Bidding is a kind of the game, where everyone can become either a winner or a loser. You can bid on the competitors and gain much profit. All these steps are rather risky, but they can bring luck to the business. Sometimes it looks like a race, but you need to decide if you are […]
Bids – why are they important in marketing?
Bidding is a kind of the game, where everyone can become either a winner or a loser. You can bid on the competitors and gain much profit. All these steps are rather risky, but they can bring luck to the business. Sometimes it looks like a race, but you need to decide if you are a leader or just a participant.
What does it mean to bid on a competitor?
When you decide to do it, be aware, that there are two sides of it. It has both advantages and disadvantages. The main idea is connected with looking for ads that are similar to yours. For example, if you are an owner of McDonald’s, it will be reasonable to look for the ads of KFC. There can be several reasons why it can become important to bid on your competitors.
Winning clients’ attention
If you are just appeared on the market, it would be hard for you to win the clients. All the beginner companies need some time to find their way. It is due to the fact, that the market might be overloaded with the similar offers. So, it means that the clients will likely choose a competitor that is more familiar to them than your company.
The solution of the problem can be done with the help of your rivals’ ads. You know that successful companies have large audience. They have gained it because of many things, including good service, high-top quality and so on. This is just the way what you need to do. Use references of your brand to other well-known companies. Probably, it can bring good to the company. When the users are looking for exact brands, they can find your offers.
Use the advantages of your competitors fail
When one of the competitors is closed, it is a great opportunity to use its naming. People won’t know instantly that the company was closed. If you are aware of it, you can use the method of bidding to get instant profit. In other words, the brand doesn’t provide clients with the goods they used to buy. Instead of it, the clients see your brand, and it is the simplest way for them to buy similar things.
The only recommendation here is not to play this game for a long time. Sooner or later, the majority will know that the company isn’t running anymore. It leads to the fact that the frequency of search will be reducing. If you mentioned the company with your own naming, it would be a failure as the clients wouldn’t see your offers. The recommended time to gain profit is about two weeks. Then, most of the clients will disappear because the company doesn’t work anymore.
It may happen that playing such a game can become quite risky. It is connected with the fact that the situation can be played vice versa. As a result, it can lead to a local war. The consequences of this game can look like this:
- The click price becomes so expensive;
- Reducing the audience;
- Little conversion.
If your competitor has almost the same volume, it will be difficult to win the war. Even if it is smaller, the game is not worth the candles. As a result, you will face constant growing CPC and CPA. It won’t bring you much good.
How to start bidding?
It is quite easy to start bidding. You need to log in your personal Google account for it. It is recommended to start a new company. The main rule here is not to include search partners. It will help you to limit bidding.
As for starting the company, it will be reasonable to create a single separate company for targeting. Then you will need to divide it into several groups. It will give the chance to work with the competitors separately. Besides, it is necessary to analyze the volume of each competitor. The largest ones should be singled out as it can lead to extended expenses on the company. Besides, you need to plan the expenses, as big competitors usually take more money to work with.
How to manage bids?
When you decide to apply for bidding, there can be several approaches to it. First of all, you should take into consideration the budget available for this action. If you are a lucky one, and have no limit for money, it changes the situation greatly.
If you have enough profit, you can invest in bidding rather big sums. It will allow you leading a rather aggressive attack on a certain company. You can manage the potential result of the process. You just need to state CPA or ROAS to correlate it with the volume of conversion.
Another approach is when you are not going to take up the leading position in the web search. Here is another instrument used for it. It is known as Target Impression Share. In fact, while using this tool, you will be mentioned among other brands. Your company will be mixed among other similar. You won’t take the first place, but still will be on the top of the search.
What to pay attention to?
Though, the ads companies are working automatically, you need to follow the process. You need to control what is going on there. You can do it by checking the list of phrases. If you use the Exact Match, you should control it for direct and indirect requests. In other words, if there is a misprint in the request, it is possible. At the same time, you can see that there might be some requests that are not related to the topic.
The most important fact that should be noted is the volume of trade. In fact, the level of conversion is the most actual point. When it is connected with the e-commerce, you can easily see all the necessary positions. You should also pay attention to leads. They can be observed with some difficulties, but it is still important. You need to correlate MQL and SQL levels. While generating leads, it becomes more difficult to value the real conversion.
All these steps have sense when two brands are incomparable. It is better if your brand is smaller than the bid-brand. You can bid on larger companies. In this way, you can enhance the conversion. If the situation is vice versa, it is rather risky. If you understand that your brand is bigger than the bid-one, you’d better give up the idea. The result of it can be worse than you might expect. It doesn’t always lead you to profit. The same situation is with the companies that are almost equal.