Share of voice (SOV)

What is SOV?

Share of voice (SOV) is a marketing indicator that compares a brand's advertising and marketing spending to that of its rivals in a given market as a proportion of total spending. It's a tool for figuring out where a product is in the market and how successful its advertising has been.

How to Calculate Share of Voice?

SOV is the ratio of the amount of advertising or marketing activity for your brand to the entire amount of advertising or marketing activity in a certain market or sector. The equation for determining a vote's distribution is:

Share of voice formula:

• SOV= (Brand Advertising/Total Advertising) x 100%

For example, if a brand has spent $10,000 on advertising in a market where the total advertising spend is $100,000, the SOV would be:

• SOV = ($10,000 / $100,000) x 100% = 10%

What You Can Measure With SOV?

• Advertising effectiveness - How successful a company's advertising campaigns are relative to those of rivals may be gauged by tracking the SOV of the brand in question.

• Brand awareness- SOV is a useful metric for gauging a company's reputation in a certain market or sector.

• Market share- With this particular metric you can determine a brand's market share in comparison to its rivals.

• Campaign performance- Marketers may evaluate the success of their efforts by monitoring the SOV over time and making modifications when appropriate.

Pros of Measuring Share of Voice

Sharing of Voice metrics may help in many ways.

• Market Analysis- You may learn a lot about your rivals' marketing approaches and tactics by analyzing their SOV data.

• Benchmarking-  You can establish and monitor progress against benchmarks. Companies may do both of these things by measuring the SOV over time and comparing the results to those of their rivals.

• Smarter marketing choices may be made when companies have a firm grasp of their SOV and how it stacks up against that of their rivals.

• Enhanced ROI- By tracking the results of their marketing and advertising campaigns, companies may better allocate their resources, therefore increasing their return on investment.

Market share vs share of voice 

Share of Voice (SOV) and Share of Market (SOM) are both marketing metrics that measure a brand's or product's performance in its market. They're representing diverse facets of a brand's market position, despite their similarities at first glance.

SOV quantifies the relative prominence of a certain brand or product concerning its rivals in a market. It quantifies how much of the market's total conversation or media attention a brand receives. The proportion of SOV relative to the total number of impressions, clicks, or other metrics available is a common way to measure it.

The market share of a product or service is the proportion of total market sales that the product or service accounts for. SOM quantifies a product's or brand's percentage of the market in terms of sales rather than awareness. It is determined by dividing the sales revenue of a brand or product by the total sales revenue in the market.

• Both SOV and SOM are useful in gauging a brand's popularity, but they each reveal unique information

Both SOV and SOM are useful for gauging a brand's overall market presence, but SOM is more directly related to a company's proportion of consumer spending. Brands may learn more about their success in the market and refine their marketing and operational strategies by keeping tabs on both measures.

Share of Voice Advertising and Share of Voice Marketing

Both advertising and marketing may benefit from increasing their SOV. In the context of advertising, SOV is the proportion of total market spending that can be ascribed to a single brand. In the context of marketing, SOV may indicate the proportion of a market's total promotional efforts that are allocated to a certain brand across several channels (such as social media, PR, and content marketing).

Conclusion

Share of Voice is a vital marketing measure that can be used to evaluate the success of a brand's marketing and its standing in the market. Organizations may improve the efficiency and effectiveness of their marketing efforts by measuring SOV and monitoring its evolution over time.