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  1. #1
    You Bet Your Life...Really lerxtjr's Avatar
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    Competitors on Adwords Have Me Baffled

    I'm pretty good with google adwords campaigns but this one has me baffled. The specific websites involved shouldn't be important. The concept is and affects everyone using adwords.

    I have a site that
    -has a budget of $160 and $300 a day
    -with $.85-$5 cost per click
    -with ads averaging in the 2-5 positions
    -and my budget is used up in about 6 hours.

    When I look at SpyFu (I know it's not something to really believe in since they only post their database about every six months), but odly enough spyful shows pretty close to what my numbers are.

    The Problem:

    There are two direct competitors with this site of mine.

    Competitor 1 shows on spyfu as (since mine was pretty close figure there's probably is too):
    -budget $107-$322 a day
    -$.75-$5.37 cpc
    -average position = 3.6
    But their ads are ALWAYS in the top position and they show any time of the day or night

    Competitor 2 is a completely different company that on spyfu shows:
    -$7 to $15 daily budget (!!!)
    -$.31 to $5.38 cpc
    -Average position is "8" but it's really not...They're ALWAYS in the number 2 slot and their ads are ALWAYS displaying day or night.

    In Summary:

    Competitors ads are displaying longer throughout the day, have better positions than my ads unless I'm willing to double my cpc, and they're spending less per day.

    Possible conclusions:

    -Maybe I'm getting a huge amount of click fraud going on to use up my budget everyday but I don't see in analytics that they're coming from any particular ip region
    -Maybe they've contracted a company that "owns" all of the words in my genre and they sell them cheap when bought in bulk
    -Maybe my ads have a lower "ad quality" which we've taken measures to fine tune already
    -Maybe they have a staff of people sitting around all day deactivating their ads every ten minutes and then reactivating them at peak times of the day when they know people are searching
    -Maybe they're just spending 15 times more money than I am and I just don't know it.
    -Maybe there's some kind of trick they're using that I just don't know about.

    Any ideas? This discrpency is something that effects everyone that uses Adwords.

    Thanks in advance.

  2. #2
    winter is around the corner Tomer's Avatar
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    I know what the problem is here - SpyFu!

    I searched a few sites that I know make millions of dollars in sales, thousands of orders per day and it says they spend a few hundred per day, common now. Don't rely on that - they have no way to know.

    Best bet is that your competitors are spending more then you think.

    - Tomer

  3. #3
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    Wow. You're spending that much on clicks? With conversion rate so low, your product must have a hell of a high price.

    Have you asked Google?

    Whenever I have such a question, or problem, they can answer it for me. And that's what they are there for, anyway.

    Good luck.

  4. #4
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    Tomer is right. While their results may give you some information, you can't rely on it to understand.

    I looked up a former client I worked for and the budget taking the top figure was about $1 MM over what we spent, the bottom under by $3 MM and that's a rather big range. Bid prices were also off. The numbers weren't horrible by any means but the ranges are so big it's virtually impossible to know what someone is doing versus what they could be doing.

    Odds are, the company in the #1 and #2 spots are getting good CTR or have a much higher CPC tolerance than you (maybe they have a lower cost of goods or just a much better conversion rate). Ultimately if you assume you both convert equally and sell the same average order size than they're just out clicking you and that will give them a better rank thanks to quality scores.
    - Ted S

  5. #5
    You Bet Your Life...Really lerxtjr's Avatar
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    Well, that's all very comforting, thanks to all. And yes, this is a higher end product, in fact a $4500 per day on-site training program so we are dealing with some pretty high traffic and limited keyword phrases.

    I had never heard of spyfu before until hearing from Michael Fortin that it's a pretty accurate system. Funny that he would promote something from the stage that is so far off from being accurate.

    I did consult with Google and they suggested I look at their qualifications for improving "ad quality" and yes that has helped some.

  6. #6
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    Spyfu is like a psychic. Keep guessing until you get it right then promote the one time of good fortune. Perhaps you were the one time it was right. No way a $15 budget could be #2 all day.

  7. #7
    You Bet Your Life...Really lerxtjr's Avatar
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    No way a $15 budget could be #2 all day.
    Right! That's why I thought maybe there was some "trick" I didn't know about. I remember one person approached me at a seminar saying his company "owned" a whole bunch of keyword phrases in the health industry. So you would never have a chance of getting on top in adwords for those phrases unless you paid them to manage your campaign. I never understood what that meant and thought that might be happening in this case. But, someone would've brought it up.

    Must be their daily budget is like $20K a day in reality or something.


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