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"Keyword Cannibalization" refers to a situation where advertisers compete multiple ads or ad groups against the same or similar keywords. This can lead to the dispersion of the effectiveness of the ads and the potential for wasted costs.
1. Decrease in Advertising EffectivenessWhen multiple advertisements compete for the same keyword, the effectiveness of each advertisement may decrease. This can negatively affect the click-through rate and conversion rate of the advertisements, leading to a decrease in the overall performance of the campaign.2. Increase in CostKeyword Cannibalization can intensify competition by bidding on the same keyword, potentially leading to an increase in the cost per click. As a result, advertisers may end up paying more to acquire the same traffic.3. Decrease in ROIThe decrease in effectiveness and increase in cost can potentially lead to a decrease in Return on Investment (ROI). Due to Keyword Cannibalization, the advertising budget may not be used efficiently, potentially leading to a decrease in profitability.4. Difficulty in Data AnalysisWhen multiple advertisements compete for the same keyword, it becomes difficult to determine which advertisement is the most effective. This can complicate data analysis and make it difficult to formulate the optimal advertising strategy.