How to Do Local Competitor Analysis: Guide for Local SEO Agencies

Local businesses and SEO agencies know one thing for sure: competition is fierce. 

Understanding how to outperform your rivals starts with competitive analysis. It’s not just about keeping tabs on your competitors; it’s about learning their strengths, weaknesses, and opportunities.

Whether you're targeting coffee shops or plumbing services, this guide will help you dissect what works (and what doesn’t) for competitors and your brand. 

From insightful tips and the use of tools like SEMrush to simple Google searches, you’ll also learn how to analyze local SEO competition like a pro. 

What Is Local Competitor Analysis?

Local competitor analysis is the process of identifying competitors within your industry and researching their marketing strategies (to find out why they work or do not work). The goal is to borrow an idea from them, refine their strategies, and identify opportunities to differentiate your own business within your local market. 

Local competitor analysis is somewhat like looking into your neighbor’s backyard BBQ to figure out why everyone loves their burgers more than yours. It involves identifying, evaluating, and dissecting what makes your competitors tick. The butcher store they source steaks from, their recipes, and all. Then, use that intel to fine-tune your strategy and take your place in the spotlight.

If you’re a local SEO agency managing a multi-location brand with stores across Houston, you might notice one store thriving while another struggles to draw foot traffic. Why? It could be due to competition nearby with outstanding Google reviews, faster delivery times, or a lightning-fast website. A local competitor analysis provides these valuable insights, helping you identify the gaps and opportunities to improve.

It’s not just about eyeballing their website. You’ll dig into their service or product offers, Google Business Profile (GBP), keywords they rank for, and even their ad strategies. For example, if your competitor has glowing reviews while your client’s profile is crickets, that’s a major clue.

And don’t overlook their content. If they’re ranking online because they’ve cracked the code on “best tacos in Dallas” blog posts, it’s time to whip out your keyword research tool and analyze your local SEO competition. What long-tail keywords are they targeting? How frequently are they publishing? All these puzzle pieces come together to create a clearer picture of their local SEO strategy.

When Should You Do Competition Analysis?

Local competitor analysis is a must-do anytime you want to stay ahead in the game. Here’s when it works best:

When Entering a New Market

Let's say you or your client want to open a new café in Denver. Congratulations are in order! But to stand out, you’ll need more than good coffee. 

Without analyzing the competition, your client might end up pricing lattes at $8 in a neighborhood where $5 is the norm. By studying competitors, you’ll get insights like popular price points, customer preferences, and trending keywords. 

Are they ranking high for "best latte in Denver"? Are they already listed online on GMB, Yelp and TripAdvisor but your Google business profile still remains on your to-do list? How many five-star reviews do they have? What keywords are they targeting? Getting your client to rank in a new city means knowing exactly what competitors are doing—and doing it better.

Launching a New Product or Service

Say your client, a plumbing company, is introducing emergency pipe repair services. It’s not enough to just offer it. You need to see who else is in the “emergency repair” space. For instance, most keyword analysis tools let you know the competition density for each keyword analyzed before diving head-on. 

By analyzing local SEO competition, you might find that their rivals dominate the "24-hour plumbing repair" keyword. Armed with this intelligence, you can recommend tweaks to their SEO strategy, like optimizing content for "same-day plumbing repair near me." 

Pro tip: Targeting "near me" keywords works wonders—76% of mobile users visit a business within a day after a local search, according to the Search Engine Journal. 

Facing Declining Market Share

Nothing feels worse than seeing a client lose customers. If market share is slipping, it’s time to go deep. Maybe their competitor is running a killer ad campaign and sucking local customers. Or perhaps they’ve nailed their Google Business Profile updates with fresh photos and reviews, and they pop up as no.1 on local search. 

A good local SEO competitor analysis helps pinpoint gaps. For instance, you might notice competitors excelling in local link building while your client’s backlinks are nonexistent. That’s your opportunity to turn the ship around by building a stronger local SEO foundation.

Developing Marketing Campaigns

Planning a seasonal campaign? Don’t wing it. For example, if your client is a multi-location gym chain gearing up for “New Year, New You” promotions, analyzing competitors helps you create a smarter campaign.

Check what promotions rivals are running and how they target their audience. Are they focusing on family plans, free trials, or fitness challenges? This data doesn’t just inspire your marketing. It ensures you avoid offering the same deal, making your client stand out.

Pricing Strategy Adjustments

Pricing isn’t just about being cheap. It’s about being competitive. Let's say your client sells handmade furniture. Competitors may charge slightly more but offer free delivery or customization. Customers love value, not just low prices.

By analyzing the local SEO competition, you can understand what’s working for competitors. Maybe it’s time for your client to adjust their pricing or add other perks like sustainable materials. 

Part of Your Multi-Location Brand is Struggling 

Competitor analysis isn’t just for underdogs. Multi-location brands, too, benefit by identifying regional trends. Multi-location brands face unique challenges. One branch might be thriving while another flounders. Let’s say a burger chain’s Miami location gets rave reviews, but the Chicago store is struggling. A local competitor analysis helps uncover answers.

In Miami, competitors might focus on family-friendly dining and happy hour deals. In Chicago, maybe the competition dominates delivery apps and late-night searches. Once you know what competitors are doing right (or wrong), you can implement strategies tailored to each location’s market.

Benefits of Competitive Analysis for Local SEO

When it comes to local SEO competitor analysis, the payoff is huge. Knowing what your competitors are up to can help you stay ahead in the race for local visibility. Whether you're managing a single location or a sprawling multi-location brand, here’s how competitive analysis can transform your strategy:

Identify Top Local Competitors

First things first: who’s stealing your customers? You might think you know who your competitors are. But sometimes, it’s not the big-name brands. It’s the tiny taco truck with 500 glowing Google reviews or the boutique salon with killer Instagram reels. 

Local competitor analysis pinpoints these rivals. For instance, a florist in Denver might realize their toughest competitor isn’t the nationwide chain but a small shop acing “same-day flower delivery in Denver” searches on the Google SERP. 

According to Investopedia, 45% of new businesses fail within the first five years. One of the key reasons is their inability to research their market. Don’t be like them—know who’s winning and why.

Uncover Local Keyword Strategies

Ever wonder why your competitor’s website shows up every time someone searches for “best coffee in Seattle”? They’ve nailed their local keyword strategies. 

A look into competitor content, meta tags, and ads reveals the keywords driving their traffic. You can use tools like SEMrush to analyze what’s working for them. A pizza chain could find out its rival is ranking with “late-night pizza in Chicago.” Guess what? Adding that to your client’s SEO playbook could bring in the night owls.

Benchmark Your Local SEO Performance

How do you know if you’re winning without a scoreboard? Benchmarking is your answer. Compare your Google rankings, reviews, and backlinks against the competition. Let’s say a multi-location gym in Atlanta has 200 reviews, but their competitor has 1,000. That’s a clear gap. 

The best way forward is to take average reviews on the profiles of your top competitors. See the gap in your reviews vs theirs. This will give you an idea of how much you need to improve.

You can do the same for other metrics like backlinks, number of website pages, etc.

Fun fact: Local businesses with more reviews have higher local search rankings on Google, according to Google's help document. By analyzing these metrics, you can set measurable goals to catch up—or surpass—the competition.

Discover Effective Local Link-Building Tactics

Link building isn’t just for global brands. Local backlinks are essential for locally based businesses. Competitive analysis uncovers where your rivals are getting their backlinks. Is it from local bloggers, sponsorships, or directory listings? For instance, a car dealership might find that its competitor sponsors community events, earning links from local news outlets. 

Optimize Local Content and Listings

Ever noticed how some businesses dominate Google Maps? It’s through precise strategy. A competitor analysis can show you how they optimize content and listings. 

For instance, a multi-location dentist in Dallas might find their competitor is killing it with services like “emergency root canals near me.” You can mirror this by fine-tuning service descriptions, business hours, and review responses.

Creating targeted content like blogs about “best coffee spots in Brooklyn” or ensuring your client’s listings are error-free makes a huge difference. Misspelled names or wrong hours could cost your client big time.

Gain a Competitive Advantage

Knowing your competition is like having their playbook. It’s not cheating—it’s smart business. Let’s say a boutique hotel chain finds their local rival offers free breakfast, leading in reviews and ranking for “best family hotels in Nashville.” 

With that insight, you can position your client with unique perks like pet-friendly options or personalized concierge services.

Improve Resource Allocation

No one likes wasting time or money. Local competitor analysis ensures your client’s resources are laser-focused. For example, if a restaurant sees its rival succeeding with Instagram ads but flopping on TikTok, it knows where to invest.

Consider another scenario: A retail chain in Miami realizes its top competitor generates traffic through local partnerships with schools. Instead of pouring cash into generic promotions, your client can collaborate with local sports teams or sponsor events. It’s not copycatting. It's all about making smarter, refined decisions with data-backed insights.

Stay Informed About Local Trends

Trends change fast.

Keeping an eye on competitors shows what’s hot in your client’s market. For instance, a bakery in Portland might notice competitors adding gluten-free options and vegan pastries. That’s your cue to jump on board.

A coffee chain could discover oat milk dominates sales in Seattle, while almond milk is king in Los Angeles. Tailoring strategies to these insights keeps your client on-trend.

Knowing your competition isn’t just for the sake of curiosity. It’s a direct line to improving your client’s local SEO strategy. From understanding keywords to building links, analyzing competitors gives you the playbook to win the local SEO game.

(Also Read: 5 White Label Local SEO Services to Offer Your Clients Today)

How to Conduct a Local Competitor Analysis

Knowing your competition is step one in winning the local SEO game. Here's a step-by-step guide to conducting a local competitor analysis. 

Identify Local Competitors

Start by figuring out which businesses are fighting for the same customer base. It’s not always obvious. Sure, your client knows the big players, but smaller or newer businesses could be quietly grabbing market share.

Here’s how to identify your local competitors:

• Google Search: Use location-specific keywords like “best bakery near me” or “top real estate agents in San Diego.” The businesses that pop up are your direct competition. If your client isn’t in the mix, you’ve got work to do.
• Local Directories: Industry-specific directories are treasure grounds for competitor research. Examples:some text
  • Restaurants: Yelp, Zomato, OpenTable
  • Home Services: Angi, Thumbtack, HomeAdvisor
  • Real Estate: Zillow, Redfin, Realtor.com
  • Financial Services: NerdWallet, LendingTree
  • Healthcare: Healthgrades, Zocdoc, Vitals

Pro tip: Don’t just look at listings. See how these competitors present themselves—what keywords they’re using, what services they highlight, and how customers review them.

• Social Media Monitoring: Platforms like Instagram and X (formerly Twitter) are hotspots for local buzz. Check hashtags like #BestCoffeeSeattle or #ChicagoPlumbers to discover businesses people discuss.
• Review Platforms: Google Reviews and TripAdvisor may also be used for competitor insights. Look at what customers love. Check Review > Lowest ratings to know what they complain about. Both reveal opportunities for your clients to shine.

Analyze Their Google Business Profiles

Next stop: Google Business Profiles (GBP), formerly known as Google My Business (GMB). It's where the magic of local SEO often starts. 

This is a free local business listing hosted on Google search. It's considered the storefront of the digital world since Google processes over 22 billion search queries a day. What’s more, 88% of people making daily searches end up visiting a related store within a week. 

Did you also know that businesses with optimized GBPs are 2.7 times more likely to be considered reputable? Yep, that's true—Google said so. To analyze your competitors on GBP, here’s what you should do:

How to Do an In-Depth GBP Analysis

1.Check GBP Ranking in Local Packs: 

Google-search the main services in your area, using a keyword structure like "best [service] near me." Take note of who shows up in the local pack (top 3 listings). These are your main competitors.

2. Check Their Categories and Attributes: 

Your competitors' categories are clues to their strategy. For example, a bakery might use "artisan bread" instead of just "bakery." Look at their attributes too—like "family-friendly," "pet-friendly," or "free parking." These details can make or break a customer’s decision.

3. Review Count and Average Rating: 

Reviews are crucial. They tell you what customers love (or hate). The number of reviews and average ratings also affect their ranking. It's no wonder businesses with over 4 stars and 100+ reviews often dominate the local pack. If a pizza joint has 500 great reviews and your shop has 30, it’s time to up your game. Tools like GMBEverywhere can show you review stats across competitors.

4. Visual Content: 

High-quality photos and videos on GBPs improve engagement by 42% and clicks by 35%. If your competitors have drool-worthy food shots or walkthrough videos of their store, it’s time to match or beat that.

5. Check Product Descriptions: 

Look at how detailed the service/product descriptions are. For example, do they highlight specialties like "same-day dry cleaning" or "24/7 customer support"? If yes, make sure your profile does the same. Are they hitting emotional triggers like "locally sourced" or "voted best in town"? A good description can lure customers even before they step inside.

6. Engagement Metrics: 

Metrics like clicks on the website, calls, and direction requests give you an idea of what works. Use tools to track engagement data if you want to go deep.

Audit Local Citations

All online references to your company's name, address, and phone number (NAP) on different websites, directories, and social media platforms are known as local citations. 

They're like breadcrumbs leading customers to your business. A messy trail means lost customers. Consistent citations (business name, address, and phone number—or NAP) improve your local SEO rankings. If your details are inconsistent, you’re handing customers to your competitors.

Here's a simple game plan to audit your local citations and competitors: 

• Check Your Own Citations: First, Search your business name on platforms like Google Maps, Yelp, and Yellow Pages. Are your NAP details the same everywhere? Even a small typo—like “Avenue” vs. “Ave.”—can confuse search engines and customers. Using a listing management tool like Synup helps fix this across your listings. 
• Spy on Competitor Citations: Use tools like BrightLocal or Moz Local to see where competitors are listed. Notice if they’re on directories you’ve missed? If they’re on “Best in Town” lists or niche sites? That’s a clue where you should be, too.
• Correct Inconsistencies: If you find mismatched details (e.g., an old phone number or outdated address), fix them. Google rewards businesses with consistent info across the web by ranking them higher.

(Also Read: Understanding the Importance of Local Listings)

Once your citations are clean, it’s time to go on the offense:

• Find Citation Gaps: Compare your citations with competitors. For instance, if a rival salon is on “Top Beauty Spots,” and you’re not, reach out to get listed.
• Leverage Niche Directories: If you’re a multi-location brand, list your business in local directories tailored to each location. For example, a car repair chain could target “Top Auto Shops in Houston” and “Best Mechanics in Chicago.”
• Enhance Existing Listings: Most directories allow additional details like photos, business hours, and special offers. Use these to make your listings pop. A picture of your team with “Family-Owned Since 1985” can make all the difference.

Review Backlink Profiles

Backlinks are akin to votes of confidence for your website. In local SEO competitor analysis, studying your rivals’ backlink profiles reveals who’s vouching for them and why. It's likely that your rivals have worked out the backlink code if they are showing up higher on the search engine results page.

1.Start With High-Quality Link Sources: 

Look for authoritative sites linking to your competitors – local news outlets, chamber of commerce pages, or industry directories. These are the sources you want linking back to you too. If a local competitor’s website is linked by a popular city blog featuring “Top 10 Restaurants in [Your City].” This isn’t just good PR—it improves your competitor’s SEO. Reach out to that same blog with your story, event, or unique offering. Or make your own research and reach out for guest posts or citations.

2. Analyze Link Types: 

Noticed they’re heavy on guest posts? Or maybe they’ve nailed partnerships for sponsorship links. Understanding link types lets you see what strategies work in your niche. Let's say your competitor is a gym with backlinks from fitness equipment brands. This shows they’re making partnerships. If you’re in the same industry, could you team up with local wellness bloggers, yoga retreats, or fitness equipment brands?

3. Monitor Link Velocity: 

Link velocity measures how quickly your competitors are gaining (or losing) links. A sudden spike shows they’ve likely launched a PR campaign or event. A consistent drip may mean they’re probably focusing on long-term strategies like content marketing. Avoid replicating unnatural spikes—Google’s not a fan of suspicious growth. Instead, aim for a steady, organic pace.

4. Spot Broken Link Opportunities:

Using tools like Ahrefs or SEMrush, find backlinks pointing to their 404 pages. These are opportunities for you to swoop in and suggest your content as a replacement. Let's say a competitor bakery has a broken guest post link for “Best Cupcakes in Town.” Create a stellar blog post on that topic and pitch it to the guest post site owner as a fix.

Monitor Competitor Rankings

To get ahead, start by tracking your rivals’ rankings. Use tools like SEMrush, Synup, or Moz to see how they perform for local SEO keywords. For example, local keywords like “best coffee shop near me” or “casino venue near me tonight” are driving massive traffic. Google reports these searches have surged by over 900% in just two years.

Wondering why their GBP ranks higher? Analyze trends. Do their rankings spike during seasonal events? That could hint at successful campaigns.

For hyper-local analysis, tools like Synup’s Grid Ranker can map their performance in specific neighborhoods. This is key for businesses targeting multi-location customers.

Pricing Comparison

Your competitors’ pricing can reveal opportunities. Check their websites, reviews, or—if you’re bold—visit their stores. Tools like Priceva Competitor Price Monitoring  make this even easier with automated tracking.

Look for pricing gaps. If competitors are too rigid, come in with something flexible or unique. Loyalty discounts or bundle deals can give you an edge. For instance, your gym offering a free smoothie with a monthly membership can quickly become the talk of the town.

If your client owns a daycare chain and discovers its competitors only offer full-day packages, you can introduce hourly pricing to cater to parents with flexible schedules.

Most customers compare prices online before buying locally. Don’t leave money on the table.

Marketing Strategy Analysis

Curious about your competitor’s marketing magic? Analyze their ad campaigns on platforms like Google Ads or Facebook. Tools like SpyFu or SEMrush PPC Toolkit can come in handy for this. 

Watch their social media engagement. Are their Instagram posts buzzing while yours are fizzling? Note their posting frequency, content style, and ad types.

Also, look out for local partnerships. Multi-location brands often collaborate with influencers, sponsor events, or support charities. If it works for them, tweak and replicate it.

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Summing Up

Local competitor analysis is a cheat code to outsmart the competition. By identifying them, auditing their online citations, and studying their backlinks, Google Business Profiles, reviews, and content strategies, you get actionable insights to improve your rankings and foot traffic. Remember, local competitor analysis isn’t just about copying—it’s about improving. You'll become THAT business by learning from their successes (and failures).

Learn from their wins—like partnerships or how they got their 5 star review. Spot out their misses too from the negative reviews, outdated service areas or broken links and jump when an opportunity shows up.

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How to Do Local Competitor Analysis – Guide for Local SEO Agencies: FAQs

What is a local competitor?

A local competitor is a business in your area offering similar products or services, and targeting the same audience/customers you are. They show up in Google’s local pack, dominate local search results, or share overlapping customer bases. For example, if you run a pizza place, the spot two blocks down with raving Yelp reviews is your competitor. 

How do you find local competitors?

Search your target keywords and location, like "coffee shop in Seattle." Look at the top-ranked businesses in Google’s local pack. For multi-location brands, check industry directories like Yelp or TripAdvisor. Don’t forget to monitor social media mentions in your area. Competitors often pop up where customers talk. 

What is a local guide in SEO?

A local guide is a local community member who contributes reviews, photos, and edits on Google Maps. Their input improves local businesses’ visibility and credibility. Thanks to their active status, reviews by local guides often appear higher in search rankings.

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In local SEO, encouraging guides to engage with your business can enhance your online presence. 

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