The Competitive Intel You Need To Find New SEM Opportunities
With the right competitive intel, you can use that information and those insights to find new opportunities, even in a competitive PPC landscape.
With precision data, you can start to understand how and where your competitors’ budget is being spent, and what opportunities your campaign has yet to target. Competitive intelligence data will give you the data and insights you need to make strategic, well-informed decisions when it comes to your SEM strategy.
Today, we’re breaking down the steps that will show you how to analyze spend patterns in your industry and drill down to look for untapped opportunities.
Step 1: Find Your VerticalDid you know TSM has a library of millions of keywords, segmented by more than 1,200 verticals? With that industry data, you can create a vertical index to compare your spend, ad share, rank, CTR, and average CPC.
Step 2: Find Similar Sized AdvertisersSee how your spend compares to other advertisers by running a report and sorting by spend range. If you are a top tier advertiser, you only want benchmarks to compare yourself against the other big advertisers.
Step 3: Use Click to Spend Ratio To Benchmark PerformanceNote your current monthly spend and use The Search Monitor reports to create an index and see how you stack up based on clicks and spend. For example, you may be in the top tier of advertisers based on clicks, but in the middle tier based on spend. If that’s the case, you are not spending as much as the top advertisers, but are competing with them on clicks. That’s a good thing. However, if you are spending more than your competition (in the top tier for spend), but underperforming on clicks, you might want to rethink your strategy and start looking at quality scores.
In the chart above, the ideal position is the top left of the chart. That equals the highest number of clicks at the lowest cost per click. The farther to the right means higher CPC, and farther to the top means more clicks. Advertisers who find themselves closer to the bottom right of the chart should look closely at their strategy, and that of advertisers in the top left.
Step 4: Identify New OpportunitiesWhere your competitors are spending more and driving more clicks, look for new keyword opportunities. Where your competitors have a lower CPC, start looking for ways to improve quality score and ad efficiency. Where your competitors are spending less, check that these keywords are meeting your goals.
Also, review keyword lists to run a gap analysis and see which vertical terms your competitors are not appearing on and incorporate those into your ad copy and bid strategy.
This is exactly the intelligence you need to assess the strength of your campaign strategy and guide your focus going forward. And you can have it at your fingertips with The Search Monitor. If you want assistance in getting started, let us know.