Digital advertising pricing strategy
CLIENT:
Global Online Real Estate Company
OBJECTIVE:

To identify opportunities to increase digital advertising revenue in a competitive market without losing market share.

APPROACH:

Mather completed an econometric model of price elasticity by advertiser segment using historical contract data.  Mather combined data on advertising contracts with information on the local real estate market, advertiser, sales channel, and product to estimate demand for the advertising inventory.  Once an understanding of price elasticity by customer segment was developed, Mather recommended pricing adjustments to increase revenue.

RESULT:

The pricing recommendations were implemented by the client, and they realized incremental revenue with minimal customer volume loss.

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