What to do next
Show the working, step by step
Where I used this
My Galaxy Note9 launch work delivered 1.54 times year-on-year growth, No. 1 globally for launch growth.
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The idea behind ESOV
Brands whose share of category advertising (share of voice) is higher than their share of the market tend to grow; brands below it tend to shrink. The commonly quoted rule of thumb from IPA effectiveness research is about half a share point of growth a year for every 10 points of excess share of voice. It varies by category, by brand size and, above all, by how good the work is.
- Small brands can usually afford a higher ESOV relative to their size; market leaders often grow with less.
- Estimate competitor spend honestly. Use media monitoring data or a reasoned range, and test both ends.
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Questions
What is share of voice?
Your share of all advertising in your category, usually measured by spend or impressions. If the category spends 10 million and you spend 2 million, your share of voice is 20%.
What is excess share of voice (ESOV)?
Share of voice minus share of market. Positive ESOV is associated with market share growth; negative ESOV with decline.
How accurate is the 0.5 points per 10 ESOV rule?
It is an average from effectiveness studies, not a law. Use it to size ambition and budgets, then track your own results.