How to Conduct a PPC Competitor Analysis: A Detailed Guide
PPC (Pay-Per-Click) advertising is a powerful tool for driving traffic and increasing conversions, but to excel truly, businesses must understand what their competitors are doing. By conducting a thorough PPC competitor analysis, companies can uncover valuable insights, refine their strategies, and achieve a competitive edge. This article provides a detailed, step-by-step guide to competitive PPC analysis, along with the best tools to use.
What is PPC Competitor Analysis?
PPC competitor analysis is the systematic process of investigating and analyzing your competitors’ PPC campaigns. This involves studying their keywords, ad copy, bidding strategies, landing pages, and overall performance to gain insights that can inform and improve your own PPC efforts.
Why PPC Competitor Analysis Matters
With more competition fighting for the top spots in the search engine results page (SERP), it’s tougher than ever to get your PPC ads seen and clicked. That’s why gaining insights into your competitors’ strategies is critical.
Here are some of the key benefits of performing PPC competitor analysis:
- See what ads and keywords your competitors are using – This allows you to identify new relevant keywords and ad copy opportunities that are working for others. You may uncover keyword gaps where you can bid competitively and rank higher.
- Compare overlapping keywords – If you are targeting the same keywords as competitors, you can compare different factors like ad relevance, Quality Score, landing pages, and more to improve your own PPC performance.
- Evaluate competitor ad spend – Seeing your competitors’ ad budgets and bidding patterns allows you to adjust your own bids accordingly and maximize conversions within your budget.
- Identify weaknesses to capitalize on – Look for areas where competitors are under-optimized in their PPC accounts and campaigns. Their weaknesses represent opportunities for you to outperform them.
- Keep up with changes – The SERP is constantly changing. Monitoring competitors ensures you catch new trends, strategies, and ad formats.
- Inform your targeting – You may find relevant customer demographics, interests, and more to target based on what competitors are doing successfully.
Put simply, PPC competitor analysis turns the strategies of others into opportunities for your own PPC campaigns. An ongoing analysis ensures that you keep up with every change in the SERP.
6 Simple Steps to Conduct PPC Competitor Analysis
- Identify Your Main PPC Competitors
- Analyze Competitor PPC Ads
- Evaluate Competitor Keyword Strategies
- Assess Competitor Landing Pages
- Review Competitor Bidding Strategies
- Evaluate Competitor PPC Performance
Step 1: Identify Your Main PPC Competitors
Your first step is to develop a list of your primary competitors. These are companies that:
- Offer similar products or services
- Serve the same customer demographics
- Target the same keywords and search queries
Here are some ways to identify relevant PPC competitors:
Analyze Google Ads Auction Insights
One of the best tools for uncovering competitors on Google Ads is Auction Insights. This shows you the top advertisers bidding on your keywords by spend, impressions, and other metrics.
Simply enter a seed keyword, and Google will provide data-driven competitor suggestions. Pay attention to competitors with high impressions or click share, as that indicates strong relevance.
Review Search Engine Results Pages
Conduct manual searches for your target keywords across Google, Bing, and other engines. Analyze the text ads shown – these are competitors vying for attention from your ideal searchers.
Compile a list of competitors who appear repeatedly on your important keywords. Frequency indicates that they are actively bidding.
Use Keyword Research Tools
Tools like Ahrefs and SpyFu allow you to input a domain or keyword to see associated keywords and competing domains. The larger the shared keyword footprint between a domain and yours, the stronger a competitor they are.
Check Industry Resources
Consult reputable industry research reports that may provide lists of key players in your niche. These can surface competitors you may not have found otherwise.
Your competitor list may be long at first, but you’ll want to narrow it down to 3-5 core competitors for analysis. Focus on those bidding aggressively on your main keyword targets.
Step 2: Analyze Competitor PPC Ads
Next, dive into the actual ads your competitors are running by placing them side-by-side with your own.
Analyze each ad component, including:
- Headlines
- Description text
- Display URLs
- Ad extensions
Look for patterns in how competitors are structuring and optimizing their ads:
Study Ad Copy Themes
What common themes, keywords, or unique selling propositions (USPs) appear across competitors’ ad copy? What types of special offers or calls-to-action (CTAs) are used?
This can reveal new angles to test in your own ad copy. If multiple competitors highlight free shipping, emphasizing it in your ad could boost CTR.
Create an Ad Swipe File
Save standout ad examples into a swipe file you can reference when optimizing your campaigns. Competitor ads with highly relevant ad copy and extensions can inspire ideas.
But avoid overly mimicking competitors’ ads, which may seem inauthentic or copied.
Compare Ad Relevance
How closely does each ad align with the user’s search intent? The ad with the strongest match between what is searched and promised typically wins the click.
If competitors are outperforming you here, work on improving your ad relevance with better keywords and more compelling ad copy.
Check Ad Extensions
Note which ad extensions competitors are using, like sitelinks, callouts, location extensions, etc. If they are extending their reach, you may be at a disadvantage without them. Make sure to add relevant extensions to your own ads.
Analyzing competitor ads gives you proven formulas to apply and test in your own PPC account. Always balance competitor research with a focus on your brand voice and ideal customer needs.
Step 3: Evaluate Competitor Keyword Strategies
Drilling into the actual keywords competitors are bidding on provides tremendous insight into how they are targeting searchers.
Set up campaigns with shared keywords to uncover data like impressions, clicks, and average CPC. Then expand into analyzing keyword themes and search intent.
Identify Overlapping & Unique Keywords
It’s inevitable that you and your competitors will target some identical keywords. This is where you can directly compare performance metrics like CTR, Quality Score, ad relevance, and conversion rate.
Learn from competitors who are outranking you here—improve the landing page experience, increase bids, or enhance ads for these shared terms.
Also, look for strong, unique keywords competitors are bidding on that you may be missing. Add new negative keywords to avoid overlap going forward.
Compare Short-Tail vs. Long-Tail Keywords
Short-tail keywords (like ” shoes”) are broader and have more search volume, while long-tail versions (“men’s running shoes”) are more niche and have targeted intent.
See if competitors focus more aggressively on short or long-tail searches. Their strategy can influence how you allocate a budget for these types of keywords.
Analyze Searcher Intent
Group competitor keywords by searcher intent – are they going after informational, navigational, or transactional queries? This reveals who is targeting which stage in the buyer’s journey.
You may find competitors ignoring valuable long-tail informational searches. Or some may focus too narrowly on the bottom of the funnel. Use this intelligence to round out your targeting.
Step 4: Assess Competitor Landing Pages
Your competitors’ ads and keywords only tell half the story. You need to analyze their landing pages to complete the picture.
This step reveals if competitors can actually deliver on the promises made in their ads.
Assess key factors like:
Page Loading Speed
Slow landing pages equal lost customers. Use PageSpeed Insights to compare load times across landing pages for the same keywords. Faster competitors will outrank you.
Prioritize speed optimizations for slow pages, getting high traffic from competitive keywords.
Mobile Friendliness
Test the top landing pages of each competitor on Google’s Mobile-Friendly Test. If their site is not mobile-optimized, capitalize by improving your mobile experience.
Content Relevance
Does the landing page content match the searcher’s intent and keywords? The top ads from a search should send users to relevant, useful information.
If competitors’ landing pages fail here, beat them by creating content closely aligned to keywords.
Call-To-Action Prominence
How quickly can users find and take action on your competitors’ landing pages? The best solution is an obvious, clickable CTA button or link close to the top of the page.
Check that your most important landing pages have clear CTAs placed strategically.
Analyzing competitors’ landing pages gives you criteria to audit and optimize your own for maximum PPC impact.
Step 5: Review Competitor Bidding Strategies
Optimizing your bids is key to PPC success. When you understand competitor bidding behaviors, you can respond with more strategic bids.
Uncover key bidding insights by:
Checking Google’s Auction Insights
See average CPCs competitors are paying for shared keywords. This indicates what price point you need to be competitive.
Also, look for big discrepancies between your CPC and competitors. A large gap likely means you need to increase bids to become relevant.
Comparing Ad Spend Over Time
In auction models, more budget equates to more impressions and clicks. Use a tool like SpyFu to analyze trends in competitors’ estimated ad spend.
If they increase spending, you may need to allocate more as well to maintain visibility.
Reviewing Top vs. Absolute Top Bids
Are competitors aiming for the top slots with aggressive bids, or are they less concerned with position? Set your own bids based on whether you prioritize visibility or cost efficiency.
Understanding Competitor Bidding Models
Assess if competitors use manual CPC, enhanced CPC, target CPA, or maximume conversions bidding. Their strategy should influence yours based on your campaign goals.
Continuously tracking competitors’ bids equips you to adapt your budget and bids to stay competitive.
Step 6: Evaluate Competitor PPC Performance
Digging into competitors’ campaign performance sheds light on their PPC strategy effectiveness. Compare metrics like:
Click-Through-Rate (CTR)
A high CTR signifies that an ad resonates with searchers. If competitors have much better CTRs, replicate what is working by using their compelling ad copy, relevant keywords, and strategic extensions.
Bounce Rate
High bounce rates show that users are not engaged on landing pages. If competitors’ sites keep visitors better involved, the site experience and on-page optimization will be improved.
Conversion Rate
Converting visitors into leads and customers is the core goal. If your conversion rate lags far behind competitors, optimize pages and offers based on what is working for them.
Cost-Per-Click (CPC)
Aim for CPC levels in line with competitors. If theirs are much lower, increase quality score through landing page experience, expected CTR, and ad relevance.
Cost-Per-Acquisition (CPA)
What is the average cost competitors pay for each conversion? Use this benchmark to guide your targets and ROAS. A lower CPA indicates superior performance.
Learn from metrics where competitors are outperforming you, and the gaps represent clear optimization opportunities.
Utilizing PPC Competitor Analysis Insights
With a detailed picture of what your competitors are doing, now turn insights into strategic optimizations.
Ways to take action based on competitors’ strategies:
Improve Ad Copy and Landing Pages
If a competitor’s ad or site content better matches the searcher’s intent, create more relevant copy and pages for those keywords. Speak to customers needs to be shown in competitor messaging.
Get New Keyword Ideas
Discover untapped long-tail keywords competitors are bidding on that drive conversions. Find keyword gaps where you can rank with less competition. Expand your PPC keyword coverage.
Add High-Performing Extensions
Attach extensions that work well for competitors, like calls, locations, sitelinks, etc. Extensions can give your ad more real estate and improve CTR.
Outperform on Mobile Experience
If competitors have not optimized for mobile, improve your site speed, responsiveness, and mobile conversion funnels to gain an edge on mobile PPC.
Target Weak Areas
Identify parts of the funnel competitors overlook, like branded terms or informational keywords. Take advantage of their strategy’s weaknesses to get ahead.
Increase/Decrease Bids
Bid higher on shared keywords where competitors outrank you. Lower bids are based on adequate impression share and high CPC. Bid strategically based on their budgets.
Personalize Ads
Leverage your unique strengths and differentiators in ad copy. Avoid mimicking competitors too closely. Show why you are better aligned with the searcher’s intent.
The actions you take will depend on the competitors, keywords, and your business goals. Use data-driven insights to build PPC campaigns that outperform rivals.
8 Powerful Tools for PPC Competitor Analysis
Conducting thorough PPC competitor analysis does not need to be complex or time-consuming. Powerful tools automate and simplify the process so you can focus on strategic optimizations.
Here are the top 8 tools we recommend for PPC competitor analysis:
1. Google Ads Auction Insights
Google’s free Auction Insights tool lets you see competitors’ estimated daily budgets, impression share, click share, average CPC, and other stats for shared keywords. This helps you compare performance and set bids.
2. SEMrush
SEMrush provides extensive PPC competitor data, including keywords, ad copy, display URLs, and text ads. You can also view monthly paid search traffic estimates, top landing pages, and ad spending.
3. SpyFu
SpyFu tracks competitor keywords, domains, ad copy changes, estimated clicks, rank history, PPC budget trends and more for Google and Bing. Subscribe for access to more robust competitor insights and additional tools.
4. Ahrefs
Ahrefs offers helpful PPC data, including competitor keywords tracked by click volume, CPC estimates, and difficulty scores. Get keyword suggestions for targeting competitors have missed.
5. SimilarWeb
SimilarWeb reveals competitor website traffic sources breakdown. See the impact of PPC on competitors’ overall traffic to understand their strategy better.
6. Adthena
Adthena is an intelligent and comprehensive competitive intelligence tool for digital marketing. It surfaces competitor-paid search insights like new ads detected, spend changes, ad copy, and more.
7. Facebook Ad Library
Examine competitor’s advertising on Facebook to get creative ideas and identify opportunities. Browse ads by industry and advertiser name.
8. LinkedIn Ad Library
LinkedIn’s free ad library lets you peruse advertisers on their platform, including top keywords, creatives, landing pages, and more. Filter by location, company, or industry.
Each tool provides unique competitor insights from different angles. Use a combination to monitor competitors and inform your own PPC comprehensively.
Tips for Ongoing PPC Competitor Analysis
The SERP landscape evolves rapidly. Don’t treat competitor analysis as a one-time task. Consistent, ongoing monitoring ensures you keep up with the latest PPC trends and strategies.
Helpful tips for integrating competitor analysis into your processes:
- Add tracking tasks to your calendar – Schedule monthly or quarterly reviews in your calendar to analyze competitor changes over time. Set reminders to check on key competitors.
- Create a competitor dashboard – Use a tool like Geckoboard to build a TV-style dashboard displaying real-time PPC competitor metric updates. Glance at a high-level view of how you compare.
- Set up alerts – Many tools let you set alerts when competitors launch new ads, exceed budgets, change bids, etc. Get notified proactively of significant changes.
- Document insights – Keep detailed notes on lessons learned, ideas uncovered, and action items when reviewing competitors. Revisit these before optimizing your campaigns.
- Share findings with the team – Discuss competitor insights with PPC managers and other teams. Brainstorm ways to capitalize on weaknesses and mimic strengths.
Ongoing competitor research should inform your overall PPC roadmap. Keep up with the market by adding analysis to your monthly, quarterly, and annual plans.
Final Thoughts
In today’s crowded SERPs, succeeding with PPC requires understanding your competitors and what strategies are working for them. Use this comprehensive guide to start conducting an in-depth PPC competitor analysis. Uncover insights into their ads, keywords, budgets, landing pages, and more using the best tools available.
Consistent competitor research will reveal areas for improvement in your own accounts and campaigns. Learn from their successes and mistakes.
With the right competitor intelligence, you will gain an edge in securing the top positions in paid search. Strategic PPC optimizations based on the competition’s actions will increase visibility and conversions.
Now, put these tips into action and conduct a thorough competitor analysis of your main PPC rivals. Let data-driven insights about their strategies inform how you shape your campaigns to stand out and outperform.
PPC Competitor Analysis FAQs
What are the benefits of performing PPC competitor analysis?
Key benefits include identifying new keywords and opportunities, optimizing ad copy/landing pages, evaluating bidding strategies, benchmarking performance, uncovering weaknesses to capitalize on, and gaining a competitive edge in the SERP.
What are the main elements to analyze for competitors’ PPC campaigns?
The primary elements to analyze are the ads (copy, creativity, extensions), keywords (match types, intent, volume), landing pages (relevance, optimization), and performance data (impressions, CTR, conversions, spending).
What tools can I use to research competitors’ PPC campaigns?
The best tools for PPC competitor analysis include SEMrush, SpyFu, Ahrefs, Adbeat, iSpionage, Unbounce, Crazy Egg, and Hotjar. These tools offer comprehensive features for keyword research, ad copy analysis, bidding strategy insights, and landing page optimization.
How often should I be checking on competitors’ paid search activity?
Consistently monitor competitor changes over time by scheduling monthly or quarterly competitor analyses. Use alert tools to notify you of significant PPC changes as they happen.
How can I use competitor analysis to improve my PPC campaigns?
You can optimize your ad copy, landing pages, bids, keywords, targeting, budget, messaging, and more based on strategies and tactics that are performing well for competitors. Identify their weaknesses to strengthen your own PPC performance.
What should I look for in competitors’ ad copies?
When analyzing competitors’ ad copies, look for the headlines, descriptions, and CTAs they use. Identify successful elements that appear consistently across their ads and consider incorporating similar strategies into your own ads.
