Understanding Share of Voice

Posted on:

April 13, 2023

Put simply, share of voice (SOV) measures a brand’s placement on the digital shelf in relation to the brand’s competitors. It does not measure sales within a category—that is, market share.

Put differently, SOV is a predictor, but not a guarantee of market share. (Think of SOV as an input, market share as an output.) By keeping an eye on SOV, companies—and the marketing agencies they work with—can ensure that their eCommerce product listings receive the right amount of attention from potential consumers online.

How is it measured?

For Compass, SOV measurement is all about keywords. With the help of our data-tracking partner, Jungle Scout, we operate from a direct understanding of a brand’s share of total placements for any given keyword on the dominant e-Commerce platform, Amazon.

This requires us to distinguish between unweighted SOV, which refers to a brand’s placement on a keyword search relative to total placements, and weighted SOV, which places higher value on top-of-search placements.

Because SOV is prone to fluctuate fairly dramatically from week to week, we find that a monthly measure provides the most accurate picture.

Why should brands care?

SOV is important because a better market position can lead to better sales. The reverse is also true.

Although a decline in SOV does not directly translate to a decline in market share, it does indicate that competitors are gaining ground on a keyword or category. This could involve the emergence of a new brand in the same space.

If a direct competitor is finding success by pursuing an advertising or marketing strategy that differs from yours, it always pays to know. The goal is not just to win new customers, but to block competitors from winning them.

What next?

A brand may choose to respond to undesired changes in SOV by revising its Amazon game plan. The most direct way of accomplishing this is to increase pay-per-click (PPC) bids on a given keyword, including top-of-search bids. It may also be useful to revise product copy for specific products, incorporating targeted keywords to ensure that organic rankings improve, too.

Of course, it is never enough to simply throw money at promoting a product. A brand’s campaigns should always be backed by sensible strategic objectives and well-crafted messaging to favorably impress the target customer.

Reach out to learn more about how we can help your brand improve its SOV and other key marketing metrics through strategies tailored to your needs.

Contributors

ARIEL TSENG

Director,
Client Development

Maria Mazariegos

Director,
Client Development

Gunnar Staples

Chief Innovation Officer

Keeley smith

Graphic Designer

ERIC MILLER

Copywriter

WE ARE HERE TO HELP

Compass Marketing can help you discover opportunities for your brand. Our account managers and eCommerce experts use a holistic approach based on data and insights to help guide brands to success. If you would like to learn more, please reach out to info@compassmarketinginc.net! We are always happy to help and would love to learn more about you and your brand.

ABOUT COMPASS MARKETING

We are dedicated to making brands more valuable by combining the very best in insights and experiences with unmatched human interaction. Our team of sales, marketing, and digital experts is dedicated to growing our clients’ market share and building brand equity. We combine art and science—pairing the personal expertise of our team with proprietary technology—to help brands grow quickly and efficiently. As an Amazon Ads partner, we can help brands realize significant growth on one of the world’s largest eCommerce retailers.

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POST TAGS: #COMPASSMARKETING, #DIGITALMARKETING, ADVERTISING, AMAZON, ECOMMERCE, keywords, shareofvoice, SOV

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