Marketing Metrics:

An examination of share of voice

In recent years, the push for greater business efficiency and financial accountability
has led to an increase in the use of metrics within marketing. While there are a
seemingly infinite number of marketing metrics, this paper will focus on one in
particular - share of voice. Firstly, a general definition of metrics will be given, and the
use of metrics within marketing discussed. The nature of brand competition and
differentiation will be explored. Secondly, share of voice will be defined and some
methods for measuring share of voice will be examined. Thirdly, the potential benefits
and detriments of share of voice will be discussed, and alternative metrics will be
given.
A metric is system that measures or quantifies a trend, dynamic or characteristic
(Ambler 2000). Metrics are used in nearly all industries to help professionals
understand and explain events, as well as assisting with forecasting or projection of
future events. Metrics allow for the comparison of events across different time frames,
even between different companies. Marketing has long been considered an art rather
than a science and as such, quantitative reporting on marketing results was considered
to be extremely difficult (Clark & Ambler 2001). But increasingly, as firms attempt to
maximize value and cut costs, it has become essential for marketers to be financially
accountable for their actions. This has reinforced the need for metrics, as without
measurement it is impossible for marketers to be accountable.
Traditional financial measures such as net sales or return on investment (ROI), though
applicable to marketing, can be less than helpful when trying to identify the effects of
a specific campaign on customer awareness or brand recognition (Ambler 2000).
Consequently, increasingly sophisticated methods of quantifying marketing success
have been developed (Davis 2012), such as market share, market penetration,
customer attitudes and brand awareness. But there is no one best way to measure the
effectiveness of marketing investment (Armstrong 2014). There are an infinite number
of marketing metrics and the appropriateness of each metric will depend on the brand,
the business and its goals. A car manufacturing company will have very different goals
than a packaged goods company. The key is to identify the few key measures that
truly drive the business, and include these in the metrics portfolio or dashboard
(Booker 2008).
With the growing accessibility of markets and the expansion of product choices, levels of
competition are higher than ever. Increasingly, brands play an important role in the decisionmaking step of the purchasing process. Products that are seemingly identical can be
differentiated by their brand, and the knowledge and feelings customer have towards that
brand (Keller 2009). Market share is often acquired not on the basis of actual product content,
but through the customers awareness and perception of brand (Wong & Wu 2013). Wellknown brands generally experience higher levels of purchase and command high consumer
confidence. Well-known brands are also able demand a price premium, even if the offering is
identical to a lesser-known competitor (Reynolds & Phillips 2005).

To this end, share of voice (SOV) has become a metric upon which many marketing teams
place great importance. Share of voice quantifies the presence that a specific product or brand
enjoys (Farris et. Al 2010). 'Share' relates to the percentage of all content and conversations
about a brand or product, compared to its competitors. This means that if two brand names,
like Coca Cola and Pepsi, were to advertise in one product category and Pepsi has a total
volume of advertising of 60%, Pepsi would have the greatest share of voice in that specific
product category. The term 'voice' can either relate to specific forms of media such as
television advertising or it can include all content relevant to a business product , from
newspaper advertising to social media activity (Davis 2012)
There are a variety of different metrics that can be used to measure SOV. From a purely
quantitative perspective, it could be expressed as a percentage:
Share of voice (%) = brand advertising ($ #)
Total market advertising ($ #)
This can be a useful metric for measuring a single source of advertising, such as television or
radio (Farris et. al 2010).However, with the advent of social media, online advertising,
customer product shares and relevant hash tags; SOV is no longer limited to traditional forms
of advertising. Thus, it is very difficult to calculate if businesses want an inclusion of all
different forms of voice.
In these circumstances, brand awareness can be a more useful measure of a business' SOV.
Brand awareness refers to the likelihood that a brand name will come to mind and the ease
with which it does so (Keller 1993). Measuring brand awareness is far more qualitative than
quantitative process. Rather than analysing the overall advertising figures, customers
knowledge levels regarding a brand need to be assessed and evaluated. This can be done
though brand awareness surveys. These surveys ask aided questions prompting consumers
with a specific brand name or logo to see if they recognise it and unaided questions
asking an open-ended question about your product category without mentioning your brand
name specifically. Brand awareness surveys can be used to gauge the effectiveness of share of
voice campaign (MacDonald & Sharp 2000). For example, if you have recently significantly
increased your online advertising presence, a comparison of survey responses both before and
after the campaign could give evidence as to whether or not awareness has increased.
Another way to measure SOV is to focus solely on a business' digital share of voice (DSOV).
DSOV is the percentage of all the online content and conversations about a company,
compared against those of its competitors (Cramer 2014). It can comprise of online reviews,
social media activity, advertising and search engine results. DSOV can be measured using
data analytics tools, and can not only provide data regarding overall SOV, but can include an
analysis of key words used in relation to a brand or track hash tags that are used on social
media in connection with a brand. Rather than relying on verbal word-of-mouth, use of
DSOV allows a business to track what people have been saying in relation to their product
through social media (Kaufman 2009). DSOV can also be used to calculate the digital

activity of a business' competitors, and allow ongoing monitoring and evaluation of emerging
competitive threats (Southgate 2011)
There are benefits to increasing a business' SOV. SOV can have a direct impact on how
customers feel about and perceive a brand. Campaigns that increase SOV can also positively
increase the relationship between customers and a brand, if the campaign is well-targeted
(Reynold & Phillips 2005). There have also been several studies showing a link between
SOV and market share (Hansen & Christensen 2005) (IPA & Nielsen Analytic Consulting
2009). All things being equal, a brand whose SOV is greater than its existing share of the
market is more likely to gain additional market share (Armstrong 2014). The excess share of
voice (ESOV) is what pushes the growth in market share. However, it is important to
recognise that generally, between different products, all things are not equal. Clarke (2009)
identified four factors as having an effect on the creation of ESOV brand size, brand
performance, age of product and campaign quality. These factors explain why all firms
cannot simply spend more on advertising and expect to see an increase in market share. For
example, small firms will need to spend a greater amount than large firms to increase their
SOV. Advertising campaigns that are creative and attention-catching can also increase SOV
much more easily than high-volume advertising campaign of average quality (Clarke 2009).
There can be some problems with focussing too intently on SOV as a measure to increase
market share. An expensive and high volume advertising campaign that increases SOV and
market share is unlikely to be sustainable. This may lead to the larger portion in market share
being rented rather than an actual long-term gain (Reynolds & Phillips 2005). Attempts to
maintain this level of market share can lead to overspending on marketing. SOV also does not
indicate the relationship or feelings customers may have towards a brand or product. If a
business undertakes to increase its SOV through an annoying or poorly constructed campaign
may find that although customers become more aware of the brand, they also have increased
negative feelings in relation to the brand (Westberg & Pope 2014). As a reflection of brand
perception or consumer response, measures such as SOV are unable to provide enough
information. Yet SOV has endured as a popular marketing metric, as it is easily measured and
understood.
Rather than focussing on SOV, businesses to look instead at brand equity. Brand equity
relates to the overall value of a brand. When a product is trusted and valued by customers,
this means the product has a high level of brand equity (Farris et. al 2010). Brand equity is
built around the feelings, perceptions and experiences of a customer, associated with a
specific brand. Marketers can increase brand equity by creating awareness and positive brand
(Keller 2009) Brand equity metrics often attempt to track customer satisfaction and customer
loyalty. This can be measured through customer's satisfaction levels and their willingness to
recommend or repurchase a particular brand. However, brand equity metrics come with their
own set of difficulties. It is difficult to clearly show the financial returns of marketing
activities based around improving brand equity (Reynolds & Phillips 2005), and building a
strong level of value and trust within customers can be time-consuming. Brand equity needs
to be viewed as a long-term marketing investment, rather than a quick-fix.

While most companies understand the need for marketing metrics and the benefits to be
gained through their use, many businesses still do not implement metrics into their marketing
practice (Best 2010). A 2010 survey of 400 companies found that 75 percent recognized the
need for marketing metrics, but only 25 percent had implemented a metrics program within
their business (Schreuer 2009). For many business managers of leaders, marketing metrics
seem difficult to use or hard to understand. What marketers need to remember is that the most
important step of using metrics is to decide which metrics will best aligned with the goals of
the business (Booker 2008). Once metrics have been chosen, it is just a matter of analysing
the correct data sources and presenting this information in a relevant and understandable way.
By making the information both relevant and easy to understand, marketers will have greater
success at providing evidence of the effects of their marketing actions, and be more credibly
able to request greater investment in marketing activities (Best 2010).
Businesses are now operating in an environment where poor decision making may be too
costly to absorb. Increased competition and more demanding customers make metrics critical
for every organisation. Businesses need to evaluate the marketing metrics available to them
and successfully couple them with their long term business strategy. For some businesses,
increasing SOV may be an effective way to build market share and increase returns from
marketing. Other businesses may choose to focus on loyalty metrics, such as brand equity to
build a strong and long-lasting customer base. Regardless of the metric chosen, marketers
need to start understanding and using metrics in their day-today work. Without effective
implementation of marketing metrics, marketing departments will struggle to remain relevant
in a world of increasing accountability.

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