In a 9-minute YouTube video, Mark Ritson explains the concept of excess share of voice (eSOV) by examining how German supermarket Lidl boosted its market share in the U.K.
“Thanks to the work of marketing professor John Phillip Jones, we know that small brands have to work harder… About 30 years ago, Jones discovered an almost perfect correlation between a company’s share of market… and it’s share of voice (the proportion of advertising that it contributes to the category).”
“If a brand underspent, so it had a higher share of market and lower share of voice, eventually and perhaps inevitably, it’s market share would fall to its share of voice.”
“But in contrast, if a brand overspent, and had a higher share of voice versus share of market… in most cases its market share would eventually increase.”
“That positive difference between share of voice and share of market is called ‘excess share of voice’ (eSOV).”