Total Addressable Market (TAM)

The total revenue opportunity available for a product or service if 100% market share were achieved.

Definition

Total Addressable Market (TAM) represents the maximum revenue opportunity if you captured every potential customer. It's calculated top-down (industry research) or bottom-up (# of potential customers × average revenue). TAM is often broken into SAM (Serviceable Addressable Market) and SOM (Serviceable Obtainable Market) for realistic targeting.

Why It Matters

TAM validates market opportunity and attracts investors. It also guides go-to-market strategy—you can't pursue your entire TAM, so you must prioritize segments. Understanding TAM helps set realistic goals and identify expansion opportunities.

Examples

TAM: All companies that could use visitor identification ($2B)
SAM: B2B companies in target regions ($500M)
SOM: Companies we can realistically win in year 1 ($50M)

How Bullseye Helps

Bullseye helps you understand which segments of your TAM are actively interested by showing visitor composition. See what percentage of visitors match your ICP versus adjacent segments. Real visitor data validates TAM assumptions.

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