Have you ever searched online for a brand or product, only to see an ad for a competitor pop up above the search results? If so, it’s probably the result of competitive poaching: an advertising strategy in which a brand hijacks a competitor’s ad keywords in an attempt to capture their customers. This tactic, while perhaps sneaky, isn’t against the rules — and it’s more common than you might think. But does poaching really pay off?
When Keyword Poaching Pays Off
New research looks at when it works to bid on ads for a competitor’s keywords — and when it backfires.
May 13, 2022
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Summary.
Competitive poaching refers to the practice of bidding on ads for a competitor’s search terms, in order to poach customers searching for that brand. It’s a common tactic in the world of digital ads — but is it effective? The author shares results from the first-ever empirical study of this practice, which found that poaching can work well for higher-end brands, but may backfire for lower-end or mass market offerings. Specifically, the study found that when an ad poached customers who searched for a high-end brand, users clicked on it more, but when an ad poached a low-end or mass market target, users were less likely to click. Of course, the author notes that clickthrough rate is just one metric, and there may be other ways in which a poaching campaign could be harmful or beneficial. But these findings can help marketers add a bit of science to the art that is digital advertising, helping them to optimize campaigns for their unique products and customers.