How is market share calculated?

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So if you operate in a billion dollar market, and your annual revenue is $100,000,000, you have a 10% market share.

In the online space, however, it may not be just about sales. Let's say that, in the example of Facebook (this is what the Court highlighted as a critical point), the main service it provides - the social network - is in fact free. The advertising funds they receive are part of a different market, that of online advertising.

So with online businesses, you can also consider active users, traffic and other criteria, instead of just considering sales.

Regardless of the metric used, it is important to keep in india telegram number database mind that market share is never a constant number. It is subject to change, so if someone talks about market share, they tend to be referring to specific periods – quarterly or annual statistics.

There are a few popular methods for calculating market share:

The classic market share formula is based on total industry sales.
The market share formula is customer-centric, so you need to know the total number of customers in your market.
The relative market share formula is based on the market shares of the major players in your industry.
In the online realm, however, sales and customers can be easily replaced by the notion of traffic, as the top-line numbers can be difficult to grasp unless you're dealing with a market made up of public companies.

Market share formula
Find your company's total revenue for a given period and divide it by the industry's total revenue for the same period; then multiply that figure by 100 to get a percentage.