PPC
Understanding Keyword Cannibalization
October 28, 2024
Most brands will use pay-per-click (PPC) and search engine optimization (SEO) to acquire new customers. While SEO and PPC are often complementary, they can overlap, leading to the cannibalization of search terms or users. Suppose a brand is paying to acquire a user from the search engine results page where it is not incremental to their business as organic search would have acquired that user. In that case, it is defined as PPC cannibalizing SEO.
This has become more common over recent years as PPC teams have moved away from targeting exact-match keywords to broad-match and automated campaign types, which offer less control over where they show.
To identify areas of cannibalization, brands will typically look for paid search queries they are bidding on, where they rank p1 in the organic result, and there is no competition. The overwhelming majority of these cases are their own branded terms.
Identifying instances of cannibalization in this way can be difficult for several reasons:
For these reasons, creating a structured plan to understand and address areas where PPC may be cannibalizing your SEO efforts is essential.
We have created a process to prevent cannibalization that should be adopted within your SEO & PPC campaigns.
The reason for cannibalization is when both channels target the same keyword. This often occurs when teams do not communicate with one another. We suggest that keyword research becomes a joint piece of work between departments, with teams sharing lists of keywords that include:
This list should be used to prioritise target terms within the SERP for both paid and organic, creating an easy way to identify keywords overlap. Both teams can create joint keyword strategies, perhaps focusing PPC on areas where SEO underperforms.
Due to SEO keyword restrictions outlined earlier, there is no simple way to monitor for keyword cannibalization issues within Google Analytics. If you have resources available, it is possible to use BigQuery and Google Looker Studio to produce combined reports or even tools like Supermetrics. If not, Google Sheets can be used to enter data manually. We'd normally create reports that show:
Combining this data at a keyword or keyword group level will give your teams a quick way to investigate potential areas of keyword cannibalization in their day-to-day reporting. As mentioned earlier, it's essential to understand where automation within your Google Ads account is causing ads to show by regularly reviewing the search term report.
The ultimate form of understanding cannibalization between paid and organic is incrementality testing. This tells you how many incremental conversions your ad campaign drives or what would have happened if you weren't running ads.
It is possible to conduct this type of study in Google Ads , called conversion lift studies, with the aid of a rep. This splits ad delivery into two groups: one who sees the ads and one who would have seen the ad but doesn't and sees whatever the following ad in the auction is (or no ad if there wasn't another one). At the end of the study, Google will compare the results for both groups to calculate how many of the conversions were driven by the ad being shown vs. those that would have occurred anyway.
Outside of Google running the incremental test themselves, brands can run a hold-out test to understand whether PPC cannibalises SEO. This requires brands to effectively turn off ads for a defined period and compare that to a previous period to determine whether the paid search ads added incremental conversions or were taking those SEO would have collected anyway. To do this, we recommend:
Once you know where PPC ads compete with organic results in a non-incremental way, you can fix keyword cannibalization. The quickest way to do this is to apply negative keywords to your Google ads campaign to stop PPC from appearing for non-incremental keywords. The drawback is that while this stops SEO and PPC from targeting the same query, it isn't reactive. If a competitor starts bidding, it may not be until you identify a decline in organic click-through rate that you realise there is an issue and are losing conversions. This makes it unfeasible for your PPC team to manage on any large scale.
Once a cannibalization strategy is in place, there are other ways SEO and PPC campaigns can work together. These include:
Cannibalization occurs when PPC and SEO target the same keywords, and it harms your business as you are paying for conversions you would have got anyway via organic. Common signs that you are cannibalizing organic is bidding on terms with almost no competition, where you rank number one in organic, typically on brand terms.
Diagnosing cannibalization at scale is challenging. Joint keyword targeting and reporting and a series of structured tests are steps to avoid it.