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The platform aims to connect clients with on-call services focused on creative services such as graphic design, brand design, website design, video production/video editing, copywriting and copyediting, and digital influencers.
These companies can get the high-quality services they need without having to pay the costs of a big-name creative agency.
Defining Your Target Audience
Specifically, the target audience or the targeted users are small-to-medium businesses who need one-off creative services.
Before we deep dive into the TAM, SAM and SOM analysis of the above market, we will first look at the current market trends, actual market size and projected values of the related broader market–the creative agency market and the market size and trends of the digital freelancing platforms.
Creative Agency Market Size and Trends
The Global Creative Agency Industry market will register an incremental spend of about $90 billion, growing at a CAGR of 5% from 2019 to 2024. The overall advertising market was valued at $ billion in 2020. The spend of the global advertising industry is split into media planning & buying (% on average) and creative advertising (% on average).
[Year-by-year estimated market size of the creative agency industry globally at a CAGR of 5%]
2020: $ billion * % = $billion
2021: $ billion
2022: $ billion
2023: $ billion
2024: $ billion
The Global Gig Economy (Freelancing) Market Overview
There are several and various data that points out to the gig economy’s market trends–this includes freelancing, self-employed, and independent workers. Broadly defined, the gig economy includes multiple types of alternative work arrangements such as independent contractors, online platform workers, contract firm workers, on-call workers and temporary workers.
According to ____, by 2023, the projected gross volume of the gig economy is expected to reach $ billion globally–this figure of the gig economy includes only digital platforms that allow freelancers to connect with potential clients for short-term jobs, contracted work, or asset-sharing.
Current and projected revenue market size of the online or digital freelancing platforms
Globally, online or digital freelance platforms market size is projected to reach $ billion by 2026, from $3.4 billion in 2019, at a CAGR of %. Accordingly, Upwork, Toptal, Fiverr, Catalant, 99Designs, Freelancer.com, Guru.com, Skyword, and TaskRabbit are the key suppliers in the global freelance platforms market globally.
[Year-by-year revenue size of the digital freelancing platforms globally, in $ billions]
2019: $3.3 billion
2020: $ billion
2021: $ billion
…
202: $ billion
Target Audience Statistics And Data for TAM, SAM and SOM calculation
TAM statistics: (relevant statistics are provided in the report)
Estimated number of SMEs worldwide
= ______ million
- Since SME’s has overwhelming percentage share of the total, we assumed that the __% share of companies with online presence are applicable to the total global figure.
Estimated total number of companies with online presence
= ________ million
The above _____ million companies are our total addressable market. These are the companies that possibly could utilize creative agencies to do the services for them. Small and medium companies normally lack people and want to focus on their company growth, thus, they are the one that normally outsource or use freelancers to do the job for them.
SAM statistics: (relevant statistics are provided in the report)
Estimated number of companies that are considered digital natives and digital challengers
= _____ million
The above ____ million is the serviceable available market. These are the SME companies that are adopting digitization and are already utilizing technology, thus, possibly ready and looking for platforms, jobs outsourcing, and hiring freelancers for their creative services jobs.
SOM statistics: (relevant statistics are provided in the report)
Global number of companies (digital natives and challenges) that outsource or hire freelancers to do jobs for their businesses
= Total companies that adopts digitalization * %
= _____ million
Total Addressable Market (TAM) and its total possible revenue
From above statistics and data, we have determined the total number of potential users of creative services.
| Potential users of creative services (TAM) | Total number globally |
| Estimated number of SME’s with online presence | ____ million |
To calculate potential TAM value at full market penetration, we will use benchmark pricing based on average spending. See below assumptions.
Estimated average outsourcing spending per company
= $______
- Accordingly, about % of the company’s outsourcing budget is for digital marketing or creative services related jobs.
Estimated average outsource spending for creative services per company
= $________
Possible revenue assuming 100% penetration of the TAM target audience
= $ billion
Serviceable Available Market (SAM) and the total possible revenue
From above statistics and data, we have determined the serviceable available market potential users of creative services.
| Potential users of creative services (SAM) | Total number globally |
| Estimated number of SME’s with online presence and are considered digital natives and digital challengers | _____ million |
To calculate potential SAM value at full market penetration, we will use the same assumptions as above.
Possible revenue assuming 100% penetration of the SAM target audience
= $ billion
Serviceable Obtainable Market (SOM) and the total possible revenue
From above statistics and data, we have determined the serviceable obtainable market potential users of creative services.
| Potential users of creative services (SOM) | Total number globally |
| Estimated number of SME’s with online presence and are considered digital natives and digital challengers that outsource or hire freelancers to do jobs for their businesses | ________ million |
To calculate potential SOM value at full market penetration, we will use the same assumptions as above.
Possible revenue assuming 100% penetration of the SOM target audience
= $ billion
TAM, SAM and SOM Summary
The above estimated values for TAM, SAM and SOM possible revenues is based on 100% market share at full market or full specified target audience penetration. It is important to note that there are competitors that will be offering the same products and services that will race for a higher market share.
Assuming that your company will aim for 2% market share of the SOM possible users, that translates to about $ billion revenue, which shows that the market is huge as long as the target market or the potential users are converted into actual customers. Actual revenues are fully dependent on the company’s business model, marketing strategies and initiatives on how to reach out to these possible users.
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