The relationship between Share of Voice and Market Share

For an observant marketer, it is critical to understand what metrics he/she wants to look at to measure the success of a campaign and the success of a brand.

Monitoring new metrics makes sense due to the rise in e-commerce and social media. Some examples are vanity metrics
(likes, shares, comments) and engagement metrics (page views, users, sessions) that are towards measuring consumption.

One of the essential metrics considered significant for decades is ‘Share of Voice.’ It is the advertising share of a brand as compared to the total advertising of the market to which it belongs. For a brand, in modern times, it is crucial to measure both traditional and digital share of voice. A study done by Millward Brown found that brands that increase their ‘Digital Share of Voice’ will have a better chance to increase their market share in the long run.  

 

The excess share of voice (ESOV) is the driver of market growth however certain factors that play a vital role are:

  1. Size of brand
  2. Position of the brand (leader, challenger, disruptor)
  3. Promotional activities

Marketers should also compare competitors’ Share of Voice’ against theirs at different stages of the buyer’s journey. It will
help to adjust, improve, and optimize/personalize communications and promotional activities and increase conversions.

To improve market share some of the steps are-

1.    Perform competitive analysis– It is imperative to know if the ocean blue or red, meaning how competitive the market is.

2.    Gap analysis– This analysis will help us understand in terms of sales/market share where we want to reach as the time proceeds and will help us by tweaking strategies or increasing advertising budget to reach the goal.

                                     
Image courtesy: https://www.marketing91.com/gap-analysis/

The perfect strategy for increasing market share may be different for different brands. It requires keen insight into the target segment and critical thinking to develop the best-suited approach to reach the goal.

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