Everyone loves big numbers. But when you’re pitching a new product, it’s not about how big your TAM (Total Addressable Market) is. It’s about how much you can realistically grab — your SOM (Serviceable Obtainable Market).
Breaking Down the Market Circles
This SEMrush graphic nails the concept.
- TAM: everyone who could buy your product.
- SAM: the slice of TAM you can actually reach.
- SOM: the chunk of SAM you can realistically win.
Why It Works
- Forces focus on realistic growth
- Helps you find low-hanging fruit in marketing
- Keeps your goals achievable and investors confident
- Aligns resources with actual opportunity
Examples
- Tesla’s TAM: global car market. SOM: luxury EV drivers.
- Airbnb’s TAM: global lodging. SOM: travelers booking online.
- Shopify’s TAM: global retail. SOM: small businesses selling online.
Analyzed by Swipebot
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