Kenny ortega s addressable market
TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them?!
Kenny ortega s addressable market
TAM, SAM, SOM: How to Calculate Them for Your Industry
There are three acronyms you need to know before you launch a new product: TAM, SAM, SOM.
They’re your roadmap to understanding the market landscape.
Dive into who your audience is, their value perception, and the size of your opportunity – before you even launch.
We’re breaking down each of these: Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM).
In this comprehensive guide, we will explore the utmost importance of these metrics, walk you through how to calculate them with examples, and give you the tools to do it yourself.
Introduction to TAM, SAM, and SOM
Before we delve into the details, let’s define the concepts of TAM, SAM, and SOM.
Total Addressable Market (TAM)
TAM represents the total revenue opportunity available for a product or service in a specific market or industry.
It is the maximum revenue a company could generate if it held 100