Your PPC guide to effective product category research

Launching a PPC campaign with carefully selected keywords and aligned ad copy is just the beginning. 

When campaigns underperform and budgets deplete, it often points to a strategic oversight: inadequate product category research. 

This common misstep can lead to targeting the wrong audience, missing key market trends, and wasting valuable advertising dollars.

This article addresses these challenges by offering a comprehensive guide to effective product category research. 

By mastering market dynamics and identifying hidden opportunities, you can transform underperforming PPC campaigns into successful, data-driven initiatives that deliver measurable, impactful results.

The cost of skipping product category research in PPC

PPC managers often face pressure to launch campaigns quickly.

As a result, they bypass crucial product category research and rush into building campaigns, uploading assets, and crafting copy. 

This oversight can have significant consequences:

Targeting the wrong keywords

Without a thorough understanding of the product category and audience intent, campaigns risk targeting irrelevant keywords. 

This can result in unqualified clicks and wasted budget. 

Consider a business that sells dance costumes. The keyword “dance costumes” is overly broad and lacks specificity. 

A more effective approach would be to target phrases like “dance costumes for girls” or “hip hop dance costumes.” 

These refined keywords help attract a more focused audience and improve the searchers’ experience.

Competing in the wrong markets

Targeting unsuitable geographic locations or demographics can significantly limit reach and waste ad spend. 

For instance, a company selling high-end organic, artisanal dog food may squander its budget on regions where consumers are less likely to afford or prioritize such products. 

Without proper category research, the company could miss high-potential markets, such as affluent urban areas, where demand is stronger and customers are willing to pay a premium.

I encountered a similar issue during consulting work for a dog training business. 

Regional trends heavily influenced the campaign’s effectiveness, highlighting the importance of aligning strategies with specific market dynamics. 

Users may click on ads expecting to find affordable solutions, but if they are not the right fit for the brand’s target audience, it wastes both the advertiser’s budget and the consumer’s time.

Missing key product value propositions

A lack of understanding of the nuances within a product category can undermine advertising effectiveness. 

Without this insight, creating compelling ad copy and targeted landing pages becomes difficult, reducing their ability to engage and convert the intended audience.

Consider noise-cancelling headphones. 

One company might emphasize technical features, while another highlights their ability to help users “escape workplace distractions and regain focus.” 

The latter approach taps into a growing trend as businesses encourage employees to return to the office, addressing the need for tranquility in busy environments, which could drive demand.

This focus on value propositions requires thorough research and data to support messaging points. 

• As Melissa Mackey noted in the PPCChat group, “So much research! Keywords, competitors, client category…” 

Skipping this research leads to wasted ad spend and low-quality leads. 

• Julia Vyse echoed this sentiment, pointing out that “There’s a lot of optimism/wishful thinking about how much insight you can get from digital platforms,” stressing the importance of conducting research beyond the platform.

In competitive industries, the consequences are even more severe. 

• Ameet Khabra emphasized in PPCChat, “I want to see what competitors are doing both nationally and locally.” 

Without this knowledge, businesses are essentially navigating the competitive landscape blindly.

How to do product category research

Product category research for PPC goes beyond simply identifying relevant keywords. It involves a deep dive into the following:

Understanding your target audience

• Define ideal customer profiles: Tools like Huckle offer valuable insights into customer demographics, interests, online behavior, and pain points. By using Huckle’s data analysis, you can better understand your target audience and tailor campaigns to meet their specific needs and preferences.
• Conduct audience surveys: Gather direct feedback through surveys to understand your target audience’s needs and preferences.
• Analyze customer reviews: Leverage customer reviews to glean insights into customer sentiment and identify areas for improvement.
• Use social listening tools: Tools like Sprout Social can help you monitor social media conversations to understand customer sentiment and identify emerging trends.

Competitive analysis

• Identify key competitors: Determine who your biggest rivals are in the market.
• Analyze competitor websites: Use tools like Semrush or browsing extensions to analyze competitor websites, including their keyword strategy, ad copy, landing pages, and unique selling propositions (USPs).
• Monitor competitor PPC campaigns: Tools like SpyFu or Semrush can help you track competitor keyword bids, ad copy, and landing pages.
• Analyze competitor performance: Track their organic search rankings and social media engagement using tools like Similarweb.

Market trend analysis

• Utilize Google Trends: Identify seasonal trends, emerging technologies, and changes in consumer behavior using Google Trends.
• Stay updated on industry news: Follow industry publications and blogs, and attend conferences to stay abreast of the latest developments.
• Analyze competitor landing pages: Examine competitor landing pages to gain insights into their calls to action (CTAs) and strategies for optimizing conversions.

Keyword research

• Go beyond basic keyword tools: Use tools like AnswerThePublic, Ahrefs, and Moz to uncover long-tail keywords and identify relevant search queries.
• Analyze search intent: Understand the underlying intent behind each keyword. Are users looking for information, comparing products, or ready to make a purchase?
• Group keywords by theme: Organize keywords into relevant ad groups to improve campaign efficiency and gain more insight from the platform data. Using dynamic ad groups can help discover new keywords that can later be added to standard search ad groups.

Dig deeper: PPC keyword strategy: How to align search intent with funnel stages

Exploring product categories from multiple perspectives

To maximize the impact of your PPC campaigns, it’s essential to view product category research from multiple angles.

Broad category research

To build a well-rounded perspective, start with an overarching view of your entire product category. 

This provides a broad context for understanding industry dynamics, major players, and overall market trends. 

For example, in the makeup industry, you would research trends and consumer behavior across the whole sector, analyzing market growth, dominant brands, and major shifts.

Segmented category research

Narrow your focus to specific segments within the broader category. 

Continuing with the makeup example, this could involve researching affordable makeup, eco-friendly cosmetics, or niche segments like eye makeup or foundation. 

Each segment has unique consumer behaviors, preferences, and competitive dynamics.

Adjacent and related categories

Explore categories that influence or are influenced by your primary category. 

For makeup, fashion and lifestyle trends often shape consumer preferences. 

Monitoring adjacent product categories can provide insights into complementary product strategies, cross-promotions, or broader shifts in consumer sentiment.

Influences of external market factors

Economic conditions, cultural shifts, and technological advancements significantly impact product categories and consumer behavior. 

Monitoring these external factors allows businesses to maintain relevance and adapt their strategies accordingly. 

For instance, as companies implement return-to-office policies, there may be a renewed demand for makeup products. 

Additionally, a rise in demand for subtle, easy-to-use makeup could emerge, as many women may seek a gentle reintroduction to makeup application after extended periods of remote work. 

Understanding these shifts enables more strategically aligned marketing and product development efforts.

Broad economics

Finally, consider the broader global context. 

• How is the economy performing? 
• What is the sentiment among consumers? 
• Are we in a period of heightened consumer activity (i.e., the holidays) or a phase of reduced spending (e.g., the summer months when people are more focused on outdoor activities)? 

Assess whether these trends are seasonal fluctuations or indicative of a larger macroeconomic shift.

The experts weigh in: Essential PPC research strategies

To gain further insights, I turned to the PPCChat Slack Group, an invaluable online community of PPC professionals led by Julie Bacchini. 

Here’s what some of the top minds in the industry had to say:

• “Competitor research helps you identify opportunities your competitors might be missing,” states Jordan Stark.
• “PPC is not a ‘set and forget’ endeavor,” emphasizes Jeffrey Hain, advising regular monitoring of trends and adjusting strategies accordingly.

How PPC experts approach their research

Keyword research

• Experts like Hain and Reva Minkoff rely on tools such as Google Keyword Planner, Answer the Public, and Semrush to identify high-performing keywords, with a key focus on keyword intent. 
• Chris Murray emphasized, “Understanding whether a keyword serves the query’s intent directly or indirectly is crucial for success.”

Competitor research

• “You’re like a spy uncovering your competition’s strengths and weaknesses,” says Stark, highlighting the detective work involved in understanding competitors.

Ad copy testing

• Vyse poses an essential question every PPC manager should ask: “What’s the reason people are going to want this thing?” 
• This focuses on crafting ad copy that resonates with the target audience.

Audience and offer analysis

• “I ask a TON of questions—this direct feedback from clients is a form of research of its own,” I pointed out in the conversation, emphasizing the importance of client input in understanding audience needs.

Auction Insights

• Hain stresses the value of routinely reviewing Auction Insights within advertising platforms to “evaluate competitor behavior,” providing insights into campaign positioning.

Research is an ongoing process according to experts

• “Research is an ongoing process,” is a consensus among experts. Campaigns are dynamic, as are industry conditions and consumer behaviors. Vyse mentions being “committed to ongoing, year-long dashboards” to track performance and uncover trends.
• Mackey and Stark both emphasize running keyword analyses monthly, with competitor research taking place quarterly or during new campaign launches. Hain shares his approach of using rolling reports (30-day averages) to actively monitor shifts in trends.
• Robert Brady succinctly explains the importance of ongoing research: “With automation driving campaigns now, you need solid research to ensure the algorithms feed on the right signals and data.”

Tools for PPC professionals

Here are some tools mentioned in the conversation last week in PPCChat:

• Semrush and Google Keyword Planner: For keyword research, ad text comparisons, and general trends.
• Answer the Public: To understand popular consumer questions.
• Auction Insights: Available within ad platforms like Google Ads or Bing Ads.
• SpyFu: While some debate its effectiveness for tracking spend, others leverage it for competitor intelligence.

Challenges in PPC research according to the paid search community

• “Many tools offer directional insights but lack precision,” notes Hain, highlighting the challenge of data accuracy. For instance, Semrush might report spend estimations far lower than actual budgets.
• “Finding time for thorough research was a challenge they faced regularly,” shared both Brady and Minkoff.
• “Magical thinking from clients,” as noted by Vyse, refers to unrealistic client expectations regarding the availability of insights in the post-iOS14 restriction era.

Mastering the art of PPC research

Despite the challenges, PPC professionals remain dedicated to driving better outcomes through research. 

The key is blending actionable data with creativity and avoiding the trap of simply mimicking competitors. 

• As Hain advises, “Instead, distinguish your campaigns by staying true to your unique value proposition.”

Remember, research is not a one-time effort but an ongoing process. Regularly revisiting and refining your findings is essential to staying competitive in the PPC landscape. 

• Stark emphasizes an important perspective on competitor analysis. “If you find opportunities your competitors aren’t capitalizing on, like exploring new ad formats or placements, you can gain an advantage.”

Ultimately, success in PPC research comes down to consistent investment of time and a willingness to experiment. 

There’s always more data to uncover and insights to act on. So keep researching, testing, and optimizing your campaigns to achieve maximum results.