Why competitive analysis is important for your digital marketing plan

​It is very important to know the ins and outs of your competitors not only to outperform them, but also to grow your business effectively. Understanding your competitors will help you better understand your customers and your target market.
 
A competitive analysis should be an integral part of your marketing strategy as it helps you understand the competitors’ strategy to leverage your strengths and minimize your weaknesses.

What is a competitive analysis in digital marketing?

In digital marketing, competitive analysis is a process which identifies your competitors’ strengths and weaknesses. It also gathers information about the strategies used by your competitors for business activities such as marketing, pricing, product development, audience engagement, and so on.
 
Why should you do a competitive analysis?
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The scope of your competitive analysis varies depending on what you want to discover. The analysis can be as broad or narrow as required.
 
For example, you want to understand and optimize your ads to increase conversions. For which you would look at the ads posted by the competitors, understand the tone used in the ads, the persuasion route used in the ad, the reactions (or lack of reactions) on the ads, as well as try to gather additional conversion insights.
 
Benefits to conducting a competitor analysis include

• Identifying barriers and opportunities in a market
• Identifying your value proposition and how it differs from competitors
• Highlight where competitors are not delivering or have weaknesses
• Identifying new customers
• And a lot more!

 
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