🎓 Definition
Share of voice measures the percentage of Promotion spending of a particular Category or Brand compared to the total Promotion expenditure for the Category or Brand in the market.
While Promotion Intensity and Share of Voice are related concepts, they are not interchangeable and should be evaluated separately.
In essence, Promotion Intensity is a measure of how much a Manufacturer is promoting its products or brand, while Share of Voice is a measure of how much a company is being talked about or noticed in relation to its competitors.
🧪 Example of Share of Voice
For example, let's say that Manufacturer A and Manufacturer B are the two main players in the Coffee Category. If Manufacturer A generated $50,000 in Promotion sales within the Coffee Category, while Manufacturer B generated only $10,000 in Promotion. $200,000 worth of promotion sales was generated across the entire market for the Coffee Category. Then Manufacturer A has a share of voice of 25% and Manufacturer B has a share of voice of 5%.
❓What Share of Voice is used for
Some of the utilization of measuring Share of Voice include:
- Visibility: Share of voice can provide insight into how visible a Manufacturer or Brand is within its industry or market. This can help Manufacturers understand how effectively they are communicating with their target audience and identify any potential gaps in their marketing efforts.
- Competitive analysis: By comparing a Manufacturer's Share of Voice to its competitors, they can get a sense of its relative presence and visibility within the market. This can be useful for identifying strengths and weaknesses and adjusting marketing strategies accordingly.
- Brand awareness: A high Share of Voice can lead to increased brand awareness, as it indicates that a Manufacturer or Brand is receiving a significant amount of attention within its industry or market. This can be beneficial for driving traffic and sales.
- Customer engagement: Share of Voice can be a useful metric for understanding how effectively a Manufacturer or brand is engaging with its target audience. By tracking changes in the Share of Voice over time, they can get a sense of how well their Targeted Offers are resonating with customers.
- Evaluate the success of marketing campaigns: If Manufacturers or Brands launched a Campaign recently, they can determine whether they made a higher return on investment from their increased Share of Voice. That also indicates their marketing message and tactics were effective.
🖥️ Make it happen in Ariane
How to access Promotion intensity in Ariane: 2 Simple Steps
Step 1: Select the Promotion Evolution Menu in the Promotion Menu Bar
Step 2: Select Option in the Filter Menu and choose the period and hierarchy level you want to measure.
And here it is.
