As a digital marketer, I frequently encounter the question: "Should we run ads targeting competitor key terms?" This idea often arises when business owners are frustrated that their competitors are capturing their client base. It's easy to get tempted by targeting competitor keywords, hoping to steal some of their traffic. However, after years of running campaigns, I've learned that the success of such a strategy depends largely on how it's executed and its ultimate goal.
The Intent Behind Targeting Competitor Keywords
It's crucial to understand the why before diving into the specifics of targeting competitor keywords. Businesses often opt for this tactic to grab attention from users already familiar with a competitor. But let's think about the user's intent. Suppose someone is searching for a specific brand in the wedding venue space, like Brighton Savoy. In that case, they likely already know about the brand and are looking for specific information, whether booking a service or getting in touch with them.
The biggest challenge is that the user intent doesn't always align with the competitor keyword. For instance, imagine someone is Googling a competitor's brand name to find their contact information. If you're running ads targeting that keyword and they click on your ad, you've captured the click for the wrong reasons. This leads to wasted ad spend, as the person wasn't looking for your service in the first place. Instead, they may try to resolve an issue or obtain details, like a phone number or a service-related query.
Risk of Wasting Budget
One of the primary drawbacks of targeting competitor keywords is the potential for wasting your advertising budget. The problem is that the conversion intent can be very different when someone searches for a competitor's name. Let's take a removalist campaign I worked on as an example. A large portion of the ad budget was directed toward keywords related to competitors, but these clicks were coming from people looking to resolve an issue with their moving service. Essentially, these weren't qualified leads. Instead, these were customers searching for an update on their current service—people who weren't likely to make a purchase.
Focusing on acquisition keywords is the best approach to get the best return on investment. These terms signal real intent to buy, such as "wedding venue Melbourne" or "best removalists near me". People searching for these keywords are actively looking for the service, which makes them much more likely to convert. In comparison, someone searching for a competitor's brand name may be too far along in their journey, with intent that doesn't align with your offer.
When and How to Target Competitor Keywords
I'm not saying you should never target competitor keywords, but it's important to approach it strategically if you choose. First, clarity is key. If you target a competitor's brand name, make it clear in your ad that you are an alternative to their product. For example, instead of trying to mislead users with generic messaging, say something like, "Looking for a wedding venue? We're an alternative to Brighton Savoy."
Transparency is critical. If you mislead users into clicking on your ad, you will likely frustrate them when they land on your site. This can lead to high bounce rates and poor user experience. On the other hand, if users are aware right from the start that they are clicking on a competitor's alternative, they're more likely to continue exploring your website. This approach reduces confusion and increases the chances of turning the click into a meaningful interaction.
Another effective tactic is to create a comparison page that clearly shows how your product or service compares to the competitor. This not only provides value to the user but also builds trust. For instance, if you're running ads targeting Xero's brand name, you could link to a landing page comparing Xero, MYOB, and QuickBooks. By doing so, you're positioning your brand as a thoughtful alternative and showing the potential customers exactly what they would get by choosing you.
Focus on User Intent
Above all, one of the most important lessons I've learned is the significance of understanding user intent. For example, if someone searches for "Brighton Savoy wedding reception", they might already have a booking or be trying to get specific details about an event they've already booked. On the other hand, if you target "wedding venues Melbourne", you're capturing people in the earlier stages of their decision-making process. You are more likely to be actively looking for a venue.
If you decide to target competitor keywords, it's important to assess how they fit into the broader picture of your digital marketing strategy. Is the goal to build brand awareness and visibility, or do you want to acquire leads that convert? Brand visibility can be useful; focusing on acquisition keywords will result in higher-quality leads, ultimately giving you a better return on your ad spend.
Final Thoughts: Understanding Your Marketing Goals
Whether or not you target competitor keywords should depend on your business goals. If you're looking for brand visibility and awareness, running ads for competitor key terms can help position you in front of a relevant audience. However, if you want to attract genuine leads and see a better ROI, focusing on acquisition keywords is crucial. There's no one-size-fits-all answer here, as each industry and campaign differs. The key takeaway is aligning your ad strategy with user intent and overarching marketing goals.
In my experience, campaigns targeting competitor keywords can work if executed thoughtfully, but focusing on acquisition keywords often delivers a better return. At the end of the day, the most important factor is understanding the intent behind the clicks you're paying for and ensuring that your marketing budget is spent wisely to generate high-quality leads.
