LPS Logo

How to Do a Competitive Analysis in Digital Marketing

2025-08-13

Blog

Analysis in digital marketing is an indispensable strategic process that enables businesses to assess their competitive landscape, identify gaps in performance, and adjust strategies to lead in their industry.
When done thoroughly, this process helps you understand where you stand among the best digital marketing services, whether you’re offering affordable digital marketing services or positioning yourself as a provider of top digital marketing services.
In the following sections, we’ll walk you through practical steps, frameworks, and tools to execute a robust competitive analysis.

Understanding Why Competitive Analysis Matters

At its core, analysis in digital marketing means scrutinizing your competitors’ strengths, weaknesses, positioning, and performance so you can strategically differentiate your own offerings.
According to HubSpot, competitive analysis helps you compare key differentiators like marketing tactics, branding, and sales strategies, guiding you to lead rather than follow in your industry.
Similarly, Semrush emphasizes that competitor analysis enables businesses to spot gaps and opportunities in fast-changing digital landscapes by leveraging available data.

Step-by-Step Process to Conduct a Competitive Analysis

1. Identify Your Competitors
Begin by identifying both direct and indirect competitors, those offering similar products or services to similar audiences, as well as those operating adjacent to your market. Digital Marketing Institute recommends using models like the 7Ps of marketing to understand how competitors position themselves. Reddit users also recommend utilizing tools like Google search, industry forums, social media, and direct feedback from customers to uncover your competitive set.
2. Map Out Their Strategies and Positioning
With your competitors identified, delve into their digital assets, websites, social media, ads, content, and messaging architecture. Sprout Social suggests evaluating factors like content types, publishing frequency, quality, CTAs, and social engagement to benchmark and improve your own strategy.
3. Analyze Market and Strategic Context
Use well-established frameworks to deepen your analysis:
4. Gather Real Data and Customer Insight
Competitive intelligence involves ethically sourcing information about competitors’ strategies, customer demographics, and market dynamics, from publicly available sources to market reports and social listening tools. This process helps you anticipate threats and stay proactive.
5. Analyze & Visualize Findings
Once collected, synthesize data into visual dashboards, comparison matrices, or SWOT templates. Tools like Asana offer structured guides and templates for organizing this analysis and translating insights into actionable next steps.

  • SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) helps assess internal and external factors.
  • Porter’s Five Forces offers perspective on competitive rivalry, supply chain dynamics, and market entry barriers.
  • Perceptual Mapping helps visualize your brand’s place relative to competitors based on customer perceptions.

Applying Analysis to Improve Your Services

When you offer top digital marketing services, knowing how your competitors approach SEO, PPC, content marketing, and social media helps you identify whether you can offer a more focused or more affordable alternative, say, by positioning your agency as a provider of affordable digital marketing services or champion for small business digital marketing services.
Use marketing channels, pricing models, and messaging benchmarks from your analysis to craft an edge that aligns with customer expectations and market gaps.

Frameworks to Guide Your Analysis

  • Situation Analysis / 5C Framework helps assess internal capabilities, customer needs, competitor behavior, collaborators, and the context.
  • SWOT Analysis clarifies where your brand stands relative to your competitors in terms of strengths, weaknesses, market opportunities, and risks.
  • Porter’s Five Forces helps you understand broader industry forces, like the bargaining power of suppliers and threat of new entrants.

Best Practices for Agencies Offering Digital Marketing Services

Agencies offering digital marketing service near me or tailored solutions like small business digital marketing services should approach competitive analysis with both breadth and depth.
Use locally relevant SEO keywords, review competitors’ localized ad copy, assess social media tone, and benchmark pricing packages. By doing so, you position your agency as responsive and relevant to local markets while maintaining strategic clarity.

Frequently Asked Questions

1. How to do digital marketing competitor analysis?

Identify direct and indirect competitors, analyze their marketing content and digital presence, evaluate using frameworks like SWOT or Porter’s Five Forces, gather customer insights, and visualize the findings for strategic decisions.

2. What are the 5 steps of a competitive analysis?

Identify competitors, gather data (on content strategy and positioning), apply analytical frameworks, synthesize insights visually, and translate into action.

3. How to do a competitive analysis in marketing?

Use tools and steps above, start with competitor mapping, then research, evaluate strategic positioning and messaging, and form your own competitive advantage from the findings.

4. What are the 4 P’s of competitive analysis?

Common interpretation of the 4Ps in competitor analysis includes Product, Price, Place, and Promotion, examining what competitors offer, at what cost, through which channels, and using which messaging tactics.

5. How do agencies approach competitive analysis in digital marketing?

Agencies typically use structured frameworks, perform in-depth audits of competitors’ digital channels, leverage tools (e.g., Semrush, Sprout Social), synthesize insights via dashboards, and adjust strategy accordingly.

Conclusion

Conducting a comprehensive analysis in digital marketing is not just an academic exercise, it’s the foundation of strategic growth. By understanding how your competitors operate and where opportunities lie, you can refine your positioning, enhance your services, whether you offer top-tier or affordable digital marketing services and deliver real value to clients. With the frameworks and steps outlined above, you’re equipped to create a competitive advantage that lasts.
Shaikh zubaer Aasim

Shaikh Zubaer Aasim

With over two decades of driving marketing transformation across the GCC, Aasim brings a rare blend of brand leadership, digital innovation, and business foresight. He has demonstrated a unique ability to align with evolving customer and market demands whilst predicting and leading best practice in digital and customer experiences.

His journey spans across building multi-million-dirham portfolios, launching modern marketing campaigns, building AI enablled Tech platforms and leading award-winning teams across both client and agency environments. His appointment to the MMA Board of Director reinforces a larger belief: Modern marketing demands more than strategy it demands ideas that are unafraid to build what’s next.

His appointment to the MMA Board of Director reinforces a larger belief:

Modern marketing demands more than strategy it demands ideas that are unafraid to build what’s next.