How to Perform a Competitive Analysis in Digital Marketing

29 September 2025

Let’s face it — digital marketing is no walk in the park. With the internet being a crowded place where countless brands are competing for the same audience, staying ahead of the game can feel like trying to run a race on a treadmill. That’s why understanding your competitors and figuring out what they’re doing right (and where they’re stumbling) is absolutely essential. Enter: competitive analysis.

In this guide, I’ll walk you through everything you need to know about performing a competitive analysis in digital marketing. Grab a cup of coffee, settle in, and let’s dive into the nitty-gritty, shall we?

What Is Competitive Analysis in Digital Marketing?

Competitive analysis is like peeking over your neighbor's fence — except it’s totally legal... and even encouraged! It’s the process of studying your competitors to understand their strengths, weaknesses, strategies, and tactics in the digital marketing space.

Why is this important? Because it gives you a goldmine of insights. You can learn what’s working for them, avoid their mistakes, and uncover gaps in the market you can exploit. It’s like having a cheat code in a video game.

Done well, a competitive analysis can help you fine-tune your strategies, improve your campaigns, and ultimately gain that oh-so-sweet edge over your competitors.

Step-by-Step Guide to Performing Competitive Analysis

Let’s get practical here. Below, I’ve broken down the process into bite-sized steps so you can hit the ground running:

1. Define Your Competitors

First things first, you need to define exactly who you’re competing against. There are three main types of competitors to focus on:

- Direct Competitors: These are businesses offering the same products or services as you, targeting the same audience. Think Pepsi vs. Coke or Nike vs. Adidas.
- Indirect Competitors: These are businesses that satisfy the same customer need, but with a different product or service. For example, a high-end fitness facility could view at-home workout apps as an indirect competitor.
- Aspirational Competitors: These are the big dogs in your industry. They might not directly compete with you, but they’re who you aspire to emulate.

Make a list of 5–10 competitors to analyze. Tools like Google search (duh!), SEMrush, or SimilarWeb can help you identify your competitors if you’re not sure.

2. Analyze Their Website and User Experience (UX)

Start with their digital storefront — their website. Think of it as their online home base.

- Design and Navigation: Is their website sleek and easy to navigate, or does it look like it’s stuck in the early 2000s?
- Call-to-Actions (CTAs): What CTAs are they using? Are they eye-catching? Would you be tempted to click on them?
- Mobile Friendliness: Does their site look good on mobile, or does it make you want to throw your phone?
- Load Time: Nobody likes a slow website. Test their site speed using tools like Google PageSpeed Insights.

A polished, user-friendly website can do wonders for conversion rates. If their website is outperforming yours, it’s time to take notes and up your game.

3. Dive Into Their SEO Strategy

If content is king, SEO is like the all-powerful wizard behind the throne. A strong SEO strategy can make or break a brand’s digital presence.

Here’s what to dig into:

- Target Keywords: Use tools like Ahrefs or SEMrush to analyze what keywords your competitors are ranking for. Are they focusing on short-tail keywords, long-tail ones, or a mix?
- Backlinks: Check their backlink profile. Where are they getting links from? Are there any high-authority sites in the mix?
- On-Page SEO: Review their meta titles, descriptions, and headings. Are they optimized? Look at their use of keywords. How does their content structure compare to yours?
- Content Performance: Which blog posts or articles are driving the most traffic for them? Tools like BuzzSumo can help you identify their top-performing content.

Pro Tip: If there’s a keyword they’ve missed that aligns with your audience, pounce on it like a cat on a laser pointer.

4. Evaluate Their Content Strategy

Content is the bread and butter of digital marketing. If your competitors are pumping out engaging, relevant content consistently, they’re probably stealing the spotlight.

What to look for:

- Types of Content: Are they blogging, vlogging, podcasting, or creating infographics?
- Content Quality: Is the content valuable, well-written, and easy to read? Or is it a snooze-fest?
- Publishing Frequency: How often are they updating their blog or social media?
- Engagement Rates: How many shares, comments, and likes are their posts getting?

Quality always trumps quantity, but let’s not kid ourselves — consistency matters too. If they’re publishing regularly while you’re going months without uploading a blog post, you’re falling behind.

5. Audit Their Social Media Presence

Social media is where brands show their personality. It’s also where you can gather some of the juiciest insights about your competitors.

Here’s what you should pay attention to:

- Platforms They Use: Are they on Instagram, TikTok, LinkedIn, or all of the above?
- Content Style: Is their tone playful and fun, or more formal and professional?
- Engagement: Check the likes, shares, and comments on their posts. High engagement often indicates an engaged, loyal audience.
- Ad Campaigns: Use Facebook Ad Library or similar tools to see the types of ads they’re running.

Pro Tip: If you notice certain types of posts getting higher engagement, consider incorporating similar strategies into your own social media plan.

6. Monitor Their Paid Advertising Strategy

Next up: ads. This is where a lot of competitors pour their budgets, and it’s an area you can’t afford to overlook.

Here’s how to analyze their paid efforts:

- Ad Formats: Are they running search ads, display ads, video ads, or a combination?
- Audience Targeting: Based on their messaging and platforms, who are they targeting? Families? Small business owners? Fitness enthusiasts?
- Budget: While you can’t see exact numbers, a tool like SpyFu can give you an estimate of how much your competitors are spending on ads.
- Creative Elements: Review their ad copy, visuals, and call-to-actions. What stands out?

Watching their ad game is like being a fly on the wall in their boardroom. Pick up on patterns and replicate (or improve upon) their successful tactics.

7. Understand Their Pricing and Offers

Now, this step might not be directly related to marketing, but it’s still critical. Why? Because pricing and offers heavily influence consumer decisions.

- Product or Service Pricing: Are they pricing higher or lower than you?
- Special Deals: Do they offer discounts, bundles, or freebies?
- Value Proposition: How are they positioning their product? Are they emphasizing quality, affordability, or innovation?

This step could reveal why your audience might be leaning toward competitors — even if your marketing game is solid.

8. Use Competitive Analysis Tools

Let’s not reinvent the wheel, shall we? Leverage tools to make your analysis easier and more accurate. Here are some fan favorites:

- SEMrush: Great for SEO, traffic analysis, and PPC insights.
- Ahrefs: Another powerhouse for SEO and content analysis.
- BuzzSumo: Content trends and social media insights at your fingertips.
- SimilarWeb: Website traffic analysis made simple.
- Google Alerts: Set up alerts for your competitors’ brand names to stay updated on their activities.

Wrapping It Up

Performing a competitive analysis in digital marketing isn’t just about spying on your rivals — it’s about learning from them. Think of it as a treasure hunt where the “X” marks an opportunity to improve your strategies.

Remember, the goal here isn’t to copy-paste what your competitors are doing. Instead, take what’s working for them, add your unique twist, and make it even better. And don’t forget to continuously monitor the landscape — competitive analysis isn’t a one-and-done deal.

So, roll up your sleeves, start digging, and watch your digital marketing efforts soar to new heights.