The power of share of search in predicting market share growth
In the fast-paced world of B2B communications, proving the value of your efforts is more important than ever. One metric that’s gaining attention for its predictive power is share of search. This simple yet powerful tool can give you valuable insights into your brand’s future market share, making it essential for any B2B communicator to understand.
What is share of search?
Share of search refers to the percentage of search engine queries that your brand captures compared to your competitors. In essence, it’s a measure of how often people are searching for your brand relative to others in your market. If more people are searching for your brand, it’s a strong indicator that your brand is gaining interest and attention.
Why does it matter?
Les Binet, a renowned expert in marketing effectiveness, has demonstrated a strong correlation between share of search and market share. His research suggests that changes in share of search can be used to predict changes in market share.
This metric acts as a leading indicator, predicting where your brand will be in the future—sometimes up to 12 months ahead, depending on the industry. This gives businesses a critical window to adjust strategies and stay competitive.
Case studies: Real-world examples of share of search impact
1. LG Electronics in the mobile phone market
Les Binet’s research highlights the case of LG Electronics in the mobile phone market. Over a multi-year period, LG’s share of search closely correlated with its market share, with changes in search interest predicting shifts in market share up to six months in advance. For example, when LG’s share of search began to decline, its market share initially held steady but eventually dropped, mirroring the earlier decline in search interest. This case demonstrates how share of search can provide early warnings about market performance, allowing brands to adjust strategies proactively.
2. Volkswagen in the automotive market
In another example from the automotive industry, Volkswagen’s share of search data was used to forecast its market share. Les Binet’s research found that share of search could predict market share movements up to 12 months ahead. Despite fluctuations in market conditions, the predictions based on share of search were highly accurate, outperforming other forecasting methods. This example underscores the power of share of search as a reliable predictor of market share trends, especially in industries with long purchase cycles like automotive.
Conclusion
These examples illustrate the tangible impact of increasing share of search and how it correlates with market share. For B2B brands looking to grow, understanding and leveraging share of search is not just beneficial—it’s essential.
It is important to point out, however, that the relationship and correlation is not always direct and varies by industry and context.
By staying ahead of trends and using share of search data effectively, you can make informed decisions that boost your brand’s market position and drive long-term success. Share of search isn’t just about knowing where you stand today; it’s about predicting where you’ll be tomorrow.
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Source: Les Binet, ‘EffWorks Global 2020: Share of search as a predictive measure presentation’.
