A Strategic Guide for Small Business Marketing
Your competitors – do you know who they are and what they’re doing to capture their target audience? Local SEO and small business marketing have transformed how we connect with nearby customers. But first, you need to know exactly who you’re up against in your market.
I’ve helped many small businesses map out their competitive landscape, and I’ll tell you this: Your real competitors aren’t always who you think they are. That new shop across the street might look like your biggest rival, but the business three towns over could be stealing your customers through superior local search rankings.
This guide cuts through the complexity of competitive analysis. You’ll learn concrete steps to identify both your direct and digital competitors, understand their strengths, and spot opportunities they’re missing. No fluff – just actionable insights backed by current market research and proven local SEO strategies.
Start With Your Direct Local Competitors
Your competitive analysis starts in your immediate area. Here’s how to build your initial list:
- Map Your Service Area Define your primary service radius – typically 10-15 miles for most local businesses. According to a BrightLocal study, 72% of consumers won’t travel more than 5 miles for everyday purchases.
- Use Google Maps Effectively Search your primary business category within your service area. Pay attention to:
- Businesses with the most reviews
- Those appearing in the Local Pack (top 3 map results)
- Companies with similar service offerings
- Check Business Directories Review local business listings on:
- Yelp
- Better Business Bureau
- Industry-specific directories
- Chamber of Commerce listings
Identify Digital Competitors
Your online competitors might differ from your physical ones. Here’s how to find them:
- Analyze Local Search Results
- Use incognito mode to search your main service keywords plus location
- Note which businesses appear on page one
- Track businesses appearing in Google’s Local Pack
- Monitor competitor positions over time
- Study Google Business Profile Rankings Top-ranking GBP listings often indicate strong local competitors. Look for:
- Number and quality of reviews
- Completeness of business information
- Frequency of posts and updates
- Response to customer reviews
Evaluate Competitor Strength
Once you’ve identified your competitors, assess their market position:
- Online Presence Analysis
- Website quality and mobile optimization
- Social media engagement
- Content quality and frequency
- Backlink profiles using tools like Ahrefs or Moz
- Review Management
- Total review count across platforms
- Average rating
- Review response rate and quality
- Review frequency and recency
- Service Offering Comparison
- Core services and specialties
- Pricing structure
- Unique value propositions
- Service area coverage
Track Local Search Performance
Monitor your competitors’ local SEO efforts:
- Keywords and Rankings
- Track local keyword rankings
- Monitor featured snippet ownership
- Analyze People Also Ask appearances
- Study long-tail keyword coverage
- Content Strategy
- Blog post frequency
- Local content relevance
- Service page optimization
- Location-specific landing pages
Tools for Competitive Analysis
Leverage these tools for deeper insights:
- SEO Tools
- SEMrush for keyword analysis
- BrightLocal for local citation tracking
- Ahrefs for backlink analysis
- Google Trends for local search trends
- Social Monitoring
- Social Blade for growth tracking
- Hootsuite for engagement monitoring
- Facebook Insights for local engagement
Action Steps for Your Business
- Create a Competitor Tracking System
- Set up a spreadsheet to monitor key metrics
- Schedule monthly competitor reviews
- Track changes in local rankings
- Identify Market Gaps
- Look for underserved areas
- Note service offerings competitors miss
- Spot weak points in competitor strategies
- Develop Response Strategies
- Create content addressing market gaps
- Build out service pages for underserved needs
- Optimize for neglected keywords
Looking Forward
Local competition continues to evolve. According to BIA Advisory Services, local advertising spending is projected to reach $161.6 billion in 2025, with digital capturing 47% of that spend. Your competitors are likely increasing their digital marketing budgets – making it crucial to stay ahead of their strategies.
Remember that competitive analysis isn’t a one-time task. Set up regular monitoring systems and adjust your strategy as the local market changes. Focus on building your unique strengths while staying aware of competitor movements.
Need help developing your local SEO strategy? Our team specializes in small business marketing. Contact us for a free consultation about your local market position.