Competitive Analysis Tools.. Is this The End of Adwords as We Know It?
Posted: May 21st, 2007 | Author: Matt Levenhagen | Filed under: Tips & Advice, Tools of the Trade | 15 Comments »I wanted to take a few minutes and talk about the new fangled automated competitive analysis tools coming onto the market. I”m not going to mention any specific one; I’m quite sure most of you reading this might know one particular new one that sparked this.
The reason I want to handle this subject is some are marketing it as though it’s changing the game so profoundly that if you don’t own one, you might as well pack your bags and go home. And that’s to be expected because they want you to buy their tool.
But I care a lot about the average person trying to build an Adwords and Affiliate Marketing business that may not want to use these type of tools, can’t or just plain can’t afford it.
I tend to stay in the trenches a lot as a coach. I don’t use a lot of pricey tools because I teach a lot of people that don’t have them. So I play the game with some advanced methods and tools, but I also play the game from the perspective of people that don’t have them. It just simply makes me a better coach.
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WHAT DO THESE TOOLS DO?
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Basically they track keyword markets over time and figure out what keywords are profitable for what merchant and affiliate.. it gives you all their data including the URL.
The idea is to track them over time.. the ones that are there for long periods of time are most likely to be profitable. Simple.
In one of the latest tools to hit the market, it not only automates the process of studying these niches, but it is tied into a piece of software that creates and tracks the campaigns for you.
Pure automation.
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THE QUESTION TO BE ANSWERED…
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The question I want to answer with this article is…
Where does software like this that uncovers profitable campaigns and automates the whole process leave those who don’t or choose not to use this type of software?
Here’s why I think.. everything is going to be ok. This is NOT the end of marketing as we know it.
1) This software can’t learn about new merchants coming onto the scene. Some niches marketers aren’t profitable, but a new or different merchant might convert better.
2) It can’t learn about or follow Trends and follow the buzz.. While others are studying current markets, you could be watching things like:
3) It can’t learn about new markets that open up or have yet to be discovered. Maybe you have certain qualifications that will make you affective in markets no one else could.
4) It will be difficult for software like this to know for a long time all the influences of holidays and seasonal trends.
5) It does not tell you anything about niches that contain poor affiliates/merchants. There is still a TON of opportunity to find new niches without using these type of tools
If you come into a keyword niche that has someone there that found that market using this tool.. they emulated another affiliate there… and is promoting the same merchent etc.., what if you Blasted a campaign in there with an entirely different merchant? Or what if you had a landing page and the other didn’t?
There a millions of possibilities..
6) The approach is only step 1.. it’s still up to you to do better then the merchant you are emulating. So there is still room for competition and the best man/women wins.
7) **AND MOST IMPORTANTLY** This type of software doesn’t automatically make the people using it good marketers… Remember that!
So no one needs to shake in their boots if they can’t get this type of software or don’t want to. It’s based on an approach that can only do so much.
I just want to make it abundantly clear that these tools, though powerful, are just one way; one method..
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THIS IS JUST A TOOL
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..They do not replace all the other skills you need. They don’t magically make you a good marketer. It should be your goal in the first place to learn how to market using a variety of techniques including:
–Using Audio & Video
–Capturing E-Mails
–And Web 2.0 Techniques
You still need to learn how to build a good site.. Even better then those you are emulating.
I don’t have a problem with these type of tools. Competitive Analysis is not new. I’m sure since the dawn of man we have been analyzying the competition and seeking out weaknesses or moving into their territory to get a bit of their business (or food).
But I am afraid the good marketers.. even if they do truly mean well.. might squash some dreams and strip hope away from those who have thought about pursuing affiliate marketing and Adwords. It might stop someone from acting if they see this and maybe can’t afford the
software or don’t want to use it for this reason and that..
I’m telling you to forget about it.. I use the tools to some degree, but it is a very small degree. I spend most of my time doing actual marketing, using the Blast Method and expanding my already profitable campaigns.
I hope this makes sense and helps clear up some questions and concerns.
Though I agree some of the more popular niches and affiliate networks might be more prone to this software and it might upset established marketers, overall it’s just a drop in the bucket in terms of the real affect.
And remember, once you find some great niches, you probably won’t have time to even use the tool as much because you’ll be expanding your campaigns in other ways. Maybe you’re already there?
-Matt Levenhagen
Hey Matt,
Great piece. It’s so easy to get caught up in the hype and spend more time running from one “tool” or gimmick to another rather than getting any work done.
Ah, how wonderful it would be if we could spend $$ and automate financial success and abundance, wouldn’t it?
Good to hear that common sense, hard work, and savvy marketing still might pay off inn the long run!
Good assessment, Matt. I always felt those particular tools were more hype than substance.
I can’t truly be a judge, not owning them or using them, but my profits haven’t gone down since they appeared on the scene.
Thanks Matt,
Your assessment is good.
I think the point here is focus.
I am sure there is value in those tools, but the point here is we need to use our brain to properly use the tools in order to make it.
Recently, I have been reading some threads on some popular IM forum. I particularly paid attention to the buyers of those users who pay $300 a month membership club are VERY contented with what they’ve got, so I am guessing that it must be of value.
I also agree to your article that for campaign blasting readers, we should just simply forget it, no matter it is UXX or GXX; just focus on the market that you are more inclined to and get it real tough yourself.
Having those tools is at times a overkill, we just don’t have the time to do it all.
Because the market is big enough to feed MANY more internet marketers. Adword is not dead, but it’s for those who use it with their brain, motivation, and focus.
Yours Truly,
Roy
Timely article, Matt, I was just debating this with myself last night. My conclusion is that if you want to bark with the big dogs, you almost HAVE to have one of these tools. Although the environment is very competitive now, it will become more so in the near future.
Say you have found a profitable niche. Your program is making cash, keywords are converting…then another marketer jumps in, takes top spot, and makes your money his. You either have to compete head-to-head against somebody with superior market intelligence, or leave the niche and find another.
Meanwhile, the other marketer is finding 5 other niches to do the same thing in, while you are still trying to find one niche manually. Even if you do find another good one, who is to say you wont get taken out by another software user?
I dont mean to sound negative, but the first people who are good marketers, have the bankrolls for the campaigns, and have the tools will clean up for the next several months.
IMHO the people just getting started or on a small bankroll face a tough road ahead.
I would think the PPC sellers would be taking an interest in this, it seems like the ad cost would jump up, but then they will be losing money as unproductive campaigns and keywords are dropped, and as competition for profitable keywords increases, but total volume declines.
Once again, great article, thanks, Brad
Hello Matt,
As I recall you came to a similar conclusion when Nikhil Parekh released PPC Takedown 1.5 years ago. Nevertheless, Nikhil was able to get his personal PPC profits up to $30,000 per month by using his tool – and that was over a year ago. I can only speculate how much he is making now.
This new tool, which is a much more sophisticated and easier to use than Nikhil’s tool – should be a major advantage for some marketers who want to skip the creative process and just copy guaranteed successful campaigns.
Will a general release of a tool like this change the market? Sure it will. Make no mistake about that. But it’s also true that the market is huge and there are an infinite number of successful ways to make money. Unfortunately a tool such as this makes it much more difficult to cruise along resting on your laurels of your “money” campaigns. So successful creative marketeers are going to be challenged – like never before – to be very diversified in order to stay ahead of the curve.
—Sha
Hi Sha.. long time no see.
Yes, he was indeed waaaaaaaaay ahead of everyone else with the release of takedown; at least publically.. I have talked with people that are doing what he was doing at that time on far larger scales; but privately…
And I’m sure he did make good money with it as others…
Don’t get me wrong.. it’s not that I’m saying these programs don’t work. Although.. lol.. it’s not quite as cut and dried as watching a campaign for a period of time and if it is still there it’s profitable. It could be Junior just forgetting about it or not tracking his campaigns etc..
But as you agreed with, the net is huge. And the marketer is not going to make a lazy income as they once did. This is why I encourage depth and even branching out with your profitable campaigns integrating more the one traffic source.. capturing e-mails etc..
There are things you can do that will protect you from anyone infringing on your territory.
Will newbies find it more expensive and harder in the future.. yes, with some approaches. They are just going to need to focus on being more creative and using techniques that will at least in the short run while their learning the ropes bring the profits.
The markets changing to a degree.. but I don’t see entry level opportunity ending.. just shifting.
Great comments!
-Matt Levenhagen
[...] One of our members at 5 Bucks a Day, Matt Levenhagen, has written an insightful blog post on the subject here, which you should read: http://blog.campaignblasts.com/competitive-analysis-tools-is-this-the-end-of-adwords-as-we-know-it.htm [...]
Matt,
As ‘newbies’ into the wider marketing arena I have wasted a good amount of money in the past 4 months on ‘guaranteed income opportunities’. This included purchasing Keyword Analyser and Dominator which I am still to master and put into action.
The ’subject’ tool would certainly be attractive to someone starting out who hadn’t clicked with campaigns etc and just wanted to get to the cash end of town in a hurry.
While the marketers of this particular tool say it is legal I wonder if it is really ethical. Being ethical doesnt always fill your bank account but it makes you sleep better at night when you do it the hard way and succeed.
I have a problem with the principal of the software and it will be pricey as well. The next thing will be some ‘detective’ software that can scan others coveting their campaigns and enable a reverse attack to be mounted.
While they fight it out the ‘educated’ marketer will keep on keeping on with the tried and tested ‘high morale ground’ methods.
Just my thoughts as a ignorant newbie.
Keith Wilson
Good post Matt. I think you’re right: the new competitive analysis tools on the market don’t factor in all of the variables in a campaign. I’m not going to lose too much sleep over this right now, but I’m definitely going to be more attentive to my campaigns.
Rather than trying to “steal” a market away from someone else, I think my time would be better spent Blasting new campaigns to find my own niche markets. Once I find a profitable niche, it’s then up to me to expand the campaign, and stay on top of it by constant testing and improving. On the other hand, these tools will likely mean certain doom for the lazy marketer who thinks he can just “set it and forget it” and let those “obscene profits” roll in to his bank account, lol.
Hi Matt
Interesting article. I recently joined UnderCover Profits when they launched. I monitored a lot of campaigns. Set up several that appeared to be running a long time so presumably profitable. I only managed to make 1 profitable and that has since stopped earning as probably more people discovered it too.
A lot of factors are involved, this software doesn’t tell you every keyword that people are using, it just monitors campaigns for the keywords that you think they may be using. There may be a lot more keywords that actually make the difference between this being a profitable or unprofitable campaign. I tried to get my ads to run at the same level as the ’swiped’ ad, ie if it was positioned 3rd for a keyword then that’s what you aim for. I still couldn’t make most of these campaigns profitable which just means that for some reason Google probably set the prices higher for me. Maybe the other person started off paying a lot more for his clicks so got a good ctr and was able to lower his bids over time. There are many factors that may be involved here and just finding long running ads are only a small piece of the puzzle.
The campaign that was successful then stopped making money. For some reason I was getting a similar amount of clicks but they weren’t converting. I noticed eventually that the guy that was successful with it originally, started running his ads just over the weekend from Thursday to Monday. One way to beat this monitoring software would be to pause your campaigns on quieter days as the software monitors for campaigns that are running continuously.
Jan
Thanks very much for the clear thoughts on GCD and UCP.
I agree with your assessment that where you are taking these visitors and what you are doing with them there is more important than monitoring everybody else’s campaign.
In any case, if you are in a heavyweight market you will be looking at the SERPS often enough to know what your competition are doing and what ad positions they are bidding on. And your competition will be doing the same thing.
People shouldn’t be buying these tools until they can make good money doing it manually. It’s not the skis, it’s the skier.
New tools and technoolgy continue to roll out and make it difficult for the guy trying to play fair. Everyone’s cheating to get ahead.
These tools aren’t cheating.. they are doing what businesses online and offline have been doing since the beginning of time. Competitive Analysis.
They just make the data collection easier and quicker so you can spend more time implementing the intelligence you gain. Everything these tools do you could do on your own.. it would just take a lot longer and would be more tedious.
It would be like saying it’s not fair for an author to use a Microsoft Word to write his book rather than just pen and paper. Progress my friend.
-Matt Levenhagen
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