70% of Advertisers Get Auction Insights Wrong – Here’s Why

How to Use Google Ads Auction Insights to Spot Competitor Trends and Improve Campaign Performance

When most advertisers think about competitor research in Google Ads, they usually head straight to the Auction Insights report, glance at the list of competitors, compare impression share, and stop there.

But that approach barely scratches the surface.

The Auction Insights report can reveal far more than just who else is advertising on your keywords. When analysed properly, it can help you uncover competitor behaviour, understand market shifts, identify aggressive advertisers driving up costs, and spot opportunities to improve your own campaign performance.

In this guide, we’ll walk through a smarter framework for analysing Auction Insights data and show you how to turn it into actionable insights that can directly improve your Google Ads campaigns.


What Is the Google Ads Auction Insights Report?

The Auction Insights report is a feature inside Google Ads that compares your campaign performance against other advertisers competing in the same auctions.

You can access it by navigating to:

Google Ads → Insights and Reports → Auction Insights

The report provides several important metrics, including:

  • Impression share
  • Overlap rate
  • Position above rate
  • Top of page rate
  • Absolute top of page rate
  • Outranking share

At first glance, this looks like a standard competitor comparison table. However, the real value comes when you start analysing how these metrics change over time.


Understanding the Key Auction Insights Metrics

Before diving into advanced analysis, it’s important to understand what each metric actually means.

Impression Share

Impression share shows how often your ads appeared compared to the total number of impressions you were eligible to receive.

For example:

  • Yelp may have a 23% impression share
  • Your business may have a 17% impression share

This means Yelp is appearing more frequently in auctions than you are.

A common mistake advertisers make is assuming they should aim for 100% impression share. In reality, achieving complete dominance usually requires extremely high budgets and aggressive bidding strategies that aren’t financially sustainable for most businesses.

Instead, impression share should be used as a benchmark to understand market visibility relative to competitors.


Overlap Rate

Overlap rate shows how often another advertiser appears in the same auction as you.

A high overlap rate means:

  • You frequently compete against that advertiser
  • Your campaigns are targeting similar searches
  • They are directly influencing your auction environment

This can be particularly useful when identifying your true competitors versus advertisers who only occasionally appear.


Position Above Rate

This metric tells you how often another advertiser ranks above your ad when both of you appear in the same auction.

If a competitor consistently outranks you, it may indicate:

  • Higher bids
  • Better ad quality
  • Stronger ad relevance
  • Larger budgets

Top of Page Rate and Absolute Top of Page Rate

These metrics measure how often ads appear:

  • At the top section of Google search results
  • In the very first position

These positions typically attract higher click-through rates and more visibility.


Outranking Share

Outranking share measures how often your ad ranked above another advertiser’s ad or showed when theirs did not.

This helps gauge how competitive your campaigns are relative to specific competitors.


Why Most Advertisers Use Auction Insights Incorrectly

The problem with the standard Auction Insights report is that it only provides static snapshots of data.

You can compare competitors over a selected date range, but you can’t easily identify:

  • Competitor behaviour changes
  • Market shifts
  • Seasonal trends
  • Aggressive bidding periods
  • Sudden drops in competition

Simply reviewing the table view makes it extremely difficult to understand what is actually happening in the market.

That’s where custom reporting becomes far more powerful.


How to Build a Better Auction Insights Report

Instead of relying solely on the default table, you can use the Google Ads Report Editor to visualise competitor trends over time.

This transforms Auction Insights from a basic comparison tool into a powerful competitor intelligence system.

Step 1: Open the Report Editor

Inside Google Ads, go to:

Insights and Reports → Report Editor

The Report Editor allows you to combine metrics and visualise trends far more effectively than the default reports.


Step 2: Select Search Impression Share Auction Insights

Create a new report and choose:

Search Impression Share Auction Insights

This pulls in the same competitor data you see in the standard Auction Insights report.


Step 3: Choose a Larger Date Range

Instead of analysing a few days or weeks, select a broader date range such as:

  • Several months
  • A full quarter
  • Six months or more

Longer time periods reveal trends that short snapshots often hide.


Step 4: Convert the Table Into a Time Series Chart

This is where the real insight appears.

Switch the report format from:

  • Table view
    to:
  • Time series view

Then change the reporting interval from:

  • Daily
    to:
  • Weekly

Weekly trends are usually much easier to interpret.


The Hidden Insights You Can Discover

Once visualised over time, competitor data becomes dramatically more useful.

One example from a removals business campaign in California revealed a fascinating trend.

A Dominant Competitor Was Controlling the Entire Auction

In the report:

  • Yelp had the highest impression share for months
  • Other advertisers remained relatively stable
  • Suddenly, Yelp stopped advertising aggressively in June

As soon as Yelp reduced activity:

  • Every other advertiser’s visibility increased
  • Impression shares rose across the board
  • Smaller businesses gained more exposure

No campaign settings had changed.

Budgets remained the same.

Bidding strategies remained the same.

The only thing that changed was Yelp stepping back from the auction.


What This Means for Your Campaigns

This type of analysis reveals something many advertisers never realise:

Large competitors can completely shape your market conditions.

Aggressive advertisers often:

  • Inflate click costs
  • Reduce available impression share
  • Increase competition intensity
  • Push smaller advertisers out of auctions

When these major players reduce activity, the entire auction environment changes.

Smaller advertisers suddenly gain:

  • More visibility
  • Lower competition
  • Better efficiency
  • More affordable clicks

This explains why campaign performance can fluctuate dramatically even when you haven’t changed anything inside your account.


Why This Matters for Small and Medium Businesses

For businesses with limited budgets, understanding competitor behaviour is critical.

If a dominant competitor is aggressively bidding in your market:

  • Your cost per click may rise
  • Lead costs may increase
  • Impression share may fall
  • Conversion volume may drop

Without analysing Auction Insights trends properly, you may incorrectly assume your campaign setup is the problem.

In reality, market competition may be the real cause.


How to Use These Insights Strategically

Once you identify competitor trends, you can make smarter decisions about your campaigns.

1. Adjust Expectations During Competitive Periods

If a major competitor becomes highly aggressive, understand that:

  • Costs may temporarily rise
  • Impression share may fall
  • Efficiency may decrease

This helps prevent overreacting with unnecessary campaign changes.


2. Increase Budgets When Competition Drops

If a dominant advertiser pulls back:

  • CPCs may become more affordable
  • Visibility opportunities increase
  • Lead volume may rise

This can be an ideal time to scale campaigns.


3. Identify Seasonal Competitor Behaviour

Some businesses increase advertising during:

  • Peak seasons
  • Promotions
  • Industry events
  • High-demand periods

Tracking Auction Insights trends over time helps predict these patterns.


4. Benchmark Your Market Position

Instead of obsessing over raw metrics, you gain a much clearer understanding of:

  • Who controls the auction
  • Who is scaling
  • Who is retreating
  • How competitive your market truly is

Why Visual Reporting Is Essential

The biggest takeaway is simple:

Trend analysis is far more valuable than static competitor tables.

The default Auction Insights report makes it difficult to identify meaningful patterns.

Visualising the data over time allows you to:

  • Spot major market shifts
  • Understand auction dynamics
  • Identify dominant advertisers
  • Predict campaign volatility

Without this context, you’re only seeing isolated snapshots rather than the full story.


Final Thoughts

The Google Ads Auction Insights report is one of the most underused competitive analysis tools available to advertisers.

Most people only use it to:

  • Check competitor names
  • Compare impression share
  • Look at rankings

But when combined with custom reporting and time-series analysis, it becomes a powerful way to understand the competitive landscape driving your campaign performance.

By analysing trends over time, you can uncover:

  • Which competitors dominate your market
  • When competition intensifies
  • Why performance changes occur
  • When opportunities emerge

And in an increasingly automated Google Ads environment, these kinds of strategic insights are becoming more valuable than ever.

If you want better results from Google Ads, don’t just look at the Auction Insights table — analyse the trends behind it.

About The Speaker

Darren Talyor

Editor

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