About ESOV
DPR&Co frequently develops marketing business cases for our clients by triangulating historical and projected performance based on metrics including brand recognition, purchase intention, and brand share-of-voice, the latter being one of the most reliable predictors of campaign performance.
In fact, for over half a century, marketers have relied on the “Excess Share of Voice (SOV) Rule” to determine their advertising budgets and achieve specific growth targets. This rule states that brands that invest more in advertising than their market share tend to experience growth, while those that invest less tend to shrink.
The difference between a brand’s share-of-voice and its share-of-market, known as excess share-of-voice (ESOV), plays a crucial role in determining growth rates. Although this rule has been widely recognized in the B2C marketing arena, recent research (LinkedIn B2B Institute 2022) highlights its applicability and effectiveness in B2B markets as well.
ESOV in times of economic slowdown
Share of voice is a measure of relative reach, frequency and salience. That means buying eyeballs. In most media markets, the cost of an eyeball is considerably lower in tough times than when the economy is strong, purely as a product of media demand. Media exposure is as perishable as electricity; and like energy, media is price volatile. As soon as inventory is being left on the table, deals are there to be done. We often saw discounts, for example, of up to 80% over card rates during the GFC.
During these times, people are more willing to explore new brands or reconsider current loyalties. This creates a rare, narrow, window of opportunity for companies to win over new customers through relevance, value, and connection.
And the available value goes well beyond undercutting the rate-card, with media becoming much more amenable to creative business opportunities. DPR&Co, for example, was able to negotiate a $10m media commitment on a revenue split deal with the 10 Network during the GFC.
So, with the current softening of the economy, the opportunity exists to achieve ESOV more affordably than during times of economic certainty.
But the benefits of this cheap ESOV can be leveraged over an extended period. US Bureau of Economics/McKinsey analysis that shows that organisations that continue to invest in ESOV and other brand building activities during softer periods, hold the advantage they create for an average of a decade.
That’s a dividend worthy of chasing.
Validating ESOV as a growth driver
Proportional growth: Extensive research by Les Binet, Peter Field, and The Ehrenberg-Bass Institute reveals that ESOV correlates with market share growth in both B2B and B2C markets. In B2C, a 10% ESOV leads to an annual market share growth of 0.7%, demonstrating the power of the SOV rule in driving business growth. B2B markets exhibit a similar correlation, with a 10% ESOV resulting in 0.6% annual growth.
The top 5
Binet and Field’s research report for the B2B Institute provides valuable insights into maximizing SOV and driving business growth. Here are the top 5 principles for marketers to consider:
- SOV works for everyone: The ESOV rule benefits both large and small firms. Even small businesses with minimal market share can experience growth by investing just slightly more than their category’s average advertising spend. As companies expand, they can allocate progressively larger budgets to advertising to accelerate growth over time.
- Striking a balance: Achieving the optimal balance between brand building and short-term sales activation is crucial for effective marketing. Allocating approximately 50% of the budget to brand-building activities and 50% to activation efforts yields performance four times superior to solely focusing on short-term sales strategies like lead generation. Brand campaigns, with their cumulative impact over time, contribute significantly to long-term success.
- Reach for new customers: Effective marketing strategies should target both existing customers and potential prospects to maximize SOV. Reach strategies that encompass the entire category, rather than solely focusing on existing customers, prove most successful. Increasing category reach leads to a corresponding increase in SOV.
- Cultivate mental availability: Building “mental availability” is crucial for achieving brand fame and being the top-of-mind choice for consumers. Brands must reach all category buyers and create advertising that differentiates them from competitors. Unique, attention-grabbing ideas are more likely to be remembered and talked about, contributing to increased mental availability.
- Harness the power of emotion: Emotional campaigns have a long-lasting impact, as they embed more deeply in consumers’ memories compared to rational campaigns. Emotion plays a significant role in brand campaigns, as it not only ensures that ads are seen but also that they are remembered, fostering brand recall and recognition. And with most advertisers adopting a siege mentality during tough times, they frequently make the mistake of ditching emotion in favour of price, features-and-benefits-based messages. In this environment your emotion-tapping campaign will have even more cut-through as it activates the limbic (decision-making) brains of your potential customers.
The Excess Share of Voice (SOV) Rule has proven its effectiveness in both B2B and B2C marketing. Applying this rule can unlock substantial growth opportunities. By following the five key principles of the SOV formula, businesses can grow their Share of Market (SOM) and drive business growth. Achieving high SOV, broad category reach, and optimal balance between brand building and activation strategies are crucial for long-term success. By embracing these principles, you can propel your organisation forward and forge genuine growth.
ESOV in today’s softening economy
The shifting market landscape of 2025 presents a defining moment for ambitious brands. Changing consumer priorities and behaviours, driven by uncertainty, will continue to open pathways for businesses to strengthen brand positioning by engaging receptive, reevaluating consumers.
Meanwhile, the acceleration of the following digital transformation continues to shape marketing fundamentally. Brands have access to an unprecedented array of tools, enabling sophisticated, data-driven campaigns that reach audiences with precision and personalise interactions in previously unimaginable ways.
Competitors, whether due to budget constraints or caution, are scaling back their marketing efforts. For brands ready to grow in the moment, share of voice is not only crucial for immediate gains, but also a strategy for long-term success. By staying visible, forging consumer connections, and strengthening trust, these brands are positioned to benefit when the market eventually stabilises, and confidence is restored.
Growing ESOV (Excess Share of Voice) now is, future-proofing your brand. By leaning into visibility and relevance during uncertain times, brands can emerge as market leaders when stability returns.