Achieve Share of Market Goals
Setting an advertising budget to achieve a targeted share of advertising voice is one of the most critical decisions a brand has to make. The right share of voice protects and grows market share, while the wrong share of voice can cause the hold brands have on their market share to slip (Institute of Practitioners in Advertising (IPA) and Nielsen Analytic Partners 2009). As social media conversations supplement—and may even supplant—advertising, a new question emerges: Does a similar relationship exist between conversational share of voice and share of market? Can marketers and advertisers achieve a targeted market share by achieving a targeted share of conversational voice? The ability to answer that question can guide the ways in which companies budget, plan, and evaluate their media and marketing programs.
If this chapter were an episode of MythBusters, the answer to the “myth” of market share and social media conversation would be “probable.” The evidence we have so far is suggestive, but not yet conclusive. However, it's certainly intriguing enough to discuss, and inspiring enough to warrant a deeper look.
Studies from full-service listening companies TNS Cymfony (2009), Keller Fay Group (Moore 2010), and Nielsen (Swedowsky 2009), all performed separately, show that the basic relationship between conversational share of voice and share of market appears to hold across ready-to-eat cereals, automobile brands, and warehouse clubs, respectively. ...