Running a competitor Google Ad campaign seems to be a good idea, but before you create one, be sure to understand the pros and cons of running this type of campaign.
What is a Competitor Campaign?
A competitor campaign is a type of online advertising strategy where a business shows ads to people searching for a competing company. For example, if someone searches for a competitor’s name on Google, your ad may appear alongside the search results, giving potential customers the opportunity to learn about your business as well.
Competitor campaigns can be highly effective when you have a clear differentiator and a strong landing page. However, they generally work best as a supplement to your core search campaigns and not as a primary lead generation strategy. The goal is to capture additional market share while continuing to protect and invest in your own branded and high-intent keywords.
Pros of Competitor Campaigns
1. Reach High-Intent Buyers
People searching for your competitors are already in the market for your product or service. You’re placing your business in front of prospects who are actively evaluating options.
2. Gain Market Share
Competitor campaigns allow you to intercept potential customers before they make a final decision. A compelling offer, stronger reputation, better pricing, or unique selling proposition can persuade users to choose your company instead.
3. Relatively Lower Competition Than Broad Keywords
Many businesses focus on generic industry keywords and ignore competitor targeting. This can sometimes create opportunities to reach qualified prospects without competing in crowded keyword auctions.
4. Valuable Competitive Insights
Running competitor campaigns provides data on which competitors generate the most interest, click-through rates, conversion rates, and cost per lead. These insights can help shape your own marketing strategy and messaging.
Cons of Competitor Campaigns
1. Higher Cost Per Click and Lower Quality Scores
Google does not allow advertisers to use competitors’ trademarks in most ad copy. Since your ad may be less relevant to the searcher’s original intent, Quality Scores are often lower, which can result in higher CPCs and lower ad positions.
2. Lower Conversion Rates Than Branded Searches
Someone searching for a competitor is usually familiar with that company and may already have a preference. While you can generate leads, conversion rates are often lower than campaigns targeting your own brand name.
3. Competitors May Target Your Brand
If competitors notice your ads appearing on their branded searches, they may launch campaigns targeting your brand as well. In some cases, this can increase your branded CPCs, force you to defend your own brand terms more aggressively, and potentially reduce the visibility of your brand searches.
Is a Competitor Campaign Worth It?
A competitor campaign can be a valuable addition to your business’ marketing strategy. It can allow an opportunity to reach potential customers during the decision-making process, but they should complement (not replace) your core advertising. Success often depends on having a strong offer, clear messaging, and a compelling reason for customers to choose your business over the competition.