Bidding on competitor brand names can be an effective and profitable tactic for your PPC marketing campaigns. If done correctly, you can present your company’s brand and/or products side by side to someone who is searching for products or services that you also offer.
The key to success is setting up a proper account structure and selecting the terms you bid on to reflect the correct sections of the purchase cycle that could ultimately lead to a conversion for your business.
The first item to tackle is the account structure. Quality Score can have a ‘trickle up’ effect and have a negative effect on other terms within an ad group or campaign. Competitor brand terms should be treated like your own brand terms and be separated into their own campaign. With each competitor receiving their own ad groups.
It is quite likely that click-through-rates, conversions and Quality Scores will be lower for your Compteitor-brand name campaign. You will want to also keep these keywords separate for reporting purposes as well. Having these separate from the rest of your campaigns will help you understand the profitability of bidding on your competitors brand names.
Targeting The Right Part Of The Purchase Cycle
The next item to address when bidding on competitor brand names is to gear your campaign structure to attack different parts of the purchasing cycle. Depending on how granular you get with your structure, this could be done at the ad group level.
When bidding on competitor brand name terms you want to be able to take advantage of searchers who are still in the research or fact finding stage of the purchase cycle. Ideally you want to present your company’s product or service as an alternative when a searcher is gathering information about a competitor. They may have never heard of your brand or been focused on your competitor but an intriguing text ad accompanied by a informative site with a optimized call to action could help you convert searchers who were initially searching for your competitor. Think of it as taking up a block of real estate on in your competitors neighborhood.
Putting Negatives To Use
You can also use negatives to block your ads from showing to certain search queries. If your know certain keywords or phrases suggest a potential customer is extremely far along in the purchase cycle, you can use those as negative so you do not waste your marketing budget.
Setting up a competitor name campaign can take some time, you cannot just create an ad and set your competitors name to broad match. If the steps above are followed it can be a highly profitable and effective marketing tactic.