On this episode of Beyond Impressions, Marketron sales engineer Jeanne Selvage sat down with Adam Lang, a media industry veteran and expert, to discuss yield management and dynamic pricing. The discussion included several key points around the urgency of adopting the tactic in what looks to be a retracting or flat year for broadcast ad revenue.
First, Selvage and Lang discussed the uncertainty of the year ahead. “Spending could be flat or decrease, and it’s unlikely to be an easy year. In my experience, yield management works in any market,” Lang said.
Economic concerns, dollars moving to digital, and the lack of an election-year bump will all collide in the 2023 market. So, how will broadcasters meet budget? “Raising revenue is always difficult, but using data to your advantage works,” Lang noted.
Lang then explained the key difference between yield management and dynamic pricing. While often used interchangeably, dynamic pricing is actually a subset of yield management. “Yield management is the commercial trading framework, and dynamic pricing is the live arena, driven by real-time supply and demand,” he conveyed.
Access to real-time data can be a challenge for broadcasters. It can be an overwhelming initiative with barriers, which Lang described as “poor access and availability.” Most of these issues originated from old traffic systems that are anything but user-friendly to sales professionals. To operate in the live zone of dynamic pricing, companies must use technology that removes barriers.
Lang and Selvage further discussed how dynamic pricing automation works and the key benefits for media companies that use it.
Listen to the interview to hear more from the experts.