Share of voice

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Share of Voice in advertising is a measurement model within advertising. Share of voice measures the percentage of media spending by a company compared to the total media expenditure for the product, service, or category in the market. For example, if an electronics brand were to invest $5,000,000 advertising their latest e-reader, but $100,000,000 worth of advertising was spent advertising e-readers across the entire market for this shared category, then the 5 million dollar investment would equal a 5% share of voice.

Contents

Share of Voice can be calculated by taking your advertising spend and dividing it by the total of all market advertising spend for the same type of product or category. [1]

Share of Voice is used to "represent the relative portion of ad inventory available to a single advertiser within a defined market over a specified time period." [2]

Theory

The goal of advertising is to make your target audience aware of your brand, product, or service and influence them to act. Therefore, having a high share of voice can lead to increased awareness, and ultimately, increased sales and market share.

From the perspective of publishers and those selling ad space, Share of Voice capitalizes on the concept of exclusivity. By limiting the number of ad space available on websites, email newsletters, and other media, ads are more likely to be seen by their target audiences. When you limit a website, for example, to 10 advertisers in each ad position with each paying equally, on average each advertiser will be seen at least once every 10 rotations.

Share of Voice is designed to create a mutually beneficial relationship between the advertiser and the web publisher. The advertiser is willing to pay a premium for exclusivity and less competition for their target audience's viewership. The publisher no longer has to rely on volume and can attract advertisers that want to specifically reach the publisher's audience.

Because the Share of Voice method values quality of ads over quantity of ads, publishers are perceived to have higher levels of credibility and interaction. When high quality content is presented, high quality advertisers tend to follow.

Benefits versus pay-for-performance models

The share of voice advertising model is contrary to pay per click, cost per impression and/or pay to play (see brokered programming), which are pay-for-performance models that generate revenue for the publisher (typically, the website owner) only if the advertisement is clicked or viewed. The publisher is incentivized to seek out as many advertisers as possible, often on a bid-based system. Furthermore, Share of Voice bypasses the ethical dilemmas that come with PPC and CPI models, which are subject to abuse by click fraud, or Pay to Play tactics (advertorials, product placement, news coverage in exchange for ad purchases, etc) that are not always transparently paid ads.

When content is compromised for ad dollars, the level of reputation and respect for the publisher can dwindle as readers become disenfranchised and advertisers see less return on their initial investment.

Share of Voice models

Share of Voice models can be contract models where ad placement and content are pre-negotiated. This way, advertisers have the option to have longer advertising campaigns where content does not need to change based on the availability of advertising space. Additionally, the publisher's non-ad content, i.e. in the case of a news publisher, is independent of the advertiser's marketing campaign, regardless of other sponsors or advertisers that work with the web publisher.

Share of Voice can also be employed to maximize a brand or group of brands' exposure via advertising weight expressed as a percentage of a defined total market or market segment in a given time period. The weight is usually defined in terms of expenditure, ratings, pages, poster sites etc.

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Digital display advertising is graphic advertising on Internet websites, apps or social media through banners or other advertising formats made of text, images, flash, video, and audio. The main purpose of display advertising is to deliver general advertisements and brand messages to site visitors. A display ad is usually interactive, which allows brands and advertisers to engage deeper with the users. A display ad can also be a companion ad for a non-clickable video ad.

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts.

Google AdSense is a program run by Google through which website publishers in the Google Network of content sites serve text, images, video, or interactive media advertisements that are targeted to the site content and audience. These advertisements are administered, sorted, and maintained by Google. They can generate revenue on either a per-click or per-impression basis. Google beta-tested a cost-per-action service, but discontinued it in October 2008 in favor of a DoubleClick offering. In Q1 2014, Google earned US$3.4 billion, or 22% of total revenue, through Google AdSense. AdSense is a participant in the AdChoices program, so AdSense ads typically include the triangle-shaped AdChoices icon. This program also operates on HTTP cookies. In 2021, over 38.3 million websites use AdSense.

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Pay-per-click (PPC) is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher when the ad is clicked.

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Online advertising Form of advertising

Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising which uses the Internet to deliver promotional marketing messages to consumers. Many consumers find online advertising disruptive and have increasingly turned to ad blocking for a variety of reasons.

Advertising management Part of the advertising industry

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Search advertising

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Digital marketing Marketing of products or services using digital technologies or digital tools

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Targeted advertising Form of advertising

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References

  1. "Share of Voice: How to Calculate It & Why It Matters". MightyRoar. Retrieved 2017-02-15.
  2. "Discover your share of voice with Impression Share reporting". Inside AdWords. Retrieved 2018-07-23.