Downloadable content here:
TAM SAM SOM Sources-Analysis 20 Mar 23.docx
TAM SAM SOM: Monet Money’s approach and data sources. 20 Mar 23
This note shows the sources for Monet’s market size estimates. In italics are extracts from the reports. See the spreadsheet TAM SAM SOM.xls also
METHODOLOGY
How we estimated the market size
Estimates of market size are notoriously hard to make and should be treated carefully when analysing the commercial opportunity. For example, we don’t think it follows that a tiny share of a huge market is an easy thing to get. Here’s our approach.
This is backed up by a recent report (April 2023) from Goldman Sachs Equity Research desk, who believe it to be a $250 TAM.
Goldman Sach Research Creator Economy Apr 23.pdf
TAM $269bn
We think that in aggregate the individually created digital content and digital labour platform market is very large. This, using a broad definition, is Monet’s market. Where large (mainly) companies purchase content, expertise, time, experience from small (mainly) corporate providers and individuals. Typically, the buyers and sellers are connected via digital platforms that arrange the price for the services, take care of the admin and the payments. They are often referred to as Digital Labour Platforms.
The market comprises:
| Branded Content | Large (mainly) companies hire influencers and other content providers/creators to publicise and promote their products. This is Monet’s GTM sector. | | --- | --- | | Affiliate Marketing | Large (mainly) companies pay commission to external websites / apps for traffic or sales generated from their referrals. Eg Uswitch | | Creator Monetisation Platforms | Platforms that host creators content and enable them to earn money usually via subscriptions and advertising. Eg YouTube | | Other Digital Labour Platforms | Digital Labour Platforms (“DLPs”) connect companies (mainly) that require services with providers, typically individuals or SMEs. Eg Upwork, Deepbench | | Skilled B2B Freelancer Economy | Where companies hire skilled freelancers to do work for them rather than hire full time staff. About 73% of work is on a project basis. Not all of this market is via on-line platforms. | | Modelling Agency Economy | Agencies represent models and similar talent for work on brand, fashion, and other commercial work. These agencies are commissioned by enterprises and brands. |
The problem that Monet solves is the delay in payment by the large company buyers for the services provided by the SME and individuals. All the segments described above have this issue to a greater or lesser extent.
We estimate that the market size is $293bn pa (value of services bought each year) and have haircut this by 20% to allow for the fact that Monet’s EarlyPay and other products will not be applicable to the whole market. The 20% is only an estimate.