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The Importance of Market Share in Paid Media Marketing

When it comes to paid media, market share is critical for predictable and, ultimately, honest results.

Let’s look at an example:

For the sake of simple numbers, let’s say “marketing automation services” is performed 100 times per month. Out of those 100 searches, let’s say 10 people are actually going to buy marketing automation software.

Therefore, if Steadfast only funds our ads enough to cover 90 of those searches, we could end up with no sales or we could end up with 10. That’s the kind of volatility that leads to massive waves of success…and month-long droughts. On the other hand, if we cover 91 searches, we know we’ll get at least 1 sale, and if we fund ads enough to cover the market, we know we get 10 sales every month.

As you can see, the more market share you have, the more predictably your business can run.

So, we know market share is important but, if you’re a small air conditioning business like some of our clients, it’s unlikely you have $74,000 laying around to cover the entire Dallas-Fort Worth Air Conditioning market, much less $74,000 each month.

So, how do small businesses gain meaningful market share in crowded, competitive markets?

Start with your niche.

Then, once the cashflow is consistent, you can expand your efforts. It’s best to define your niche in at least one of these 2 ways:

1. Service or Product

Even if your company offers multiple products or services, picking one to focus on can really help stretch your budget. Not only can you pick your most profitable or most popular services, but you can also cut down on required collateral since each advertised product will need a highly-specific landing page.

So, if you’re strapped for cash, but still need customers in the door, focusing your budget on a single service or product can help improve your market share.

2. Location

If you’ve gotten down to a single product and your budget is still insufficient to capture meaningful market share, it’s time to narrow down where your ads show. If you’re a global brand, that might be a country. If you’re a small business, that could be a single zip code. While the results may not be as big with a zip code as with a country, the results will be consistent and actionable, which is the ultimate goal.


Once you’ve got a good handle on a specific product in a specific market, it’s time to introduce either another product or another market to the mix. Get meaningful market share in that space, and then repeat the process until all of your ads are properly funded and your business is booming.

If you’re interested to learn how much it would take to gain meaningful market share in your niche, shoot us an email at or give us a call at (877) 753-7034 and we’ll be happy to help.

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