DO IT THE RIGHT WAY!

With no doubts, bidding on competitor’s keyword is a good strategy that can help you reach the in-market audience looking for similar product or services, but it can backfire if not done in the right way.

To begin with, if you think everyone should bid on competitors’ brand name, you are absolutely wrong my friend. Although it can boost your clicks, it is should not be done in the early stages of building your account.

Why am I saying this?

Well, bidding on competitors brand keywords highly rely on your CPA target. Though it is not impossible, but hard to sell to people searching for other similar brands. The CTR is also less due to landing page experience and low ad relevancy and so, the CPL is usually on the higher side. Thus, bidding on competitors is probably not a good option for brands with low budgets.

However, when done the right way, bidding on competitor terms can give your brand a good push. After all, if someone is looking for your direct competitor’s products or services, it stands to reason they might be interested in what you offer too.

What’s the key to do it the right way?

Know your competition well. Read our blog on competition analysis for better understanding.

I have penned this blog with an aim to enlighten you with all the essential information to bid on your competitor’s brands.

So, let’s begin with evaluating the “if’s and but’s” of bidding on your competitors’ terms in paid marketing –

THE SUGGESTED BID IS CHEAPER, HOWEVER, THE CPA IS OFTEN HIGH

These terms are less competitive and thus has a lower suggested bid. However, when your campaign goes live, the quality score is judged on four parameters, which is poor in this case. Resultantly, the CPA is high.

BETTER BRAND AWARENESS

If you have money to burn, this strategy can promise good brand awareness. This strategy enables you to target the in market people – people who are already searching for a similar product or service and they have strong intention to make a purchase. Your brand reflects while they are searching for something similar to what you offer. By doing so, you put your brand in the conversation. It’s a good way to say, “Hey, I too exist, have you heard of me?”

That’s the good side of the coin; the harsh side goes like this –

IT BEGUILES A WAR

One serious pitfall to consider upon while bidding on a competitor’s term is that you are basically raging a war. With this strategy, you openly challenge your competition for a battle. The way your bidding on their brand name makes it expensive for them to bid on their brand terms, it can be vice versa.

All in all, bidding on competition terms can be a good opportunity for those who have the pocket to support the affair. It’s with no doubt a great way to grow your brand awareness and target the in-market audience, however, if done the right way.