This document discusses how to measure "ecommerce domination" and owning more of the total addressable market (TAM). It explains that the TAM is the overall revenue opportunity available if 100% market share was achieved. To measure ecommerce domination, you compare your company's year-over-year growth to the growth in the TAM. The document cautions that year-over-year growth does not necessarily mean growing the TAM. It provides an example of estimating annual incremental revenue from a new initiative. Finally, it advises comparing your company's performance to search demand trends to better understand how you are performing relative to the market.

1. How do you measure
“ecommerce domination”?
1
Jacque Urick, Head of SEO NA

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4. The “Total Addressable Market” is
the overall revenue opportunity that is
available to a product or service
if 100% market share was achieved.
Total Addressable
Market (TAM)
$10B
Global Market $80B

5. Total Addressable
Market (TAM)
$10B
Global Market $80B
Your Share = .8%
5

6. eCommerce Domination
=
Owning more of the TAM

7. Is YoY Growth the
same as growing the
TAM?

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We Gotta go Back In Time

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Let’s say we
sell she-sheds
by the seashore

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CONFIDENTIAL
Average MSV Average CTR Average Est. Monthly Search
Traffic
4,000,000 MSV X .03 = 120,000
We have been tasked with sizing an initiative for 2020

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Average Est.
Monthly Search
Traffic
Average RPV Average Est. Monthly Revenue
120,000 x $1.00 = $120,000
Avg (CVR x AOV)
120,000 x .01 x 100 = $120,000
We take the estimated traffic number and multiply it by revenue per visit (RPV) or
conversion rate multiplied by average order value (CVR x AOV)
Next, we find the $ of the initiative

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Average Est. Monthly Revenue # of months Average Est. Annual
Revenue
$120,000 x 12 = $1,440,000
Then you annualize that.

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Average Est. Monthly Revenue # of months Average Est. Annual
Revenue
$120,000 x 12 = $1,440,000

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Average Est. Annual
Revenue
Last 12 months of
Revenue
Average Est. Annual
incremental
$1,440,000 $1,200,000 = $240,000 (20%)
How much are we adding to the business?
What we really need is the incremental growth

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17. Place image over the box
You shipped it!
Congratulations!

18. How Are We Doing?

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Initiative: Sheds Domination
Sheds had a slow start last spring and a good surge in the busy season and it appears that sheds are
doing even better this year until that May dip.
Overall we end 2020 -3% clicks vs PY and our goal was +20% 😩
Release Release 2

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Initiative: Sheds Domination: The Boss’ fire drill feedback
Your boss wants a post mortem on these initiatives. Is it just COVID? Is it Seasonality?
👍🏽
👍🏽
👎🏽
Release
👎
🏽
Release 2

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Google Trends Shed Seasonality!!!

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It’s Tempting - But Don’t Do This!!!

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Its Tempting - But Don’t Do This!!!

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It’s Tempting - But Don’t Do This Either

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It’s Tempting - But Don’t Do This Either

26. You can only compare
the % change
between the two sets
of data.

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Calculate the YoY value change
Let’s look at the value change in the Google Trends data YoY

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Initiative: Sheds Domination?
Let’s compare our performance to search demand. We CAN compare these two sets of data because
they both represent % change.

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While visits were down 3%, we underperformed the
market by 15% in 2020
Let’s compare our performance to search demand in a clearer way by looking at the differences
between the % change.

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Initiative: Sheds Domination 2021! We’re outperforming
the market by +15% YTD
👍🏽
Eventhough there is seasonal demand in May this year, we’re outperforming it!

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1. This is a comparison of two indices, you can only
compare the rate of change relative to one another.
2. This doesn’t tell you how much market share/ share of
voice you have.
3. This doesn’t tell you how big the overall market/search
demand is.
4. This is a tool for your toolkit to help you create a
narrative.
Disclaimers!
Fine Print: This is directional & not perfect

32. Ok, but
how do I scale this?

33. Place image over the box

34. Place image over the box
YoY trends for multiple terms/categories with Pytrends +
Connected Sheets

35. You can only compare
the % change
between the two sets
of data.

36. Fit image to the box
Cheems SEO Doge only
looks at YoY
relative to their
business.
Don’t be Cheems.

37. Swole Doge looks
not only at our
YoY data but also
compares it to how
we move vs market
demand.
Be Swole Doge.

38. Thank you!