What is Brand Penetration?
Brand penetration definition: brand penetration refers to the number of people who buy a brand’s products, divided by the total number of available people in the niche market.
For example, If we were calculating the brand penetration of two brands in a marketplace with a population of one million people:
- Brand A: 340,000 / 1,000,000 = 34
- Brand B: 210,000 / 1,000,000 = 21
This calculation aims to demonstrate the number of people in a particular:
- Geographical location
Who choose to adopt a specific brand.
It is important to remember brand penetration is based on the number of people and not the number of dollars spent.
All have different levels of brand penetration in the search engine marketplace, although their core services are free of charge.