{"id":13977,"date":"2022-06-21T11:49:45","date_gmt":"2022-06-21T11:49:45","guid":{"rendered":"https:\/\/www.searchenginejournal.com\/how-to-calculate-seo-tam\/454487\/"},"modified":"2022-06-21T11:49:45","modified_gmt":"2022-06-21T11:49:45","slug":"how-to-calculate-your-total-addressable-market-tam-for-seo-via-sejournal-taylordanrw","status":"publish","type":"post","link":"https:\/\/marketingnewsbox.com\/?p=13977","title":{"rendered":"How To Calculate Your Total Addressable Market (TAM) For SEO via @sejournal, @TaylorDanRW"},"content":{"rendered":"

When launching a new product\/company or pitching for additional funding<\/a>, forecasting against your TAM (total addressable market) is a key component.<\/p>\n

The TAM is a key part of a user acquisition<\/a> strategy and your SEO campaign alike.<\/p>\n

It can help you prioritize optimization activities and forecast traffic potential based on your pre-determined keyword sets.<\/p>\n

Your total addressable market differs from your total market, as your total market is your maximum potential opportunity if no competition or alternate products with differing USPs (unique selling proposition) exist.<\/p>\n

Your TAM is a fraction of this market but is more closely tied to your personas and potential users<\/a> whose needs are more closely aligned with your product\/service.<\/p>\n

What Is The Total Addressable Market (TAM) Formula?<\/h2>\n

The defined formula for calculating your TAM (in a general business sense) is:<\/p>\n

Potential Market x Competitive Position = TAM<\/p>\n

Your potential market is the number of potential users, e.g. the number of email users in the world is estimated to be around 4.03bn, but if your competitive position is to cater to U.S. users only, your TAM is approximately 250 million.<\/p>\n

Your TAM can also be influenced by users who use adjacent products.<\/p>\n

For example, suppose you\u2019re an online service that focuses on user privacy as a core USP.<\/p>\n

In that case, users of other privacy-focused products such as Brave<\/a> (browser) and DuckDuckGo<\/a> may fall into your overall TAM.<\/p>\n

When we look at our SEO TAM, however, we can use existing tools and data to create estimations of our total TAM and then break it down by potential user needs (matching your personas).<\/p>\n

Establishing Your TAM<\/h2>\n

Establishing your SEO TAM, for me, is a three-step process:<\/p>\n