Analyze Competition in AdWords

24 11 2010

The AdWords Analyze Competition feature, which was rolled out to all US advertisers at the end of August, after first being released in limited beta by Google in June of this year, is a great (lesser known) tool for understanding how your own campaign performance stacks up against the competitive landscape.  Analyzing the competition is an important component in finding new optimization opportunities and improving accounts on a monthly basis.  While the Analyze Competition feature is not a robust or highly intricate competitive intelligence tool (and is tucked away within the Opportunities tab of your account), the feature does shed light at a high level on your overall campaign performance in relation to your AdWords advertising competition.  Here’s how and why even this high-level competitive intelligence should become a useful part of your overall campaign optimization strategy:

Analyzing Your Competition

While business information is not divulged (it’s an aggregate average of all advertisers in your category), advertisers can get a satisfactory snapshot of how their account performance measures up to other advertisers bidding on keywords in the same categories.  This provides a great benchmarking analysis of where performance falls (at, below or above the competition) for campaign metrics such as impressions, clicks, CTR, or average position.  Unfortunately, conversion data is not one of the available metrics.  With the ability to use this data as an indicator of relative performance, advertisers can utilize these insights to make informed optimization decisions for their account.

Categorizing Keywords Properly

Keyword categorization is, as always, an important factor in ensuring your ads reach the right audience, obtain a high CTR and generate a positive quality score.  Using the Analyze Competition feature, advertisers can see how Google has assigned their keywords to a category and drill down to the specific search terms that triggered their ads.  This ability allows advertisers to identify new keyword or negative keyword opportunities and ideas for their account.  Advertisers will also discover if any keywords have been mis-categorized.  Moreover, Google isn’t perfect, so advertisers do have the option to alert Google if keywords have been mistakenly mis-categorized.

Finding Opportunities & Optimize Campaigns

Based on the competitive data garnered by the Analyze Competition feature, advertisers should determine which areas of their AdWords account they’d like to improve.  With the potential to expand keyword targeting opportunities, increase impressions, improve ad positioning and more, advertisers can pair this data with the automated optimization recommendations (customized to their account in the Opportunities tab), align with their goals and make performance changes.

Using the Analyze Competition Feature

Login to your AdWords account and follow these steps:

  1. Click on the Opportunities tab.
  2. Click on the Analyze competition link in the top left side bar, below the Ideas link.
  3. Adjust the compared metric, as necessary (default metric is “Impressions”).
  4. Click on a category link to drill down to a more specific sub-category.
  5. When the category name is no longer a link, you have hit the most specific sub-category.
  6. Click on the See Search Terms link for a list of searches that have been identified as relevant to that category.
  7. Analyze competitive metrics.

Here’s to analyzing success.

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