Wednesday, 19 August 2009

Reputation gives you attention, gains you time, gives you a chance

The Nobel Prize Economist Herbert Simon claimed that ''What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention, and a need to allocate that attention efficiently among the overabundance of information sources that might consume it.''

Of course this attention depletion is partly due to the fact that we are now a time poor society. We have so many demands on our time and hence our valuable attention that it's a wonder that brands can make the cut through required to make an impact.

Of course that's the power of Reputation. It gives a brand the level of attention from consumers that translates into time, and ultimately market share. That's all well and good if you are an established brand with large market share and a budget big enough to have a present you with a large share of voice in the market place.

But what of the challenger brands?

The recent IPA/Nielsen study 'How Share of Voice Wins Market Share' highlights the plight of these challenger brands

Brands with over 10% market share achieved on average around two and a half times the level of share growth per point of Excess Share Of Voice (ESOV*) that brands with market share levels of under 10%. Smaller brands therefore face an uphill battle to grow their market share through share of voice alone.

Seems like the challenger brands need to come up with some pretty effective campaigns to get the cut through they need.

(*ESOV being defined as as share of voice (SOV) minus share of market (SOM))

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