Why is Competitive Market Analysis Important?

Where does your website rank when compared to your competitors?

Competitive analysis plays a vital role in shaping the advertising strategies of several brands. Your website’s ranking in the market reveals your shortcomings and strengths. Competitor analysis can be defined as a statement of business strategy and how it is related to the competition.

The main purpose of a competitive analysis is to find the strengths and weaknesses of your competitors within your industry, strategies that will offer a distinct benefit, barriers that can be created for preventing the competition from getting inside the market, and any weaknesses that can be oppressed within the products or services development cycle.

It is by far one of the most significant processes to your website’s success in search engines. But what is competitive analysis and what are the things you should research? Significantly, competitive analysis is the procedure in which you are asked to learn about your competitor’s online marketing efforts, ranging from SEO to pay-per-click advertising. It is important to find out how good or bad your competitors are performing so that you can understand what are the things that your website is lacking.

Nowadays, all organizations and brands must operate in a fast-paced and competitive environment. Brands are always in search of opportunities to hang on and attain competitive benefits in the industry.

On the contrary, some of the companies believe that it is better to move on with their own plans and totally ignore the competition, while some of them are so obsessed with keeping an eye on their competitors that they don’t mind using illegal methods to get the info.

Companies that have strong knowledge about what activities their competitors are doing helps them to take better and informed decisions for their digital marketing strategy.

Importance of competitor analysis:

One of the main reasons why an analysis of competitors is required is to realize the strengths and weaknesses of your competition. Brands should follow competitor analysis method as this process helps you find effective strategies that you can use for improving the efficiency of your company. Knowing your position in the market gives an early warning to take the immediate steps for streamlining your external and internal communication.

Effective competitive research shows the objective of your competitors, therefore assisting you in learning the best practices from diversified parts. You can learn many things from the success and failure of other companies. By doing this analysis, you can find the reason why some digital marketing campaigns fail, therefore assisting you to predict the important assets and skills required for beating your competitors.

While analyzing your competitors, identify the challenges and threats your competitors bring in the eco-system. It also helps you to build up your company’s strategy against your opposition. Today, brands are competing in various areas where they have been absent historically. Thus, the perception that clients hold about your company plays a vital role in explaining the competitive benchmark.

How to analyze your competitors?

Here is a list of some popular methods for doing a competitor analysis. These methods will keep you updated about the weaknesses and strengths of your competitors:

A) Finding the keywords that you must target- Before you find out who your top competitors are, you must decide what are the things you are competing with your competitors, i.e. what are the keywords that you are focusing to rank for. Preparing a list of target keywords demands using different techniques:

1. Using the keyword research tools like Google Keyword Planner
2. Discovering the keyword synonyms by making use of Google’s related search queries
3. Brainstorming sessions and research like going through forums and blogs covering the topic your website deals with

B) Rank tracking for finding your top competitors- A significant thing to understand while doing competitor research is that the brands that you consider as your competitors in the advertising field often are not the same competitors that you come across online. You may come across companies that spend huge amounts of money on newspaper, TV, and billboard advertising, thus leaving a big footprint in the offline sector.

However, the online world is altogether a different picture. Those same brands most often understand the significance or have technical savviness to have a well-optimized and successful web presence.

For instance, let us assume that we are doing search engine optimization for a British airline that offers service to more than 30 countries all over the world. When someone discusses with the SEO consultant, they come up with a list of these companies:

a) Wizzair
b) British Airways
c) KLM
d) Ryan Air
These are the names of big and popular airlines that have powerful brand recognition. If you look for the term, “Easyjet” on Google and search in the knowledge panel you will see a feature called, “People also search for” and you will come across the names of those companies that are listed there. The reason behind this is because many people search for those airlines.

After doing proper keyword research, a competitive analysis report consisting of nearly 50 keywords related to different travel locations and special deals were selected and added to the rank tracking software for the domain, Easyjet.com, and their competitors’ sites.

C) Compare the engagement level- You must analyze the content that is shared by you and your competitors and try to find out the weaknesses and opportunities available for growth. Find out where your competitor outperforms you and focus more on that specific area to provide your competitors with a hard time.

D) Measure the response time with your competitor’s website- With so many social networks these days, customers expect a quick answer for their queries. Compare your standards with the best brands in the market and define objectives for yourself as the basic standard. Analyzing your responsiveness when compared to your competitive position would help you to rank your company for engaging with the clients.

E) Recognize your brand reach- Calculate your individual social media platform presence and the combined reach of your social media presence. Make use of this data to calculate the reach of your competitors and the strategies that they are following, and if you think those to be useful, include those methods in your marketing plan. By doing this, you will observe an improvement in search engine rankings.

F) Calculate your share- It is significant to know how many individuals are engaging with you. It is also vital to understand about your share in the market. Check your competition and find out if there is still a scope of improvement in your digital media strategies to make them more effective.

G) Content’s quality- Every industry focuses on a certain type of content or we can say that each of them has their own set of keywords to focus. The important thing here is to ensure that you follow your content and know what is best for your marketing strategy and content mix.

Analyzing your competitor- A Worthwhile Investment

Just like the best armies in the world spend a huge amount of their budgets on intelligence as having that info is truly a game changer, so too SEO experts must invest resources and time in competitive intelligence for monitoring their competitors and to learn their strategies. Though there are large numbers of factors that affect Google’s ranking of the web pages, checking several high-ranking competitors will provide you powerful vision into how you can optimize your web pages successfully.

While starting, the time and investment required to do this kind of analysis is not irrelevant, but the truth is as you attain insights through your research, you will attain an understanding of general principles of what successful content and UX looks like and will not require to invest as much time on this feature of competitor analysis.

Competitor analysis, if done in the right way, has an excellent return on investment, and now is the right time to get started. But before you get started have a complete understanding of the process and its benefits.

The best way to do so is by joining a digital marketing training center. You will come across large numbers of training institutes in Bangalore that provides training on online marketing. One of them is Streamlyn Academy.

It offers the best digital marketing course in Bangalore. Along with digital marketing, the skilled trainers at the institute teaches basics of Programmatic Advertising, SEO, SEM, social media marketing, web hosting, blogging, different kinds of advertisement metrics, data analytics, data tracking, retargeting, how to run a campaign, and much more.

Join us and build your career in Digital Marketing.

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