October 9, 2024
TL;DR: Brands rely on Digital Penetration to set investment levels, but Digital Share of Growth reveals a much larger impact from eCommerce.
2 minute read
Most brands incorporate Digital Penetration into their strategic investment plans, while ignoring ‘Digital Share of Growth’ (DSG).
Here’s the difference:
- Digital Penetration: Digital sales divided by total sales - $100 in total sales with $10 from digital amounts to 10% Digital Penetration.
- DSG: Digital dollar growth divided by total dollar growth - total sales of $150 this year is up from $100 last year, with $30 of the $50 in growth coming from digital, for a DSG of 60%.
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