It is wrong to look at competition as something negative. In fact, if you can channelize your intentions and objectives correctly, your competitors can be your biggest motivators. By looking at the competition around you, you can quickly figure out where you stand in terms of brand presence, market value, strengths and weaknesses.
You conduct your business in a competitive arena, not in isolation. So, your competitors have a profound effect on the way you handle your business. If you shut your eyes to the competition and keep doing your own thing, irrespective of what the others around you are doing, you will soon find yourself isolated in a box.
Competitor analysis in digital marketing
Let us look at how you can identify your competitors correctly, which happens to be a crucial task. Otherwise, you will be pitting yourself against a weak or too strong an adversary.
For example, if you are a startup, your competitor isn’t the multi-national brand, even though they are the market leaders. You need to look at the competition that your company or brand faces from other companies and brands which are nearer to you in terms of market share, brand value and other factors, like financial backup. After all, a startup functioning on a shoe-string budget cannot be held up as a competitor with a brand that has very deep pockets.
Once you have identified competitors which stand more or less on an even keel with your company or brand in terms of brand presence and monetary value, it’s time to look at the technical aspects. In the field of digital marketing, there are two areas where you will be able to identify competitors correctly: on social media and on search engines. You can use various tools for competitor analysis such as ubersuggest, spyfu, semrush, seoptimer or Seven Boats Digital Marketing Tools
The number of followers and engagements that your competitors have on social media give away the identities of brands and companies that are in direct competition to you. Here too, you have to pick up competitors that are on a level field with you.
Being a digital marketing company with predominantly online presence, you cannot be a competitor with a brand that has a strong offline presence due to other factors. A strong brand offline usually translates into a commanding presence on social media networks.
Users who are familiar with the brand through other forms of advertising like TV or newspapers will surely seek out the brand on social media and engage with them. As a brand with little or zero access to these offline forms of advertising and media publicity, you don’t stand a chance and can’t beat yourself up over the fact that your social media presence is a lot weaker.
The same goes for search engines. Brands that have worked on SEO and PPC for years obviously hold a strong edge over your brand, especially if you have just entered the fray. These brands will not make space for you to get into the higher SERPs because they already have a successful SEO and PPC plan in place. Their optimization and online advertising is almost running on auto-pilot! These brands cannot be your competitors, either.
Identify and pick your competitors correctly so that you make appropriate strategies for your own brand. Or, you will be bitter and keep barking up the wrong tree.