If you’ve worked in media sales for any time, the formula SOV = SOM = SOM is not new to you.
For those of you that have not seen this before, let me explain and then discuss why we should make sure every business owner understands it and why it is still relevant in today’s new media world.
Share of Voice (SOV) is the percentage of media spending by a company compared to the total media expenditure for the product, service, or category in the market. Share of Mind (SOM) is the level of Brand Identity or TOMA/Top of Mind Awareness that a business has amongst its competitors in the market. Share of Market (SOM) is the percentage of the total amount of business being done in a specific category within their market.
In simple terms, the greater the amount of SOV a specific business has the greater the amount of SOM, or TOMA, they have, and then ultimately the greater amount of SOM they have. Of course, there are underlying factors that can cause Share of Market to be swayed one way or another, but that is for another article.
Having this conversation with your clients and prospects is important for two main reasons:
Most business owners do not equate their share of the market like this. At best, they simply know “which competitors” have “what share” of the business within their market. They don’t necessarily know “how” they got it.
Getting them to understand that having a greater Share of Mind is the end goal to having a greater Share of Market.
In the twenty-four years ENS Media has been conducting TOMA research and surveys, this formula rarely ever fails. The business with the largest and best Share of Voice (SOV) has the greatest TOMA or Share of Mind (SOM) and therefore has the largest percentage of, and an equal and proportionate amount of, Share of Market (SOM).
If I ask you to name a fast-food restaurant, what name comes to the top of your mind?
If I ask you to name a brand of a canned soup, what brand comes to your mind? The top answers to these two questions, by far, are always McDonald’s and Campbell’s.
Who do you think does the majority of the business in the fast food and canned soup categories? You guessed it… McDonald’s and Campbell’s!
Now, name the first local Auto Body Repair Shop (or any other local business category) that comes to the top of your mind? Did the answer(s) that you came up with prove the formula right or wrong? I can assure you, once you complete the formula, it’s almost always right. If they have 8% Share of Mind, they’re probably doing close to 8% of the business in their category.
Do you have clients that want to increase their Share of Market? If so, they must first increase their Share of Mind. I’m hoping you can figure out the last step.
If you would like to find out how a TOMA Survey can help not only generate additional and new revenue for your stations but also train your sellers to use this and other proven practices, strategies, and formulas, give us a call or email me to arrange a time to chat.
Note: If your sales team is not strong at selling long-term strategy-based advertising, a TOMA seminar is not a good fit for you. If this is the case, call me, and let’s talk about training your sales team to be professional media reps.