Pay Per Click

Google ‘Analyse Competition’ – AdWords’ new secret weapon

Written by James Murphy on 22nd July 2010

Google’s ‘Analyse Competition’ tool

Google have introduced a new tool to their ever increasing opportunities armoury tab which gives advertisers the ability to compare the performance of their campaigns with other advertisers from the same category. Don’t get your hopes up though; the Analyse Competition tool is completely anonymous so no data is provided to you about a particular advertiser or website.

The Google Adwords Analyse Competition tool looks at the activity of your Adwords account over a two week time frame, which is then compared with millions of other advertisers to provide a visual output of how well you are performing in relation to them. By matching the keyphrases, landing page text and the advert text in your campaigns with actual Google search queries, a list of categories is generated which corresponds to the offers, products or services that you are currently advertising in your account.

Specific Competition Categories

For each category that Google places your account into based on its Analyse Competition algorithm you will be able to see a bar chart. The chart has a bar for your accounts individual performance and a bar that displays the average performance of the category that you have been placed into.

Diving into the four metrics

You can analyse the categories competition based on four different metrics. These include; clicks, impressions, click-through-rate and average position. By comparing each of these metrics, it makes it possible for you to understand exactly how well your account is performing in relation to all the other advertisers in the same category. This is helpful as it allows you to bench mark your performance with other advertisers. For example, if you went to analyse your click through rate with the categories competition and your chart was only 50% of the overall average it suggests you need to look into new methods of increasing your click through rate.

Exploring new ideas

To provide more information on your accounts performance, the Analyse Competition tool also allows you to view the range bracket you are currently in. The “Explore ideas” tab also provides you with more keywords and further ideas to increase your account’s performance based on each category.

Is this tool really that magical?

To sum up, does this new tool provide you with the information you require to optimise your accounts? In a way it does, but it needs to be used in conjunction with the other opportunities tools in Adwords, to provide a more transparent view of your account’s performance. However, as the tool is like a ranking of your performance, it gives you an indication of how you can better your account and lead to it becoming more successful. In a way, advertisers can now get inspired by what comparable businesses do better than them, and can change particular metrics to outperform them in the future.

Posted by James Murphy