How to Calculate Market Share [Formula + Guide]

Market stock is the percent of a peculiar marketplace served by a peculiar company. It indicates however ascendant the institution is successful its niche and what imaginable it has for growth.

More specifically, marketplace stock usually refers to revenue marketplace share. (The information of full manufacture gross attributed to a company.)

For example, a institution that generates fractional of its industry’s gross has a 50% marketplace share.

But you tin besides measurement your marketplace stock of circumstantial metrics like:

• Monthly progressive users
• Website traffic
• Unit sales

Analyses are ever based connected a definite clip standard (e.g., the past fiscal year). And tin besides beryllium restricted based connected geographic areas, user demographics, etc.

It each depends connected what's utile for your analysis.

Relative marketplace stock shows what proportionality of the marketplace you service compared to your strongest rival. It helps you recognize your competitory standing.

For example, if you make fractional arsenic overmuch gross arsenic the manufacture leader, your comparative marketplace stock is 50%. 

As with modular marketplace share, you tin cipher your comparative marketplace stock of antithetic metrics, for antithetic clip ranges, and for antithetic segments.

The modular marketplace stock look is:

Market stock percent = (company gross / marketplace revenue) x 100

Let’s accidental the U.S. smartphone manufacture generated $80 cardinal of gross past year.

If Apple generated $40 cardinal of those sales, it had 50% marketplace share—(40 cardinal / 80 billion) x 100 = 50.

To marque marketplace stock calculations of circumstantial metrics, usage this formula:

Market stock percent of metric = (company metric / marketplace metric) x 100

Let’s accidental the smartphone manufacture made 1.2 cardinal shipments past year.

If Apple made 240 cardinal of those shipments, it had 20% marketplace share—(240 cardinal / 1.2 billion) x 100 = 20.

And this is the comparative marketplace stock formula: 

Relative marketplace stock percent = (company marketplace stock / strongest competitor’s marketplace share) x 100

Let’s accidental Apple is the marketplace person with a 25% marketplace share. And its biggest rival is Samsung, with a 20% marketplace share.

• Apple’s comparative marketplace stock is 125%—(25 / 20) x 100). This means they’re the marketplace leader. And their marketplace stock is 25% larger than their strongest competitor’s.
• Samsung’s comparative marketplace stock is 80%—(20 / 25) x 100). Their marketplace stock is 20% smaller than their biggest competitor’s.

To find marketplace share, you request to disagreement your institution metric (e.g., revenue) by the equivalent marketplace metric. Then multiply by 100 to get a percentage.

But what information should you use? And wherever tin you find it?

Let’s explicate however to cipher marketplace stock of antithetic values measurement by step. We’ll besides stock a escaped template you tin use.

1. Source Market Data

The marketplace stock calculations you tin marque are typically constricted by the marketplace information available. 

So, we urge that you cod marketplace information first. And enactment from there.

Potential sources see marketplace probe tools, databases, and manufacture reports.

A Google hunt similar this tin assistance you find the information you’re funny in:

If you can’t find information for your niche, effort collating it yourself.

For example, you tin download your competitors’ fiscal reports. Then, harvester their gross figures with your ain to get a marketplace gross estimate.

Market gross estimation = your gross + competitors’ revenue

Same goes for different metrics, similar portion sales.

The much competitors you cod information from, the much close your marketplace stock calculation volition be.

2. Collect Equivalent Company Data

Once you’ve collected your marketplace data, you request to cod the equivalent information from your company.

For example, marketplace gross and your company’s gross should subordinate to the aforesaid clip scope and geographic location. 

If you don’t usage like-for-like information successful your marketplace stock calculations, you won’t get a valid result.

All that’s near is to usage your information successful the marketplace stock look for your chosen metric.

As a reminder, it looks similar this:

Market stock percent of a metric = (company metric / marketplace metric) x 100

If you privation to marque definite you get things right, marque a transcript of our market stock calculator successful Google Sheets.

Simply input your marketplace and institution information successful the precocious table.

Or capable retired the little array with your ain and your competitors’ data. This allows you to cipher a marketplace information estimation and spot each company’s marketplace share.

(We’ve provided capable abstraction for 9 competitors, but you tin adhd oregon delete rows if necessary. Just marque definite to set the formulas accordingly.)

Traffic stock (or web postulation share) represents the information of visits that spell to your website retired of each the website visits made successful your industry. 

This helps you recognize however beardown your business’s online beingness is.

And with Semrush’s Market Explorer tool, you tin cipher your postulation stock successful seconds.

Just click “Find Competitors,” take your location, and participate your domain.

Then, click “Research a market.”

The instrumentality volition place your biggest postulation competitors and behaviour a marketplace analysis. (Based connected the clip standard and determination selected astatine the top.)

Go to “All Domains” to spot your ain and your competitors’ stock of traffic:

Or spell to “Benchmarking” and take up to 5 domains to compare.

In the table, you tin spot each acquisition channels’ stock of traffic:

• Total: Visits from immoderate channel
• Direct: Visits made erstwhile users benignant the URL into a browser oregon usage a bookmark 
• Referral: Visits from links connected outer domains
• Organic Search: Visits from unpaid hunt motor links
• Paid Search: Visits from hunt motor advertisements
• Organic Social: Visits from unpaid societal media links
• Paid Social: Visits from societal media advertisements
• Email: Visits from email links
• Display Ads: Visits from show advertisements (e.g., banner ads)

If your marketplace stock is debased successful a peculiar area, it suggests you’re missing retired connected imaginable traffic. So, you mightiness privation to revisit your selling strategy.

For example, if you person a comparatively tiny postulation stock successful integrated search, see investing much successful search motor optimization (SEO).

Market Explorer (and your Semrush .Trends subscription) besides gives you entree to a assortment of different insights. So, marque definite to research each the tools and reports.

Increasing marketplace stock is astir getting customers to take you implicit competitors.

Here are 8 tactics you should cognize about:

Outrank Your Competitors successful Search Results

Outranking your competitors for applicable hunt motor queries (or keywords) is 1 of the champion ways to divert invaluable postulation from their sites to your site. To lend to a higher stock of sales.

You tin find opportunities with Semrush’s Keyword Gap tool.

Enter your domain and a competitor’s domain.

Then, take your state and click “Compare.”

Scroll down to the keyword array and click the “Weak” tab. This shows keywords that the rival outranks you for.

You tin spot some of your positions successful the table. 

It’s a bully thought to prioritize keywords that:

• You already person a precocious ranking for (so you person less positions to gain)
• Have a precocious search volume (so the imaginable postulation gains are higher)
• Have with a debased difficulty score (this suggests it’ll beryllium easier to amended your ranking)

Check retired our usher for elaborate proposal connected improving your Google rankings.

Use a Competitive Pricing Strategy

Pricing is often 1 of the main factors successful buying decisions. Especially erstwhile it comes to products that are disposable from aggregate stores.

If you reassure customers that you’re ne'er beaten connected terms (like Best Buy does), you whitethorn beryllium much apt to unafraid sales.

You’ll conscionable request to marque definite that this attack works for your brand identity—and your fiscal model.

If you can’t perpetrate to permanently little prices, effort enticing customers with peculiar offers and sales.

Once you person the lawsuit connected your books, they whitethorn beryllium much apt to bargain again. 

Communicate a Unique Selling Proposition

A unsocial selling proposition (USP) explains what separates you from your competitors. Or what makes you special.

Some cardinal elements of Apple’s USP include:

• Design excellence
• User-friendly interfaces
• Emphasis connected privateness and security

Creating and communicating a beardown worth proposition gives customers a crushed to take your brand. So, it tin play a cardinal relation successful expanding your marketplace share.

Be Innovative

Whether it’s introducing caller merchandise features oregon bringing a caller work to the market, innovations tin assistance your concern basal retired from the crowd. And lick user needs that nary 1 other can.

You’ll request to behaviour market research to marque informed decisions astir immoderate needed probe and improvement (R&D) designed to substance innovation.

For example, you tin usage the Consumer Surveys app to stitchery feedback astir your ideas. And show trends successful user sentiments and behaviors. 

Strengthen Customer Loyalty

The stronger your lawsuit loyalty, the little apt you are to suffer marketplace stock to competitors.

Not lone are loyal customers much apt to marque repetition purchases (or enactment subscribed to your service), but they’re besides much apt to urge your marque to others.

Here are immoderate of the champion ways to physique loyalty:

• Deliver large lawsuit service
• Launch rewards and referral programs
• Offer exclusive deals to existing customers
• Solicit and enactment upon lawsuit feedback

One of the champion ways to support erstwhile customers engaged is done email marketing. Check retired our usher for proposal connected making it enactment for your brand.

Target New Demographics

Expanding your people assemblage into caller demographics tin beryllium 1 of the astir effectual ways to summation your marketplace share.

Consider the communicative of the Stanley Quencher.

This durable h2o vessel was primitively marketed to operation workers and outdoor enthusiasts.

But erstwhile the institution pivoted to targeting women, income skyrocketed. 

The strategy displacement helped Stanley turn its yearly gross from $70 cardinal to $750 cardinal successful 4 years, CNBC reported.

Acquire Your Competitors

If you person the superior available, acquiring oregon merging with a rival could beryllium the astir businesslike mode to summation your marketplace share.

For example, Facebook (now Meta) acquired WhatsApp to fortify its presumption successful the messaging space.

While Sephora acquired Feelunique to enactment its enlargement into the U.K. market.

Learn from Key Players successful Your Industry

By analyzing the cardinal players successful your industry, you tin observe ways to emulate their success. And place gaps successful the market.

Then, usage these insights to summation your marketplace share.

Here are immoderate of the champion tools for competitive analyses:

• Traffic Analytics: Learn wherever your competitors get their postulation from and what audiences they attract. You tin besides observe their astir visited pages and overmuch more.
• Organic Research: See which integrated keywords thrust the astir postulation to your competitors’ sites. And analyse their top-ranking pages.
• Advertising Research: Get insights into your competitors’ paid hunt strategies. You tin spot what keywords they’re bidding on, presumption their ads history, and more.
• EyeOn: Find retired erstwhile your competitors people caller blog posts, societal posts, Google Search Ads, and webpages. You tin way their societal engagement, too.

To effort these tools and dozens more, commencement your free Semrush trial today.