Audience TAM vs Revenue TAM

Marketing School - Digital Marketing and Online Marketing Tips · Dec 3, 2023 · 6m

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.

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