How to Identify Your True Marketing Competitors and build the groundwork for an effective Strategy
Before you invest in a digital marketing strategy, there’s one crucial step many businesses overlook: knowing who your real competitors are.
Whether you’re operating locally, nationally or internationally, understanding both your direct and indirect competitors is essential. Why? Because the more accurate your competitive landscape, the more effective and cost-efficient your digital marketing strategy will be.
In this post, we’ll guide you through how to identify your most direct and indirect competitors, what tools you can use and how this research saves you time, money and effort when working with a digital agency.
Why Correctly Identifying Your Direct and Indirect Competitors Is Critical Before Starting a Digital Marketing Strategy
Contacting a digital agency without a confirmed shortlist of your direct and indirect competitors is a lot like throwing money into the wind. The digital marketing process begins with the assumption that you know your business better than anyone else and that includes knowing who else is targeting your desired customers and how.
If you start off without a competitor shortlist, the result can be an ineffective and expensive marketing campaign that unintentionally benefits your actual competitors. Time and effort may end up focused on businesses that, while technically competitors, aren’t ones you see as real challengers to your market share.
The good news is that with a little groundwork upfront, you can dramatically improve the quality and accuracy of your digital strategy. This ensures your efforts are aligned, your budget is well spent and your competitors are playing catch-up, not you.
Direct vs Indirect Competitors: What’s the Difference?
You don’t need to identify every business in your space, just the ones that matter to you. Focus on competitors who are actively targeting your customers and doing it well. They are often the names you hear from the mouths of your customers or just see around your serviceable area.
Direct competitors: Offer the same services or products to the same audience. These are the businesses your potential customers are comparing you to. For example, another well-established plumbing business in your area would be a direct competitor.
Indirect competitors: Solve the same problem in a different way. A retail bathroom and kitchen supplier offering basic plumbing installation and repair may not match your full-service offering but could still attract some of your customers.
Aim to identify competitors who are not just similar but successful. This gives your marketing team a clear picture of who you’re up against and helps uncover opportunities to stand out.
How to Identify Your Competitors (Step-by-Step Guide)
Before starting your digital marketing strategy, use this clear process to identify how your direct and indirect competitors operate. These steps include practical tools that are accessible and effective for Australian businesses.
1. Search Businesses in Your Market
Begin with Google Search in ‘incognito mode’ to find businesses that appear for the keywords your customers are likely using, such as “plumber near me”, “plumber in victoria park” or “sink repairs in victoria park”. Use Google Maps and Business Profiles to see who is familiar to you and who has a strong local presence. For broader discovery, directories like Yellow Pages Australia and True Local are still useful, particularly in regional areas.
On social media, search platforms like Facebook, Instagram and TikTok using hashtags and location filters help to find brands with an active audience. If you are a business-to-business provider (B2B), check LinkedIn and browse local industry directories or Chamber of Commerce listings to uncover competitors.
LinkedIn company pages are helpful for reviewing how businesses present themselves. Tools like SEEK and Glassdoor can give you a sense of their scale and activity based on recent job listings.
2. Review Their Digital Presence
Start by reviewing each competitor’s website. Do they function better or worse than yours? Do they have more or less information or products and services available? Use free browser extension tools like BuiltWith or Wappalyzer to see what platforms or technologies they use on their website.
If you are more tech-savvy than most, you can check SEO performance; try Ubersuggest for a quick overview of keyword rankings. For more advanced insights, use SEMrush or Ahrefs to identify keyword gaps and backlink profiles.
When it comes to digital advertising, several free libraries give you commercial transparency and real-time views of active campaigns. Use the Google Ads Transparency Centre to check for ads on Google Search, YouTube and Display. The Meta Ads Library covers Facebook and Instagram. TikTok’s Creative Centre, Pinterest’s Ads Library and LinkedIn’s ad previews via company pages are also valuable.
For social presence, look at how often they post and how their audience responds. Use the UpDog free browser extension to check your competitors’ average likes, reach, and views live. Check their comments section to see how their customers feel about them and whether it is negative or positive. don’t worry, usually the most relevant comments are displayed first so you don’t have to scroll very far.
3. Compare Their Position to Yours
Now compare their digital activity with your own. Are they showing up where you are not? Are they ranking for terms you have missed? Is their messaging more compelling or their offer clearer?
Look for gaps in their approach that you could fill. Also note where you may need to improve to compete more effectively. This comparison helps shape your strategy and gives your chosen digital agency partner a strong foundation to work from. You don’t have to come up with all the answers and creative ideas; a marketing team can do that for you, but laying out the groundwork definitely helps.
Common Mistakes to Avoid When Identifying Competitors
Avoiding a few common missteps will ensure your competitor list is accurate and useful.
One in particular is, don’t list aspirational brands or global giants that are far outside your actual market. Focus on realistic competitors targeting the same customers in the same locations. Second, avoid mistaking collaborators and suppliers for competitors. Some businesses in your space may be better suited as referral partners rather than direct rivals. Lastly, don’t overlook indirect competition. Many businesses lose market share not to a better version of their offering but to an alternative solution altogether.
By staying grounded and specific, your competitor analysis will be more actionable and more aligned with your marketing goals.
Final Thoughts: Do your Due Diligence Now to Save Time and Money Later
A well-informed business makes better marketing decisions. By identifying your direct and indirect competitors early, you empower your digital marketing team to deliver a focused strategy that avoids misaligned audits or off-target campaigns.
Take the time to research your landscape. Use the tools available. Begin your marketing journey with clarity and purpose.
And if you’re ready to take the next step with a partner who understands where you stand, we’re here to help. As experts in transforming your company vision into transformative results, we can help expand on your research and generate a high-performing campaign that will convert in your market. Contact us today for a free strategy consult.
