Sizing Markets Underlying New Technology - Targeted Market Sizing

Targeted Market Sizing

Other more targeted methods of market sizing involve specific platforms or user characteristics.On one hand, if the technology relates to a specific distribution platform, then the total potential market would be equal to the related installed base. This information is available on Wikipedia for free under the heading "List of digital distribution platforms for mobile devices". For example, the Wikipedia page shows that the Android Market had an installed base of 400 million, the App Store had 365 million in June 2012, and the Nokia store 885 million in March 2012. In addition, the same page shows the number of apps available on each platform, the download count and the developers' cut per sale, which could also be useful valuation inputs. On the other hand, if the technology specifically targets a given demographic or behavioral profile, some of the main online advertising platforms can be excellent sources of free data. For example, Google's AdSense program has a useful keyword rating tool that can quantify the expected response for various keywords in different languages or countries. Another example is Facebook's advertising program, which shows the estimated reach for a given set of criteria. For instance, at the time this article is being written, there are 53.6 million Facebook users who live in India of which 28.15 million are between the ages of 15 and 18 inclusive. Of course, in both cases, the information obtained would have to be extrapolated to the general target market and used as an approximation, since neither Google nor Facebook account for all Internet users.

In conclusion we see that as technology changes affect the distribution and reach of internet users, markets size assessment presents a bubble whose unraveling deciphers not only size but interactivity, presenting a challenge in specific sizing.