How can you tell how well you are doing relative to the competition? Are you gaining more share or is your competition taking away your share?
It's a challenge to see how a specific competitor is doing, but you can get an idea of how you're doing against the herd through a combination of Average Position (in text ads) and impression share. If you're meeting your ROAS target by some margin, and your Impression Share shows that there's more market to be had (say, less than 80% on exact match IS), then you should probably bid higher. If you're bidding as much as you can afford, and your Impression Share is still low, then your competitors are out spending you. Is that such a bad thing? Unless they're buying much better than you are, and therefore have much better margins, it might be better to bide your time, and let them bleed out a while. You're not going to teach a bad competitor a lesson by doing the same dumb thing they're doing, but even more.
Have questions? Drop me a line via the Contact form--I love to talk shop.
Up and to the right!