Researching how much your competitors are bidding or pay per click is competitive intelligence.
Competitive intelligence can improve your business’s performance and show you where you may be missing opportunities.
Your competitors’ ad rank is dictated by their bidding and Quality Score.
It is impossible to know exactly how much they are bidding and spending for their keywords and for their ads to be on top of your ads.
However, use your analysis as a close indicator of what they may be bidding.
Est. first position bid | Est. first page bid | Est. top of page bid
Select the keyword your competitors are ranking on top of your ads to get estimated first position, first page and top of the page bids, this assuming you are bidding for the same keyword.
Keywords > COLUMNS > Modify Columns > Attributes.
Check Est. first position bid | Est. first page bid | Est. top of page bid.
Google Ads gives you an estimation of bids and positions.
In this case, the Max CPC bid for the selected keyword is €1.40, the estimated first position bid is €2.94, the first page €1.53, and top of page €1.78.
These figures are not exactly what your competitors are paying for that keyword if they appear on the top of the page or on top of your ads. You don’t know their Quality Score, and you can’t verify whether their position is as a result of a high Quality Score, their bids or both.
The Keyword Planner
Use the Keyword Planner to find keywords, search volume, and forecasts.
TOOLS & SETTINGS > Keyword Planner > Get search volume and forecasts.
Type your competitor’s keyword(s) that show their ads on top of your ads. For this example, I use the keyword ‘cordless drill’.
The Keyword Planner will not show your competitors’ bids, but it will give you an estimation of impressions, clicks, conversions, cost, average CPC, etc.
Click HISTORICAL METRICS.
Select Date (Last 12 months), Location, Language and Search networks.
Google Ads shows you Avg. monthly searches, Competition, Ad impression share, Top of page bid (low range), and Top of page bid (high range).
Top of page bid (low range) – this is the bottom results on the first page.
Top of page bid (high range) – this is the top results on the first page.
These figures are based on what advertisers have historically paid for that keyword.
Watch it on YouTube (Larger version)
Extract from my Book ‘Making Google Ads Work’.