Competitor analysis is when a company looks at what other companies similar to them are doing. Check out what products or services they offer, how much they charge, and how they market themselves. This helps the company understand its competition better and decide to stay competitive in the market. Here’s how Paid Advertising Agencies conduct competitor analysis to help their client succeed.
First, Why is Competitor Analysis Important?
Competitor analysis is a fundamental practice for staying relevant, competitive, and innovative in any industry.
Competitor analysis is important for several reasons:
Anticipate Competitors Move
When you know what strategies your competitors are using, you can guess what they might do next. This lets you get ready and make plans to deal with whatever they throw your way.
Example:
If a competitor often lowers prices during holidays, you can prepare by making your product or service stand out in a different way through better features or advertising.
Discover Markets Gap
By looking closely at what your competitors are doing, you might find spots in the market that nobody’s paying attention to yet. These are places where customers’ needs aren’t fully met. Spotting these gaps can help you become a leader in new areas.
Example:
If everyone’s focusing on younger customers, like millennials, maybe there aren’t enough options for older customers, like baby boomers. If you notice this, you could create products or services just for them.
Develop New Strategies
Seeing what others are doing can inspire you to try new things and stand out from the crowd. This might mean using new technology, exploring new markets, or doing business in a different way.
Example:
If all your competitors are also advertising in newspapers, maybe you could try using social media or teaming up with popular online personalities to reach different types of customers.
Retain and Grow your Customer’s Base
In a competitive market, you can’t assume your customers will stick around. By paying attention to what your competition is up to and adjusting your plans, you can make sure you’re always giving your customers what they want. This helps you keep the customers you already have and bring in new ones.
Example:
If other businesses are offering rewards programs, you might want to think about improving your customer service or making your rewards program even better to keep your customers happy.
How Do I Identify My Competitors?
Identifying your competitors is really important. It helps you know what’s happening in the market and how to compete effectively.
This guide will teach you some straightforward methods to find out who your competitors are, so you can make informed decisions and succeed in your industry.
Use Google
Start by searching for your product or service on Google. Type in what you sell or offer, like “handmade candles” or “math tutoring online.” Look at the first few pages of results to see which businesses show up. These are your main competitors because they are trying to attract the same people you are.
Check Social Media
Go on social media sites like Facebook, Instagram, or Twitter. Use the search bar to look for keywords related to your business. You’ll find pages, posts, and hashtags about what you do. The accounts behind these could be your competitors, especially if they have a lot of followers or engagement.
Ask Your Customers
Sometimes, the best way to find out about your competitors is to ask your customers directly. You can do this through surveys, feedback forms, or casual conversations. Ask them what other products or services they considered before choosing yours. This can give you valuable insights into who your competitors are.
Attend Events
If there are trade shows, fairs, or networking events related to your industry, attending them can be a great way to learn about your competitors. You’ll see their products or services in action and can even talk to them to learn more about their business.
Look at Advertisements
Pay attention to advertisements on TV, in magazines, on billboards, or online that are related to your business. Companies that are advertising products or services like yours are likely your competitors.
By following these steps, you’ll get a good idea of who your competitors are. Knowing this helps you understand what you’re up against and can inspire you to improve your own business.
What Should I Analyse in my Competitors?
When you’re trying to figure out what makes your competitors good at what they do, think about looking into these things, like you’re on a treasure hunt:
Products and Services
Look at the types of products or services they offer. How are they similar or different from yours? What makes their products special?
Pricing Strategy
Check how much they charge for their products or services. Are they more expensive or cheaper than yours? This can help you think about your own prices.
Advertisement Strategy
Pay attention to how they tell people about their products. Do they use social media, TV commercials, or posters? What kind of words and pictures do they use to make their stuff look appealing?
Online Presence
Visit their website and social media pages. Are they easy to use and fun to look at? Do lots of people follow them or leave comments?
Customer Reviews
Look for reviews or comments from people who have bought their products or used their services.
Are the customers happy? What do they like or dislike?
Their Offerings
Find out if they have any special services like free delivery, big sales, or a hotline for customer help. These things can make customers choose them over others.
What Are Some Tools for Competitor Analysis?
Here are some of the tools that offer valuable information and insights you can use in your paid advertising competitor analysis.
Google Search
The easiest tool! Just type what you’re looking for into Google, and you’ll see which businesses pop up. This helps you see who else is doing something similar to what you’re doing.
Google Alerts
This is like having a spy who tells you every time your competitor is mentioned online. You set it up with the names of your competitors, and Google sends you an email when they’re talked about on the web.
Social Media
Platforms like Instagram, Facebook, and Twitter are great for seeing what your competitors post, how they talk to their customers, and what kind of things people like about them.
SEMrush
This is a bit more advanced. It shows you what keywords your competitors are using to show up in search engines, how much traffic their website gets, and lots of other useful info.
BuzzSumo
Imagine having a gadget that tells you which articles or posts are super popular. BuzzSumo does that. You can see which content from your competitors is getting a lot of attention, which helps you understand what people like.
SimilarWeb
This tool will give you information about your competitors’ website traffic, where their visitors come from, and how they spend their time online.
Remember, these tools can help you learn a lot about your competitors, but always use the information to make your own business better in a fair and positive way!
How Often Should I Conduct Competitor Analysis?
In paid advertising, competitor analysis is not a one-time task but an ongoing process. Market dynamics can shift rapidly, necessitating regular reviews to stay ahead. Quarterly reviews are a good practice, though some industries might require more frequent analysis.
Think of conducting competitor analysis like checking the weather before you go outside. You don’t do it once and forget about it; you check it regularly to know what to wear.
For your business, it’s a good idea to check on your competitors often to make smart choices.
Start of a New Season
Just like you might check the weather forecast more carefully when a new season starts, it’s good to do a detailed competitor analysis when your business is entering a new phase or season. This could be when you’re launching a new product or during the holiday shopping season.
Every Few Months
Every three to six months, take a look at what your competitors are doing. This helps you keep up with any new things they’re trying or if they’ve changed something important like their prices or the kind of products they sell.
When You Notice Changes
If you see something new, like a competitor starts advertising a lot or opens a new store, it’s like noticing dark clouds gathering – a sign you need to check things out right away.
Why Do It Regularly?
Regularly conducting competitor analysis for paid advertising ensures that you stay updated on industry trends, identify new opportunities, and refine your strategies for better performance and results.
To Stay Updated
Things change fast, especially in business. Keeping an eye on your competitors regularly helps you stay on top of these changes.
Make Better Decisions
Knowing what others are doing can help you make smarter choices for your own business, like if you need to change your prices or try new marketing ideas.
Find New Opportunities
Sometimes, by looking at what others are doing, you might find new ideas or opportunities for your own business that you hadn’t thought of before.
So, just like you wouldn’t wear shorts in a snowstorm, regularly checking on your competitors helps you make sure your business is always dressed right for the weather!
Why Do We Need to Check Competitor Current Ads?
Checking a competitor’s current ads is important for a few reasons.
First, it helps you see what they are telling people to get them interested in what they’re selling.
This can give you ideas on how to make your own ads better than them.
Here’s what to check:
Ad Platforms
Finding out where your competitors are putting their ads. Are they on Google, Facebook, Instagram, or somewhere else online?
Ad Content
Taking a close look at what their ads say and show. This includes the main messages, pictures, or videos they’re using to grab people’s attention.
Target Audience
Figuring out who your competitors are trying to reach with their ads.
Are they going after certain groups of people based on things like age, gender, interests, or where they live?
Keywords and Phrases
Checking out the specific words and phrases your competitors are using in their ads, especially in search ads. This helps them show up when people search for stuff online.
Conclusion
Competitor analysis in paid advertising is a dynamic and integral part of strategic planning.
By systematically identifying your competitors, analysing their strategies, and evaluating their strengths and weaknesses, you can uncover valuable insights to inform your business strategies.
Regular competitor analysis ensures your business remains competitive and can adapt to the ever-changing market landscape.
Here’s to making your business stand out among the competition with effective competitor analysis!
Check out this blog on the 6 Advantages of Working with a Digital Marketing Agency to discover how partnering with us can give you the competitive edge you need to achieve your business goals.