Google Ads Optimization Score now reveals specific competitor impacts

Google’s Optimization Score, which provides recommendations to improve ad performance, has been updated to highlight the specific competitive pressures impacting impression share.

Why we care. This new feature gives you a clearer view of how major competitors like Amazon are affecting ad campaigns, helping you to make more informed optimization decisions. However, mimicking competitor strategy isn’t a great strategy and could just lead to unnecessary overspending. Approach this update with care.

How it works.

• Optimization Score now identifies when competitors are affecting campaign metrics.
• This provides advertisers with real-time insights into auction-level competition.

First seen. Google Ads expert Craig Graham, shared this discovery on LinkedIn:

Big picture. Understanding the role of major competitors is important for optimizing paid search campaigns effectively. This new visibility into auction-level dynamics could be a game-changer for many advertisers. However, it could just be a means of getting you to spend unnecessarily.

• “I definitely think it’s to encourage bidding more and FOMO [fear of missing out] on users to competitors that it thinks you’ll be worried about, but also an actually useful feature,” said Chris Chambers, head of Paid Search at Understudy, in response to Graham’s posting about this update.

What to watch. Whether Google expands this level of competitive transparency to additional Optimization Score insights over time.

Bottom line. By shining a light on the impact of rivals like Amazon, Google could be empowering advertisers to make more informed decisions to improve their search ad performance or it could be a ploy for more spend from advertisers who don’t want to feel like they are missing out on an auction where their competitors are present.