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TAM (Total Adressable Market)
Definition
The total revenue opportunity available if a product or service captured 100% of its market (Total Addressable Market, TAM). (TAM, Total Adressable Market)
How It's Calculated
Number of potential customers × Average spend
Example
A snack brand estimates its Total Addressable Market (TAM) at $2 billion based on U.S. households that buy salty snacks.
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