How to estimate the size of your market

[JasonKing]

When it comes to finding a new market to enter, we're taught that one indication there's money to be made is ADVERTISING.

Unfortunately, I was born a numbers person...

So, my question is:

"How do you go about estimating the size of a market online in dollars?"

Thanks in advance

-JasonKing

[ShaneM686]

Originally Posted by JasonKing

When it comes to finding a new market to enter, we're taught that one indication there's money to be made is ADVERTISING.

Unfortunately, I was born a numbers person...

So, my question is:

"How do you go about estimating the size of a market online in dollars?"

Thanks in advance

-JasonKing

Here are some great things to start with.

First, use google adwords keyword tool. This will estimate the number of people both globally and locally that search for related terms you are looking at.

Second, look at the product you want to sell. Is it something would buy online or would prefer to buy in stores? Is the keyword you are focusing on a buy word like "hooded fleece jackets" or a information search like "how to bake cookies"

Thirdly, look at the cost of how much a site would take to set up, all the SEO, and if there is a company you can be an affiliate for.

There is much more but i hope this helps!

[ArticlePrince]

It depends a lot on what kind of model you use. I use list building, so I go by the total number of monthly local searches for the broadest term I targeting and multiply by .45 . This number is the most I can get monthly before the law of diminishing returns kicks in :-)

Sean

[KenThompson]

Hey Jason,

I'm also a numbers person. But that's ok.

I would suggest you experiment with searching using phrases you think
will yield the results you want. Doing so will give you some good info that
will allay any possible concerns regarding market spending.

Here's an example.

If you spend time looking, then you will have a nice collection of places you
can quickly reference.

Ken

[you2life]

In addition to what others have contributed, check the number and quality of forums in your market and what kind of advertising tehy are running there. You can also check howmany magazines are published in your market because magazines are only published when there is sufficient amount of demand and interest in a market.

[jasonmorgan]

"How do you go about estimating the size of a market online in dollars?"

Search engine traffic, trends and common sense.

Probably not the best combination of data to use but it's what I have to work with.