A new brand needs a share of advertising voice well above its target market share to reach it.
Peckham's 1975 rule from A.C. Nielsen data: a new brand needs roughly one and a half times its target share in advertising voice. It is why launch budgets are disproportionate to launch revenue.
In practice
- A launch budget three times the first year's revenue looks reckless in the accounts, and is simply what buying the share costs.
- A challenger that spends in proportion to its current share stays at its current share, which is the trap the rule names.