Amanda Lapidot
LinkedIn, the premier professional networking platform, offers a treasure trove of insights for businesses seeking to thrive.
However, with countless companies vying for attention, it’s crucial to understand the competitive landscape and stand out from the crowd. By conducting a comprehensive competitive analysis, you can gain valuable insights into industry trends, benchmark your performance, and identify opportunities to optimize your LinkedIn strategy.
This blog post will guide you through the process of conducting a thorough competitive analysis on LinkedIn. We’ll delve into the importance of competitive analysis, explore practical steps for gathering and analyzing data, and discuss additional factors that can impact your success on the platform.
Part 1:
Why Conduct a Competitive Analysis on LinkedIn?
Are you even a marketer if your CEO hasn’t asked you why XX competitor has more followers than you?
All joking aside, for C-level executives, competitive analysis offers invaluable insights into the market landscape. By understanding industry trends and competitor strategies, marketers and executives can make informed decisions, optimize resource allocation, and identify emerging threats.
A comprehensive competitive analysis on LinkedIn provides businesses with a strategic advantage. By identifying industry trends, analyzing competitor strategies, and optimizing your own approach, companies can:
Part 2:
How to Conduct Competitive Analysis
1. Log in to your LinkedIn account.
2. Navigate to your company page.
3. Click on the “Analytics” tab.
4. Select the “Competitors” tab.
This will provide you with a list of your competitor’s pages and key metrics, including:
5. You can then choose the timeframe and export the data into an Excel spreadsheet for analysis. Note, anytime you change your analytics view, you will need to reset your chosen timeframe.
Key Elements of a Successful Competitive Analysis
Selecting Competitors
When selecting competitors (up to 9), consider factors such as company size, target audience, and industry relevance. It’s important to include both direct and indirect competitors to get a comprehensive view of the market.
Analyzing Competitor Content
Examine the types of content competitors are sharing, including blog posts, articles, videos, and infographics. Analyze their messaging, tone, and target audience. This will help you understand what resonates with their audience and identify potential areas for improvement in your own content strategy.
Part 3:
Interpreting and Analyzing Data
To fully extrapolate the data we will be working with two examples:
Key Metrics to Focus On
In this analysis, three main metrics—follower growth, engagement rates, and post frequency—serve as foundational indicators of social media performance across the two industries.
Follower Growth:
Figure 1: Both OUR CLIENT and Competitor 1 saw declines in follower growth, with OUR CLIENT’s drop being slightly less severe (-25.36% vs. -28.59%), possibly reflecting broader industry trends affecting follower increases.
Figure 2: OUR CLIENT achieved a positive follower growth rate of 21.44% compared to a significantly higher 72.30% by Competitor 1, suggesting the competitor is rapidly building an audience.
Engagement Rates:
Figure 1: Engagement rates fell across the board, but OUR CLIENT managed a smaller decline (-8.02%) than Competitor 1 (-10.44%).
Figure 2: OUR CLIENT saw a 24.67% increase in total engagement, while Competitor 1 achieved a remarkable 126.45% increase, indicating Competitor 1’s content is likely more engaging or relevant to its audience.
Post Frequency:
Figure 1: OUR CLIENT posted 212 times in H1 2024 versus Competitor 1’s 148, yet the competitor’s higher follower growth may indicate that engagement relies not only on quantity but on content resonance.
Figure 2: OUR CLIENT posted 119 times in H1 2024 compared to Competitor 1’s 170 posts, suggesting that higher post frequency could correlate with greater engagement.
Identifying Trends and Patterns
Look for upward or downward trends in follower growth and engagement rates. Analyze correlations between post frequency, content types, and engagement levels. By understanding these trends, you can identify successful strategies that you can adapt to your own company.
Remember, relying solely on your own analytics can provide a limited view. By comparing your performance to competitors, you can gain a broader understanding of industry trends and identify opportunities to improve.
For instance, if you notice a decline in engagement rates, it’s important to determine whether this is an industry-wide trend or specific to your company. This broader perspective can help you make informed decisions about your content strategy and marketing efforts.
Using the examples in this post and examining the data over two half-year periods shows key trends in social media performance:
Figure 1: Across competitors in this sector, a downward trend in both follower growth and engagement was prevalent. Competitor 1 saw a 28.5% decline in follower growth, while Competitor 3 also experienced a considerable decline of 27.1%. Despite these losses in follower numbers, engagement rates also declined, with Competitor 3 experiencing a significant drop of 28.1% in total engagements. These declines may reflect broader industry trends, such as market saturation or reduced consumer interest, impacting social engagement.
Figure 2: This industry observed fluctuating follower growth among competitors, with some companies experiencing increases and others declining. Notably, Competitor 1 saw a 72% growth in followers over H1 2024, while Competitor 2 had a negligible decline. A similar trend is observed with engagement, where Competitor 1 shows a significant 126% rise in engagements, suggesting their strategies, possibly higher-quality content or more resonant messaging, are paying off.
Drawing Meaningful Conclusions
Consider industry-specific factors that may be influencing competitor performance. For example, economic conditions, regulatory changes, or technological advancements can impact the competitive landscape.
By analyzing the data and considering these additional factors, you can draw meaningful conclusions about your company’s competitive position and identify areas for improvement.
Part 4:
Growth on LinkedIn: Other factors to consider
While content is undoubtedly king, other factors can significantly fuel your company’s growth on LinkedIn.
Let’s delve into these strategic elements:
Employee Advocacy: Empower your employees to become brand ambassadors. Encourage them to share company content, engage with industry discussions, and build their personal brands and networks. This not only amplifies your reach but also strengthens your company’s reputation and credibility.
Recruitment: LinkedIn is a prime platform for talent acquisition. When a candidate applies for a position through the platform they automatically become a follower. You can see a direct correlation between open positions, the number of applicants, and follower numbers.
Paid Advertising: Consider leveraging LinkedIn’s advertising platform to reach a wider audience and drive targeted engagement. Well-crafted ads can help you introduce your brand to new prospects, generate leads, and boost website traffic. A company investing in paid boosting or ads will likely have a much higher brand reach which equals more views and engagements.
By analyzing these factors, you can gain valuable insights into your competitors’ strategies. For instance, a company may have experienced rapid growth due to a strong employee advocacy program or effective recruitment efforts. By identifying these areas of success, you can tailor your own approach to gain a competitive edge.
Conclusion
There is a lot of noise on LinkedIn but a strong competitive analysis can be your compass to cut through it. By understanding industry trends, analyzing competitor strategies, and optimizing your own approach, you can navigate the platform with confidence and unlock its full potential.
Remember, competitive analysis is not a one-time event; it’s an ongoing process. Regularly revisit your findings, adapt your strategies, and stay ahead of the curve. By following the insights outlined in this blog, you’ll be well-equipped to navigate the competitive landscape of LinkedIn and achieve sustainable growth.
Ready to start your competitor analysis? Download our free template here.
We can help you conduct a thorough competitive analysis and develop a tailored plan to maximize your online presence.
