Posted in Marketing and Strategy Terms, Total Reads: 496
Definition: Share of Voice
In online advertising, Share of Voice is a model for calculating advertising, which focuses on the weight or percentage among other advertisers over a specified time period. For example, if there are five advertisers on a website, each gets 20 percent of the advertising weight. This method ensures optimisation of ad exposure, that is, all advertisements will be seen equally and one ad will not be seen any more than the other four.
This model is based on the concept of exclusivity. If the number of ad space on websites, email newsletters and other digital media platforms is limited, the probability of them being seen by their target audiences is higher. This limits the ‘ad noise’ on the digital platform. Further, because this method values quality of ads over their quantity, publishers are thought to have higher levels of interaction and credibility.
The Share of Voice model creates a mutually beneficial relationship between the web publisher and the advertiser. On one hand, the publisher does not have to rely on volume and can attract advertisers who want to specifically reach that publisher's audience. And on the other hand, the advertiser is willing to pay a premium for less competition and exclusivity for their target audience's viewership.