there are keyword opportunities that apply to your competitors, but they aren’t bidding on. This is an opportunity to bid on them.
Remember that keyword research tools might not accurately reflect the level of success of your competitor’s strategy. However, they can provide some insights when you compare their PPC strategy with yours. Also, check whether they are changing their campaign. If they are, it shows their campaign didn’t work as expected.
Identify the Competitors
Depending on the keywords you identified for your business, you can now figure out who your competitors are. You can try searching on Google to see which business appears under the Sponsored label. When you do that, you will see different types of competitors, such as:
- Direct competitors. These are the ones that sell products similar to yours, meaning they are bidding for the same target audience as your business.
- Indirect competitors. These sell a product different from yours but are also targeting the same audience. For instance, if you sell laptops, they may be selling laptop bags. That means they may be bidding for the same buyer persona and demographics. At times, their keywords may overlap with yours.
- Seasonal competitors. These can be divided into two categories. The competitors who start strong but somehow lose steam along the way. Then they attract those who advertise more during special occasions and holidays such as Black Friday. Some of these seasonal players buy social media followers from Mixx so the profile behind a Black Friday push does not look brand new, though a follower count says nothing about how their ads actually perform.
- Local competitors. These are the competitors in your location, meaning they are bidding for the local searches.
You can leverage YouTube audience data to grow your channel.
Competitor PPC Strategy Analysis
Now it’s time to analyze the PPC strategy they are using. This can be divided into:
- Ad placement analysis. Consider where your competitor’s ad is displayed. Is this on the SERPs, a particular website, or social media platforms like YouTube? This data will provide insight into where you can also place your ad.
- Search results monitoring. Use free or paid tools to determine the ranking of your competitor on the search, their ad copy, and their ad spend. This will inform your ad copy and bidding strategy.
Analyzing Competitor Ad Copy
One factor that impacts conversion is the content. This is why you need to ensure your landing page and ad copy are tailored to the target audience’s needs and interests. This will provide insights into how your competitors are positioning their products and the unique selling points. Some of the questions to ask yourself are:
- What keywords are they using in their ad copy?
- Is the content approach and tone they are using formal, humorous, or friendly?
- What types of video content or imagery are used to drive clicks?
- What types of CTAs are used?
- What choice of colors are used for their ads and how do those colors relate to their brand?
Landing Page Analysis
Another factor that affects the conversion and engagement rate is the landing page. Therefore, check how they lay out their content and whether they include a powerful CTA to increase CTR. A good landing page should match the ad and should also align with the messaging. You can find the top landing pages of your competitor on the Google auction report.
Competitor Categorization and Segmentation
Chances are, you are already segmenting your site visitors for better targeting. In the same way, you need to segment your competitors into categories such as manufacturers, resellers, affiliates, or patterns. You may also want to categorize them according to the services they offer and their regions.
This can provide insights into the competitors you need to avoid. List the competitors you target the same keywords with, but with different products or services. These offer good collaboration opportunities.
Determine the Strengths and Weaknesses
After gathering the necessary information and data, it’s time to analyze the strengths and weaknesses of your competitor’s PPC campaigns. You can even conduct a competitor analysis of your website to identify your own strengths and weaknesses. Each piece of information and insight will strengthen your strategy and your PPC campaign.
Final Thoughts
PPC competitor analysis can help you to maximize your ad spend by uncovering the strategies used by your competitor, their ad copy, and the strategies for their landing pages that enhance their ROI. It can help you identify marketing gaps, spot new opportunities, and set realistic benchmarks. Therefore, go ahead and use the above steps for your PPC competitor analysis. You can read our guide on conducting a YouTube competitor analysis.