Flight Pitch Deck

Goals

To conduct an analysis of the TAM, SAM and SOM for Startups (US only) that will hire a marketing growth agency (NY-city based). The report will encompass small businesses as a basis for startup numbers.

Early Findings

  • As statistics for startups is related to small businesses, the numbers as of March 2020 for the Digital Advertising Agencies reports indicates the TAM size reached 16.0 billion with approximately 5500 businesses in the industry (revenue growth for the industry is expected to decrease in 2020 due to declines in corporate profit and advertising expenditure). All information is based
  • TAM average industry growth between 2015 and 2020 is at 13.1% indicating the strongest growth from the retail, financial services, automotive and telecommunication sectors. Product manufacturers are using direct-to-consumer methods to sell products online causing many retailers to have a demand for marketing agencies who provide growth marketing activities to compete, i.e. search engine optimization, content and social media marketing, affiliate marketing and more.
  • Trends (TAM) indicate more customers use of smartphones and tablets, many businesses have purchased digital advertising services to build brand awareness across multiple screens and platforms and generate website traffic.
  • Overall total addressable market share (TAM) is medium with top 3 marketing agencies (The Interpublic Group of Companies Inc., WPP PLC and Omnicom Group Inc.) accounting for 40% of the industry revenue growth- market size $345 billion with 400,126 businesses worldwide.
  • Startup statistics 2020: For the SAM, 66% of small businesses will outsource services to other small businesses. The 10 biggest industries by revenue in the U.S. (2020) in need of marketing services (SAM)- Retirement & Pensions Plans, Drug, Cosmetic & Toiletry Wholesaling, Health & Medical Insurance, Hospitals, Pharmaceuticals Wholesaling, Public Schools, New Car Dealers, Life Insurance & Annuities, Supermarkets & Grocery Stores, and Commercial Banking.
  • For the serviceable available market, In 2020, the total number of U.S. small businesses reached 31.7 million, making up nearly all (99.9 percent) US businesses, a 3.15% increase from the previous year and a growth of 7.09% over a three-year period from 2017 to 2020.
  • Using revenue data scenarios for U.S. small business revenue in 2020: small businesses with no employees, average annual revenue of $46,978. Small businesses with 10 to 19 employees averaged $2,164,000 in revenue, those with 20 to 99 employees averaged $7,124,000, and coming in on top are companies with 100 to 499 employees averaging $40,775,000 in revenue. The number of non employer firms making $1 million to $2.49 million in 2018 reached 35,584.
  • According to the Empire State Development 2019 Annual Report on the State of Small Businesses, the serviceable obtainable market (SOM) in New York city was at 610,765 firms with 98% market share- average monthly earnings at $7,214 for New York City small businesses or $86, 568 annual revenues.

Proposed next steps:

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