Competition Analysis for Google Ads: Know Your Competition
Maik Metzen & Lara Marie Massmann 11/1/2022
We'll explain to you why a Google Ads competitive analysis makes sense and how it works.
Table of contents
- Why is competitor analysis so important for Google Ads?
- This information brings you a Google Ads Competitor Analysis
- This brings a Google Ads competitor analysis for your campaigns
- Google Ads Competitor Analysis in 4 Steps
- These tools help with the Google Ads Competitor Analysis
- Conclusion: Google Ads Competitor Analysis for optimized ads and campaigns
The more companies compete for an ad placement, the more expensive the click becomes. This is why it's important that you know exactly what your competition is doing and how you can use that to your advantage. By doing a competitor analysis for your Google Ads, you can get the most out of your media budget. Our two guest authors Maik Metzen and Lara Marie Massmann show you the important 4 steps and introduce you to useful tools for analysis.
Why is competitor analysis so important for Google Ads?
Online marketing is unstoppable, and competition is growing. Keeping an eye on the competition in your Google Ads makes it easier for you. Optimize your own Google Ads. This not only means you get more for your ad budget, but also that you can save time and nerves when creating them.
Recommended Search Engine Advertising (SEA) Software
You can find recommended Search Engine Advertising Software on our software comparison platform OMR Reviews. There we have listed over 40 SEA tools that you can use to support tasks in the area of search advertising campaign management. So take a look and compare the software with the help of authentic and verified user reviews:
The analysis of your Google Ads competition helps you,
- to evaluate and optimize your campaigns,
- to better position yourself thanks to inspiration from the competition,
- to plan future campaigns more easily, quickly and cost efficiently, and
- to perhaps even gain or expand a competitive advantage over time.
But of course, an analysis of your Google Ad competition is not just done on the side. Therefore, it is worth considering when the effort for a SEA competitor analysis is really worthwhile. The answer is simple: especially when something has changed.
- The competitive landscape is different than before, and you are dealing with new or more aggressive competition on Google Ads.
- There are changes in policies or targeting options and it becomes harder for you to contact your target group.
- You are changing yourself - perhaps with a new or significantly adjusted product or service offer.
- You took a risk with an ad strategy, but the expected return did not materialize.
- Your advertising account has gradually stopped performing and it's time for a changed strategy.
You find yourself at one of these points? Then it's time for a competitor analysis, or "Competitor Analysis", as the analysis is also called in marketing jargon.
This information brings you a Google Ads Competitor Analysis
In principle, the competitor analysis of your Google Ads serves to find out which competitors are positioning themselves particularly well, how exactly they achieve this - and which competitors exist at all. You might discover competitors among Google Ads who you haven't even noticed as competition yet.
Once the competitors are identified, you can now recognize based on the competitor analysis how your competition acts strategically, what works for them and what you can do better. This is particularly useful for your own positioning (keyword: USP!) and your external representation:
- How do you differentiate yourself from the competition?
- What does the competition offer to customers that does not yet exist with you?
- What weaknesses does the competition have and how can you use them?
- What strengths does the competition have and how can you keep up?
Otherwise, you can also read quite concrete details from a competitor analysis for your Google Ads:
- What keywords does the competition use?
- Are SEA and SEO strategy intertwined (more on this below)?
- How are the ads written that perform particularly well?
- How are the landing pages behind it designed?
Okay - but what exactly can you now derive for your own ads from this?
This brings a Google Ads competitor analysis for your campaigns
Next, we will show you how to conduct a complete Google Ads Competitor Analysis in four steps. For this we use four important W-questions. Here at a glance you can see what important insights you can draw in four steps from such a competitive analysis.
Learnings from a Google Ads competitor analysis
The four steps of SEA competitor analysis | Insights for your own ads |
Step 1: Who? |
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Step 2: Where? |
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Step 3: When? |
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Step 4: What? |
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This still seems a bit abstract? Don't worry: We will now guide you step by step through a complete competitor analysis in the Search engine advertising.
Google Ads Competitor Analysis in 4 Steps
The four steps in which you look at four important W-questions give you a comprehensive view of your Google Ads Competitors:
W-question: | Look at... |
Who? | Online vs. offline SEA vs. total web |
Where? | Channels and keywords Devices |
When? | Seasonality Advertising time |
What? | Ads Landing pages |
Step 1: Who are your Google Ads competitors?
You know your competition on Google Ads - really? In our work with our clients, we keep finding that there's still a lot to learn about the competition when doing a detailed analysis. How firm are you when it comes to these four types of competitors?
Four types of competitors at a glance, using the example of a car rental company (source: own presentation)
1. Companies, from whom you think they are your competitors
Let's assume you want to rent cars to your customers. You probably already know some of your direct competitors from your daily work. A quick google search will also show you additional competitors. These results end up on the list of competitors that you should take a closer look at.
But it would be too short-sighted to rely only on these in the Google Ads competitor analysis. Some competitors may not be online or hardly online at all - these won't cause you much trouble in terms of ads. But there are more groups you should consider in your analysis.
2. Companies, that offer the same product
Sixt, Hertz, Europcar and other car rental companies are in direct competition with you in our example. Clearly, a look at their ad strategy is worth it. After all, these companies are successful in the market - and here you can find clues as to how they attract their customers.
But not only pure car rental companies are fighting for the same ads, other suppliers of the same products can also be among them. In our example, these are, for example, comparison portals that promise rental cars at low prices.
An overview of the competition shows that direct competitors as well as comparison portals are represented. (Source: similarweb.com)
3. Companies, that offer a substitute
Who is looking for a rental car, might also be thrilled about car sharing - or, if it's a short distance, a scooter. Therefore, it is also worth taking a look at providers of similar products that can fulfill the same customer needs.
4. Companies, with whom you actually compete in SEA
Here you can expect some surprises. Maybe you discover in this part of the Google Ads Competitor Analysis competitors who don't seem like competition at first glance. Maybe a keyword is ambiguous or an ad is displayed due to inaccurate or even completely wrong settings. Either way: these competitors also drive up ad costs. So you should know them.
Conclusion : Not only the direct, known competitors belong in your competitive analysis - it is worthwhile to look beyond the obvious. Also worthwile: using more than one tool. The evaluations do not always show the same results, and the comparison can bring you additional insights.
The top 5 competitors according to SimilarWeb (source: similarweb.com)
The top 5 competitors according to Semrush (source: Semrush)
Tip: Tools like SimilarWeb can help you to better classify your competitors and find out how big and significant they actually are. Here you receive information about, for example, how often the corresponding page is visited monthly, how many subpages are viewed on average, how long the stay is etc. Also check out the overview of SEA tools and software.
Tools like SimilarWeb help you to estimate how significant your competitors are online. (Source: similarweb.com)
The WHO?-Questions from step 1 at a glance:
- Who are your main competitors in the PPC area?
- What significance do they have online?
- How do you differentiate yourself from them, e.g. in terms of product categories?
- How strong are they in Google auctions?
Step 2: Where is your Google Ads competition?
The question 'Where?' revolves around which channels and by which terms your competitors appear. Perhaps you will discover untapped potential here that you can also use for your company, or you will find out which channels you should focus more strongly on.
Tools like SimilarWeb Pro, Semrush, Ahrefsor Sistrix give you an overview of the channels your competitors use. In the following screenshot, among other things, you can see well that this competitor focuses intensively on organic search queries, i.e., SEO plays a major role in online marketing. Social media, on the other hand, is a rather small source of traffic, which mainly relies on Facebook and YouTube.
This overview is provided by SimilarWeb about the channels through which a competitor receives visitors. (Source: similarweb.com)
Again, a comparison of several tools is worthwhile here. As you can see here, Semrush provides similar, but not identical results. You can also find out which search engines were used to perform the search query - in this case, 94.57% Google.
The Semrush overview provides similar, but not identical results for the channels used. (Source: Semrush)
Interesting information is also provided by Semrush about the question of where competitors place banner ads. Here you can get inspiration for your own placements. For example, one competitor uses the website flughafen-stuttgart.de. A clever move, since it is not unlikely that a person visiting an airport website could also need a rental car. In addition, you can deduce from the overview on which devices customers are most likely to be reached - important information e.g. for mobile optimization.
The tool Semrush provides information about where banner advertising is placed and on which devices customers are reached. (Source: Semrush)
Last but not least, the tools also tell you for which terms (i.e. keywords) your competitors are being found. An evaluation from Semrush shows you in our example that both brand keywords ("cheap rental car") and the pure search intention ("car rental") come into consideration as search terms.
The Semrush overview shows which keywords a competitor is focusing on. Similar overviews are also provided by Ahrefs or Sistrix. (Source: Semrush)
The WHERE?-Questions from step 2 at a glance:
- Where does the competition advertise and which channels do they win traffic from?
- What keywords are most important for your competition on Google Ads?
- Which terms is the budget focused on?
- On which devices are they strong?
Step 3: When does your competition place Google Ads ads?
Travel time in July or target group especially active in the evening? The question 'When?' Is about how best to use seasons, weekdays, times of the day, etc. to increase the efficiency of your ads. Tools can help you here so you don't have to rely on assumptions.
Example: It is natural to assume that ads for rental cars could be particularly attractive during the summer holiday season. A look at the tool, however, shows: A peak is rather emerging in this case in December, while in January the ads do not work so well.
An evaluation from Semrush shows that ads generated a lot of traffic in December. (Source: Semrush)
But beware: A careful interpretation of the results is important, and it is sensible to compare here again with several tools. This way you can check, for example, whether the extreme low point in September is rather due to an error.
With the help of such tools, you can also find out on which days competitors are particularly strongly positioned. However, a look at the Google Ads Auction Insights often helps here as well. The following screenshot shows: The day of the week, Friday, is heavily contested. Here it might be better to switch to another day of the week - or to enter the competition particularly aggressively.
The evaluation shows that both competitor 1 and competitor 3 prioritize the Friday when displaying their ads. (Source: Semrush)
The WHEN?-Questions from step 3 at a glance:
- What time or month of the year is most important for your competitors?
- When do they spend the most on their budget?
- Are there weekdays with particular relevance for the competition?
Step 4: What do your competitors communicate and what happens after the click?
At this point, you already know a lot about your Google Ads Competitors - keywords, ad placement, timing, and much more. But what's actually in the ads? These are of course supposed to encourage customers to click on them. Different tools can be used here as well to look at the USPs and promises of your competitors.
We've put together some important aspects (like value, call-to-action or risk reduction) for example. Using such a matrix, you can easily put your own ads to the test and check off which aspects you have picked up on and where there is still room for improvement.
Such a matrix helps to evaluate your own ads and find out with which formulations competitors score points. (Source: Own representation)
Also a comparison of organic and paid keywords of the Google Ads competition can be of interest. Here you can see it, whether specific landing pages are optimized for keywords - and if yes, which - and in which areas instead heavy investment in ads is made. The following example shows: Here the SEO strategy (organic search results) focuses rather on local terms ("car rental travemünde"), while the paid keywords are much more overarching - and more fiercely contested ("car rental").
The keywords can be used to assess whether a joint SEO-SEA strategy is being used. (Source: Own representation)
Also interesting: Do the competitors use retargeting? To find that out, you can use the website whoisretargeting.me: First visit the site of your competitors and then check with the aforementioned website if cookies for retargeting measures have been set.
Last but not least, it makes sense to compare the landing pages to which your competitors' Google Ads lead. Here you can read a lot of valuable information, for example,
- whether the competition has created special SEA landing pages or uses regular websites,
- if there are filter functions (and if so, in which order) that you don't use,
- is the booking funnel simpler and more intuitive than the one you use, and overall,
- what your competitors do differently and perhaps even better.
Tip: A simple measure is to have colleagues and friends click on your ads. Ask for feedback on the funnel: Can they find their way around? Do all steps work? Are there things that are unclear or could be simplified?
The WHAT?-Questions from step 4 at a glance:
- What are the clues from the keyword coverage about a cross-cutting SEO-SEA strategy?
- Which landing pages are being used?
- What does the internal search and the conversion funnel look like?
- What filters are there?
- Is remarketing being used?
These tools help with the Google Ads Competitor Analysis
There are now a myriad of tools that can support you in a SEA competitor analysis. Especially paid tools provide a good overview of the keywords used by the competition, and also show the competing ads directly in comparison.
Here is a brief overview of the tools that we work with ourselves and that we have presented in this article:
Semrush
SimilarWeb Pro
Sistrix
Ahrefs
Google AdsTools like Semrush, SimilarWeb, Sistrix and Ahrefs provide information about who you compete with in SEA. Some tools, including Semrush and SimilarWeb, also show which channels are the most relevant traffic providers.
SimilarWeb stands out as a good overview tool: Here you can receive an assessment of how relevant a site is overall, see rankings for different sectors and categories, and read off interest categories for display advertising (as inspiration for your own Google Ads display campaigns). Other tools, on the other hand, go more in depth.
Tip: If you want to not only perform a competitive analysis, but also optimize Google Shopping Feeds or set up and control campaigns automatically, check out the best SEA tools, compiled based on reviews by actual users.
And finally: Not every tool is the ideal choice
The right tools are crucial to doing a good competitor analysis. But not every tool is suitable for every project. You've also seen that it's useful to compare results from several tools to get solid data. Ideally, you should collect data from several tools and calculate an average value from them that you will continue working with.
Also an important question: does the tool you have in mind also cover the ad formats that make sense for your company? Not every tool, for example, provides data on the Google Display Network or Google Shopping (the latter is available, for example, from Semrush). So take a close look beforehand at what features you get for your money.
Conclusion: Google Ads Competitor Analysis for optimized ads and campaigns
A thorough Google Ads Competitor Analysis takes time and effort, but it can pay off, especially if your campaign results lag behind your expectations or if changes have occurred. Your competition's Google Ads can point you to gaps in your ads, help you word and design your landing pages, highlight important keywords, and much more.
Various tools can assist you in your Google Ads competitor analysis. The possibilities are diverse and the selection of the appropriate tools plays an important role. It is also advisable to compare data from several tools in order to get reliable average values.
And last but not least: In the end, it's always about you, your company, and your offer. Your goal should be to find the gap in the competition - the one place where you can be better and assert yourself in a contested market. Good luck with that!
Author
Maik Metzen
Maik Metzen ist Gründer und Geschäftsführer der Berliner Performance-Marketing-Agentur AdStrive. Seit 2006 im digitalen Marketing unterwegs gründete er zuvor erfolgreich die beiden Agenturen AKM3 & Beyto sowie den Zigarren Online-Shop Noblego.
Author
Lara Marie Massmann
Lara Marie Massmann ist Head of New Business und Senior Consultant für Digital Marketing bei AdStrive, einer Performance-Marketing-Agentur aus Berlin. Sie ist seit 2013 im Ads-Bereich tätig und ihre Expertise umfasst die Bereiche Suchmaschinenmarketing (SEA & SEO), Social Media Advertising (SMA) und Google-Shopping-Optimierung. Als Referentin war sie bereits auf der OMX, der Webinale oder der PPC Masters aktiv.
