If you've been struggling with a drop in your Google Ads performance lately and can't quite pinpoint the cause, this newsletter might help you find some answers.
We’re going to build a simple chart that reveals exactly what your competitors have been up to this year.
This chart allows you to see any big moves your competitors have made in Google Ads, along with when those changes occurred.
It could explain why your ads aren't performing as they used to — often, a drop in your results can be linked to aggressive strategies from competitors. And the best part? This chart template is completely free and easy to set up.
Building the Competitor Analysis Chart
To get started, we're going to use a tool from Mike Rhodes called the Auction Insights Tool. Credit where it's due — Mike has a lot of fantastic tools, and many of them, including this Auction Insights Tool, are available for free.
Here at Big Flare we have found them invaluable, including this specific tool for analysing competitor behaviour.
Step-by-Step Setup
First, head over to this link, where you can grab the template file.
Here's a quick walkthrough:
Download the Template: Once you've clicked the link, make a copy of the sheet for your Google Drive.
Download Auction Insights from Google Ads: Navigate to your Google Ads account and head to the Auction Insights report. While Mike suggests setting your date range to the last 90 days segmented by week, I prefer selecting year-to-date for a broader view of overall trends.
Go to the date selector, choose Year-to-date, and apply the settings.
Ensure both campaign and ad group statuses are set to All.
Segment and Export Data: You can segment the data by time and select Month. This helps in getting a monthly view of competitor activities. Download the report for Search campaigns, and repeat the process for Shopping campaigns.
Make sure you save each report with the correct naming convention: Account Name + Search/Shopping. This is important because the tool relies on these names to organise your data.
Integrate the Reports with the Template: Once the data is downloaded, upload both reports to a dedicated folder. You then need to grab the Folder ID from the URL to integrate the reports with the template.
The folder ID is a unique identifier found in the URL of your Google Drive folder. Copy this ID and paste it into the designated cell in the template sheet.
Run the Tool: After pasting the folder ID, you can add the menu item to the Google Sheet and authorise the script. Once done, use the Auction Insights menu to Import Data, and you should see lovely charts depicting your Search and Shopping campaigns.
Real Examples of Competitor Analysis
Once you have this chart, you'll want to understand what it's telling you.
Let me share a couple of examples from real client scenarios to illustrate how this analysis can be useful.
Example 1: The Mystery of March Decline
We had a client who was struggling to maintain their revenue levels after March.
In the months prior, they were comfortably leading in terms of impression share, dominating their niche. However, our auction insights analysis revealed that a major competitor had begun to aggressively increase their impression share starting in March. This shift coincided exactly with the dip in our client's revenue.
In this scenario, the black line in the chart represented our client, and the coloured lines represented competitors. We noticed that, post-March, a specific competitor was vying for the top position. This competitive pressure directly impacted our client, causing a drop in both impression share and revenue.
Our strategy after discovering this? Focus on efficiency. We moved into "profit mode" — ensuring that each click was as efficient as possible, rather than trying to outbid the competitor in an expensive battle for the top spot.
Example 2: Dominating Doesn't Always Pay
Another client launched into Shopping ads earlier in the year, and they were keen to dominate. Their impression share climbed rapidly to 80%, but we soon realised that this aggressive approach was hurting profitability.
When we did the analysis, we saw that the period where they had the highest impression share correlated with lower profitability. Sure, revenue was up, but the cost to get that revenue was far too high. In this case, we recommended pulling back slightly, which meant raising the target return on ad spend (ROAS) in their campaign settings.
This shift resulted in lower revenue, but it drastically reduced the costs, improving the overall profitability of the account. More profit, fewer headaches.
Why Competitor Analysis Matters More Than Ever
These examples highlight a crucial shift in the way we approach Google Ads. It's less about tweaking campaigns with a bunch of manual optimisations, and more about truly understanding the data and making strategic moves based on that insight.
When you see a drop in your Google Ads performance, it's often not just your settings that need to be fixed. It could be an external factor — like a competitor making a big push. That's why having tools like this competitor analysis chart is invaluable.
By understanding how your competitors are shifting their strategies, you can adjust yours accordingly, whether that means defending your position or stepping back to improve efficiency.
If you've been seeing drops in performance, I highly recommend using this chart to look at what's happening around you. The insights can make a real difference in your strategy and profitability.
Conclusion
Competitor behaviour often drives unexpected shifts in your campaign performance, and the auction insights chart is a powerful way to visualise these changes. By following the steps I outlined, you can see where your competitors are gaining ground and how it correlates with your own performance. Whether it's stepping back to increase efficiency or doubling down to reclaim lost ground, understanding these dynamics is key to making profitable decisions.