Episode #
Audience TAM vs Revenue TAM
December 03, 2023

In episode #2625, We discuss the difference between audience TAM (Total Addressable Market) and revenue TAM. We explain that venture capitalists often look at the total addressable market when investing in companies, leading to higher market caps. However, in business, the focus should be on revenue TAM and the size of the spending market. We provide examples of content that generates a large audience TAM but doesn’t drive revenue. We emphasize the importance of understanding when to build reach versus when to convert, and the need to prioritize revenue TAM for business growth.

Don’t forget to help us grow by subscribing and liking on YouTube!

Check out more of Eric’s content (Leveling UP YT) and Neil’s videos (Neil Patel YT

TIME-STAMPED SHOW NOTES:

  • (00:00) Today’s topic: Audience TAM vs Revenue TAM
  • (00:41) Difference between audience TAM and revenue TAM
  • (01:09) Importance of revenue TAM in generating business revenue
  • (01:48) Building a personal brand requires a massive audience TAM
  • (02:13) Example of Salesforce and their focus on revenue TAM
  • (02:41) Difficulty in generating likes for revenue-focused content
  • (03:29) Balancing reach and conversion in business strategies
  • (03:53) Easier to grow a business with a massive revenue TAM
  • (04:11) Understanding when to focus on reach vs conversion
  • (04:53) Audience TAM can be a distraction if it does not lead to business outcomes.
  • (05:12) That’s it for today! Don’t forget to rate, review, and subscribe!

Go to https://www.marketingschool.io to learn more!

Leave Some Feedback:

  • What should we talk about next? Please let us know in the comments below
  • Did you enjoy this episode? If so, please leave a short review.

Connect with Us: 

Learn more about your ad choices. Visit megaphone.fm/adchoices

See omnystudio.com/listener for privacy information.

Discover Latest Episodes

Episode
Is Cannes Lions worth it?, Ramp overwhelms Brex’s marketing, Gary Vaynerchuck says, “Advertising is now a ‘meritocracy’”
June 24, 2024

In episode #2764, we discuss the value of attending the Cannes Lions International Festival of Creativity, the importance of attending niche conferences for better ROI, Gary Vaynerchuk's perspective o...

Episode
The #1 Strategy to Break $1M as an Agency Owner
June 22, 2024

In this bonus episode, we give you a sneak peek into what our Agency Owners Association (AOA) hangouts look like. Our discussion revolves around the challenges of maintaining quality while scaling a b...

Episode
Why rebranding is a mistake most of the time (ConvertKit to Kit), Google AI Overviews only impacts 15% of queries; down from 84%, Gary Vee on the #1 marketing opportunity in 2024, Why productized services are not actual services
June 21, 2024

In episode #2763, we discuss ConvertKit's rebranding to Kit and the potential drawbacks of the name change. We also touch on AI overviews in Google search results, the marketing opportunities of organ...