Chapter 46
Share of Voice

Measurement Need

To measure the organization’s share of the total media expenditures in the market.

Solutioni

Share of voice is calculated by:

Vs=A∑At

Where

Vs = your share of voice expressed in percentage terms

A = your advertising spend for a given product

ΣAt = total of all market advertising spend for the same type of product

Suppose $100 million is spent on ads for portable music players overall, and a specific company spends $5 million to promote its own player. The company’s share of voice would be 5%:

Vs=$5,000,000$100,000,000     =5%

Measuring online share of voice has led to new tools specific to the digital world, including:ii

–Search Engine Optimization (SEO) is a way of measuring the organic (unpaid) visibility ranking of the website when using a search engine.

–Pay Per Click (PPC) is a fee paid by advertisers whenever their ad is clicked.

–Click Through Rate (CTR) describes the ratio of users that click on links relative to the total number of users that visit a page.

–Impression shareiii is the percentage of searches for keywords shown on the advertiser’s ads versus total searches. It is measured as:

Is=IIe×100

Where

Is = impression share

I = impressions

Ie = total eligible impressions

Impact

Marketers hope to grow the business by investing in programs, including marketing communications that inspire customers to buy. Advertising is a specific activity within marketing communications that can have a significant influence on perception. In this regard, a high share of voice can lead to increased awareness, which, ultimately, can lead to increased sales and market share. Marketers need to be cognizant of the target audience, the time of day ads are run, and the type of publication in which they are run. Finally, the type of media, mass versus niche, attracts different audiences as well. While a high share of voice may indicate a larger amount of money devoted to advertising versus competitors, marketers need to carefully consider the relevance of the message to the actual consumers targeted. A one-time high share of voice may not indicate a meaningful or impactful share of voice.

Advertising totals will be captured in the marketing plan and marketing budget. Typical company finance and accounting reports measure advertising costs as a component of total marketing expenditures. Reviewing industry trade publications, third-party research reports, business magazines with special industry sections, and local business journals will provide broader data and guidance. Relevant statistics may also be gleaned from press releases or sales literature from businesses that have already bought industry reports and are using the information in their publicity.

iP. Kotler, M. L. Siew, H. A. Swee, and C. T. Tan, Marketing Management: An Asian Perspective (Upper Saddle River, NJ: Prentice Hall, 2003), 650; C. Doyle, Collins Internet-Linked Dictionary of Marketing (HarperCollins, 2003, 2005) 287.

iiKit Smith, How to Measure Share of Voice: PPC, SEO, Social Media, June 15, 2106, Brandwatch. Retrieved June 11, 2017 from https://www.brandwatch.com/blog/how-to-measure-share-of-voice/

iiiAdwords Help, Google. Retrieved May 1, 2017 from https://support.google.com/adwords/an-swer/2497703?hl=en

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