Ultimate Guide to PPC Competitor Benchmarking
Want to improve your PPC campaigns? Start by analysing your competitors.
PPC competitor benchmarking helps you understand what works in your competitors’ campaigns so you can refine your own. Here’s what it involves:
- Identify competitors: Use tools like SEMrush, SpyFu, or Google Ads Auction Insights to find who’s bidding on your keywords.
- Analyse their strategy: Study their ad copy, keyword choices, landing pages, and audience targeting.
- Compare performance: Measure metrics like CTR, CPC, conversion rates, and ROAS to see how your campaigns stack up.
- Take action: Use these insights to optimise your keywords, improve ad copy, and enhance landing pages for better results.
Competitor benchmarking isn’t just about tracking others – it’s about using data to make smarter decisions and get more out of your PPC budget.
Need proof? Brands like Hairy Baby and Beechwood Mortgages used competitor analysis to achieve higher conversions and revenue growth.
Ready to start? Dive into the details to sharpen your PPC strategy and stay ahead in the advertising game.
Competitor Analysis Marketing: PPC, Landing Pages, Ads and more…
How to Find and Profile Your PPC Competitors
Building on the foundation of benchmarking, this section explains how to identify and analyse your PPC competitors. Even indirect competitors can bid on the same high-value keywords, so a structured approach is essential.
Finding Your PPC Competitors
Start by conducting a manual search using your target keywords. Simply type these keywords into Google and examine the paid ad sections at the top and bottom of the search results. This quick step gives you a snapshot of who is actively vying for your audience’s attention.
For a deeper dive, use tools like SEMrush and SpyFu. These platforms go beyond identification, showing which competitors are bidding on your keywords, along with examples of their ads and landing pages.
If you’re a Google Ads user, the Auction Insights feature is invaluable. It provides data on impression share, ad positions, and other metrics, giving you a clearer view of the competitive landscape.
Don’t ignore organic search results. Businesses ranking high in unpaid search may not currently run paid campaigns but could become future competitors. Monitoring their activity is a smart move.
Make sure to distinguish between direct competitors (those offering similar products or services) and indirect competitors (those targeting the same keywords). Both groups can influence your campaign’s performance and costs.
Once you’ve identified key competitors, it’s time to profile their strategies in detail.
Key Areas to Profile in Competitors
To understand your competitors’ PPC strategies, start by examining their ad content. Look at their ad copy, extensions, and calls-to-action. This can highlight what’s working for them and reveal opportunities to improve your messaging.
Next, analyse their keyword performance. Metrics like impressions, clicks, click-through rates, cost-per-click, and conversion rates can provide insights into which keywords deliver results. Use this data to fine-tune your own keyword strategy and bidding approach.
Landing pages are another critical focus. Evaluate factors like page load speed, design, relevance to the ad, and the clarity of calls-to-action. Pay attention to how competitors structure their conversion funnels and the offers they present – this can inspire ideas for improving your own pages.
Audience targeting is equally important. Check if competitors are focusing on specific demographics, locations, or devices. This can help you refine your targeting strategy.
Finally, track their ad timing and spending patterns. Note when their ads run and use tools to estimate their ad budgets. This information can guide your campaign scheduling and budget planning.
Keeping competitor profiles updated ensures you have actionable insights to continually refine your PPC campaigns.
How to Analyse Competitor PPC Campaigns
Once you’ve built a clear profile of your competitors, it’s time to dig deeper into what makes their campaigns tick. Analysing their strategies can uncover the tactics driving their success and help you refine your own approach in the auction.
Reviewing Ad Copy and Keywords
To understand how competitors attract clicks, start by studying their ad copy. Look closely at the value propositions, emotional appeals, and calls-to-action they use to engage their audience.
"By analyzing competitors’ ad copy, you understand what pain points or benefits they are highlighting. This helps you define how you want to position yourself and what value proposition you can outshine your competitors on."
– Alyssa Galik, HawkSEM Lead Strategist and PPC expert
Pay attention to key elements like headlines, descriptions, special offers, pricing details, and promotional language. The way they prioritise their messaging often reveals their primary selling points.
On the keyword front, examine the intent behind their choices. Are they focusing on branded terms, non-branded terms, or a mix of both? Look for patterns in their use of long-tail keywords and how they allocate their budget across different stages of the buyer journey.
Tools like SEMrush, SpyFu, and Google Ads Auction Insights can help you systematically gather this data. The goal is to not only understand what your competitors are doing but also to figure out why their approach is effective.
Once you’ve reviewed their messaging, the next step is to see how it translates into landing page performance.
Checking Landing Page Performance
Competitor landing pages can reveal how well they convert paid traffic into actions. Examine factors like user experience, call-to-action placement, messaging flow, and technical performance.
"It is critical to review competitors’ landing pages and conversion processes. Observe the CTAs they use, how they generate leads, and what user experience they provide. Each of those pieces can help you develop a stronger PPC strategy than your competitors."
– Alyssa Galik, HawkSEM Lead Strategist and PPC expert
Start by assessing their page load speed using tools like Google PageSpeed Insights. For example, one analysis showed that while an eco-friendly yoga mat retailer’s landing page took 3.8 seconds to load, a competitor’s page loaded in just 2.2 seconds. The faster-loading pages, combined with consistent messaging and keyword alignment, had better conversion rates.
Evaluate their use of headlines, content clarity, design choices, and calls-to-action through the AIDA model (Attention-Interest-Desire-Action). A landing page that aligns with the ad’s promises can improve both Quality Scores and conversion rates.
Given the high number of mobile users in the UK, a seamless mobile experience is essential. Also, look for trust signals like testimonials, security badges, guarantees, and social proof, which can enhance credibility and encourage conversions.
Once you’ve explored creative elements, it’s time to assess how competitors allocate their budgets and approach bidding.
Estimating Budget and Bidding Approaches
Budget and bidding strategies provide valuable insights into your competitors’ priorities. While exact figures may not be accessible, there are ways to estimate their spending and bidding behaviour.
"Competitor analysis provides a visual of the PPC landscape before you enter it… It helps you understand how your strategy is working and where you may have gaps. Looking at the data on an ongoing basis provides information on position, budgets, copy, and opportunity."
– Alyssa Galik, HawkSEM Lead Strategist and PPC expert
Google Ads Auction Insights offers metrics like impression share, overlap rate, position above rate, and absolute top of page rate. These metrics shed light on how aggressively competitors are bidding and where they’re focusing their spend.
For more detailed budget insights, tools like SEMrush (from £99.95/month), SpyFu (from £28/month), and Ahrefs (£99/month) can provide estimated spend data in pounds sterling. Tracking changes in ad positions over time can help you spot shifts in their strategy, such as increased bids or improved Quality Scores.
Pay attention to the timing of their campaigns. Some competitors may reduce or pause ads on weekends or during specific hours, creating opportunities for you to capture traffic at a lower cost during those periods. Additionally, tracking their use of ad extensions can reveal how committed they are to maximising ad space and improving click-through rates.
Comparing PPC Performance Metrics
Once you’ve profiled your competitors, the next step is to measure your campaign’s performance against theirs. This side-by-side analysis helps pinpoint areas where you’re excelling, where you’re falling short, and where there’s room to improve and get ahead.
Key PPC Metrics for Comparison
Here are some of the most important metrics to keep an eye on when comparing PPC performance:
Click-Through Rate (CTR)
CTR is a direct measure of how effective your ads are at grabbing attention. On average, Google search ads see a CTR of 3.17%, while display ads hover at just 0.46%. However, these numbers vary widely by industry. For instance, dating and personals ads lead the pack with a 6.05% CTR, whereas B2B and consumer services tend to see lower rates at around 2.41%.
Cost Per Click (CPC)
CPC determines how efficiently your budget is being spent. The average CPC for Google search ads sits at £2.15 (converted from $2.69). In the UK, search ads cost around £2 on average, but this varies by sector. For example, legal services face steep costs of approximately £5.40 per click, while e-commerce campaigns can be as low as £0.93 per click.
Conversion Rate (CVR)
CVR shows how well your traffic converts into customers. Google search ads average a 3.75% CVR, far higher than display ads at 0.77%. Some industries, like auto dealerships, see excellent results with conversion rates of 6.03%, while tech companies may struggle with rates closer to 2.92%.
Cost Per Action (CPA)
CPA tells you how much you’re spending to acquire a customer. On average, search ads incur a CPA of £39.17 (converted from $48.96). This also varies by industry: e-commerce campaigns might average £36.22, while technology companies could face CPAs as high as £106.82.
Impression Share
This metric shows how much of the available market you’re capturing compared to competitors. Using Google Ads Auction Insights, you can assess whether factors like budget limitations or low ad rank are affecting your visibility.
Return on Ad Spend (ROAS)
ROAS measures the profitability of your campaigns. While industry-wide benchmarks for ROAS aren’t always available, tracking your performance against competitors can help set realistic goals.
| Industry | Average CTR (Search) | Average CPC (Search) | Average CVR (Search) | Average CPA (Search) |
|---|---|---|---|---|
| Auto | 4.00% | £1.97 | 6.03% | £26.82 |
| E-Commerce | 2.69% | £0.93 | 2.81% | £36.22 |
| Finance & Insurance | 2.91% | £2.75 | 5.10% | £65.55 |
| Legal | 2.93% | £5.40 | 6.98% | £68.82 |
| Technology | 2.09% | £3.04 | 2.92% | £106.82 |
| Travel & Hospitality | 4.68% | £1.22 | 3.55% | £35.78 |
Setting Up Performance Comparisons
To effectively compare performance, start by identifying your direct competitors – those who appear frequently in your Google Ads Auction Insights. These are the businesses vying for the same audience as you.
Document your current performance metrics, including CTR, CPC, CVR, CPA, and impression share. Track these monthly to spot trends and account for natural seasonal changes, like spikes in CTR during busy shopping periods. Use tools like Google Ads Auction Insights to compare metrics such as impression share, overlap rate, and position above rate against your competitors.
Consider building dashboards to track competitor activity over time. Tools like SEMrush (starting at £86.67/month) and SpyFu (starting at £26.40/month) can provide insights into estimated spend, ad frequency, and shifts in messaging. While competitor conversion rates remain private, these tools offer valuable data for broader analysis.
Focus on comparisons that lead to actionable insights. For example, if your CPC is higher than industry benchmarks, investigate whether competitors are using less competitive keywords or achieving better Quality Scores. If your conversion rates are lagging, examine competitor landing pages to identify effective elements like trust signals or compelling calls to action.
Additionally, monitor when competitors are most active. Some may reduce ad spend during weekends or specific hours, giving you a chance to capture traffic at lower costs during those times.
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Using Benchmarking Data to Improve Campaigns
Turning your performance data into actionable strategies can make a real difference in your campaign results. After gathering insights from competitor analysis and your own performance metrics, the next step is to use this information to fine-tune your campaigns. Benchmarking is most valuable when it leads to practical changes that enhance your return on investment (ROI).
Improving Keyword Targeting and Bids
Competitor analysis can be a goldmine for refining your keyword strategy and bids. Start by identifying keywords your competitors are successfully targeting but you’ve overlooked. These often include profitable long-tail keywords with high intent and lower competition. For instance, instead of bidding on a broad term like "mortgage advice", you could focus on something more specific, such as "first-time buyer mortgage advice London", to capture a niche audience.
Be mindful of overpriced keywords that may not deliver a strong ROI. If you notice competitors reducing their bids on certain high-cost terms, it could be a sign that these keywords aren’t worth the investment. With the average cost per click rising by 12.88% year-over-year, making informed decisions about keyword selection is more critical than ever.
You can also monitor competitor ad positions to understand their bidding strategies. If a competitor consistently ranks at the top for certain keywords, they’re likely bidding aggressively. This insight can help you decide whether to compete head-to-head or target less competitive keywords instead.
Don’t forget to adjust your bids based on competitor activity and work to improve your Quality Scores. Enhancing ad relevance and delivering a better landing page experience can make your campaigns more cost-effective.
"By understanding what keywords and ad copy your competitors are using, you can gain valuable insights into their strategies and potentially uncover new opportunities for your own campaigns."
- Naila Blogger, Assistant at Search Engine Optimisation (SEO)
These strategies help set the foundation for creating ads that truly connect with your audience.
Writing Better Ad Copy
Competitor insights can also guide you in crafting ad copy that stands out in search results. Look for gaps in their messaging and use those opportunities to highlight your unique benefits. For example, if competitors focus heavily on price, you might choose to emphasise quality or exceptional customer service.
Pay attention to their tone, positioning, and calls to action (CTAs). A conversational tone might resonate better with UK audiences, and emotional triggers often drive clicks more effectively than just listing features. Use benefits that create urgency or address common pain points, paired with action-driven CTAs like "Get Your Free Quote in 60 Seconds" instead of generic phrases.
Match your ad headlines and descriptions closely with user search queries. Specific, intent-driven ad copy tends to perform better, improving click-through rates. And don’t forget to A/B test different ad variations to find what resonates most with your audience.
Improving Landing Pages for More Conversions
Your competitor landing page analysis can help you make meaningful changes to boost conversions. Start by refining your headlines and value propositions. If competitor pages rely on generic messaging, create clear and compelling statements that showcase the benefits you offer.
Analyse their visual design and layout. Features like clean layouts and effective use of white space can enhance user engagement. Instead of copying their designs directly, focus on understanding the principles behind their success and adapt them to fit your brand.
Pay close attention to CTAs. If competitors’ CTAs are buried or lack impact, make yours more prominent and action-oriented. Experiment with placement – above the fold, after listing key benefits, or at multiple points on the page – to see what works best for your audience.
Here’s a real-world example: Beechwood Mortgages revamped its Google Ads strategy using competitor insights. They redesigned their landing pages to align with search terms and optimised their bidding approach. The results? Their conversion rate jumped from 0.7% to 11.74%, call inquiries increased by 314%, and qualified traffic grew by 1,182%, all without increasing their budget.
Also, check your page load speeds using tools like Google PageSpeed Insights. If competitors have slow-loading pages, optimising yours for speed can help you capture users who might otherwise abandon their search.
Finally, review competitor offers and promotions. If they’re not highlighting deals or guarantees, doing so on your pages could give you a competitive edge.
Monitoring Competitors Regularly
Consistent monitoring of your competitors is crucial to staying ahead. Set up systems to track their activity, focusing on changes that directly impact your campaigns, such as new keyword targets, shifts in messaging, or updates to ad copy.
Use performance dashboards to keep an eye on key competitor movements. Competitive analysis tools can automate much of this process, saving you time.
Set alerts for major changes in competitor behaviour. For example, if a competitor launches a new campaign or significantly alters their messaging, assess its impact on your campaigns and adjust quickly.
Focus on actionable insights rather than minor changes. Metrics that inform bidding decisions, reveal new keyword opportunities, or highlight emerging trends should take priority.
Regular monitoring also helps you anticipate competitor moves. If you see a competitor testing new ad formats or expanding into different keyword areas, evaluate whether these opportunities align with your strategy before they become saturated with competition.
With businesses now reporting an average return of £2 for every £1 spent on ads and 65% of industries seeing higher conversion rates, staying on top of competitor activity can make a big difference to your campaign’s profitability.
Conclusion
Consistently applying PPC competitor benchmarking can make a noticeable difference to your campaign outcomes. By focusing on the core steps – pinpointing direct and indirect competitors, studying their keyword strategies and ad copy, evaluating their landing pages, and keeping a close eye on their activities – you can navigate market shifts and refine your campaigns effectively.
The results of thorough competitor analysis can be impressive. Take Hairy Baby, an Irish clothing brand, as an example. By aligning their ad campaigns with market trends through detailed competitor analysis, they achieved better conversion rates, improved ROAS, and notable revenue growth.
"PPC competitor analysis is not just a strategic imperative; it’s a golden opportunity to transform your PPC campaigns’ performance."
- Joshua George, Founder of ClickSlice
However, success in competitor analysis doesn’t happen overnight – it requires commitment and the right tools. Sophie Logan, Paid Media lead at Beauhurst, highlights this:
"By analysing their efforts, we can spot missed opportunities and areas of improvement that we can implement into our own work, allowing us to run better PPC campaigns."
For businesses in the UK ready to embrace competitor benchmarking, The PPC Team offers tailored PPC strategies. Their services include competitor analysis, conversion rate optimisation, and detailed reporting to ensure businesses remain competitive in the digital space. They also provide a free PPC audit, offering actionable insights and bespoke strategies based on competitor data.
As discussed earlier, benchmarking influences every aspect of your PPC strategy – from choosing the right keywords to crafting compelling ad copy. With the fast-paced nature of digital advertising, staying ahead means adapting and monitoring continuously. Partnering with experts and investing in competitor analysis can significantly enhance your campaign’s performance.
Whether you’re new to PPC or aiming to refine your current efforts, competitor benchmarking equips you with the insights needed to make smarter decisions. This process helps you identify market gaps, fine-tune your bidding strategies, and achieve better results while optimising your ROI.
FAQs
How can I identify both direct and indirect PPC competitors effectively?
Identifying Direct and Indirect PPC Competitors
Pinpointing both direct and indirect PPC competitors is an essential step in crafting a successful Pay Per Click strategy. Specialised tools can help you dig into which businesses are bidding on the same keywords and running similar campaigns.
Direct competitors are those offering the same products or services to your audience. For example, if you sell running shoes, another running shoe retailer would be a direct competitor. Indirect competitors, on the other hand, provide alternative solutions to meet the same customer needs. Think of a gym competing with an outdoor fitness class – they both target people looking to stay fit but offer different approaches.
Using keyword analysis platforms, you can uncover valuable insights about your competitors, such as their bidding strategies, keyword choices, and even estimated traffic. Armed with this information, you can sharpen your own campaigns, ensuring you remain competitive and maximise the effectiveness of your PPC efforts.
What are the most important metrics to track when benchmarking my PPC campaigns against competitors?
When you’re evaluating your PPC campaigns against competitors, it’s crucial to focus on metrics that highlight both performance and efficiency. Start with the basics: click-through rate (CTR), conversion rate (CVR), cost-per-click (CPC), and return on ad spend (ROAS). These will give you a clear picture of how your campaigns stack up in terms of driving traffic, converting users, and generating value.
Beyond these, take a closer look at metrics like impression share, quality score, and customer lifetime value (CLV). These provide a deeper understanding of your campaign’s visibility, relevance, and its potential to deliver long-term gains. By analysing these numbers, you’ll uncover areas where you can fine-tune your strategy, ensuring you stay competitive and maximise your results.
How can I use competitor benchmarking to improve my ad copy and landing pages for better results?
Competitor benchmarking offers a window into what’s clicking in your industry. By diving into your competitors’ ad copy, you can uncover the messages, tones, and formats that strike a chord with your shared audience. This knowledge helps you craft ads that not only capture attention but also feel relevant and engaging.
Taking it a step further, analysing competitors’ landing pages can highlight design choices, calls-to-action, and user journeys that work well. These observations can guide you in fine-tuning your own pages to make them more persuasive, easier to navigate, and better aligned with what your customers expect. Using these insights effectively can lead to campaigns that spark more engagement and boost conversions.
