When should you reduce your advertising price and how?Determining a suitable rate to charge for advertising on your website can be tricky. There are so many factors to consider and there are very few rules. You do not want to limit your income and at the same time, you also do not want to lose customers because your pricing is too high. At certain times and with certain conditions, lowering your online advertising price might sound like a good idea. So, when is a good time to reduce your prices?
When You Want to Attract New ClientsAttracting new clients is one of the most common reasons for an online advertising price reduction. Launching a limited-time offer can be a wonderful way of reaching new prospects and increasing the popularity of your website or publication. This is one of the most basic strategies in terms of attracting new advertisers. When you begin such a campaign, make sure that it is very clear that it is a limited-time offer only. This way, potential advertisers will seize the opportunity before your prices go back to their regular level. At the same time, existing customers, which you have worked hard to obtain and maintain, will not feel disappointed since the offer is not easily comparable with what they currently have.
When the Competition Introduces a Significant Price ReductionYour business might operate in a sector that features many other competing players. The performance of your website is dependent on the performance of competing companies. When competitors decrease their online advertising prices, you may be forced to do the same. Even if you offer your advertisers better customer service, a more powerful ad server, and higher quality traffic, you may still find it difficult to get new clients and retain existing ones when your ad prices are perceived as being too expensive. Each market has its peaks and valleys. When your competition decreases their prices, you should respond with an action of your own. You can simply reduce your ad rates, or you can offer your advertisers some exclusive service that they cannot get anywhere else.
Present It as an OpportunityThe price reduction should not be perceived as something negative. You should rather see it as a growth opportunity for your website. Introduce your price reduction with confidence. A potential advertiser who thinks that you are experiencing some business troubles will probably try to take advantage of the situation. Stay in control and present the price reduction as a conscious decision on your behalf and as a nice opportunity that you are willing to offer to make your clients happy.
Remember: There are No Rules!As previously mentioned, there are no universal rules to help determine advertising prices for all websites. There are too many factors that can affect your pricing strategy. The fact that everybody else’s performance is poor does not necessarily mean that you will have to decrease your online advertising rates as well. Instead, focus on the benefits of your website and the manner in which those benefits improve the advertiser's return-on-investment. Trust your intuition, even if common market logic tells you to do the exact opposite. Sometimes, being brave and breaking the rules will deliver the best results for your company.
Be Careful with Price ReductionsDecreasing your advertising rates could be received as a wonderful opportunity by new clients or it could imply a negative performance of your business. Therefore, you have to be careful when introducing such changes. When rates decrease, clients expect them to remain low. Once you decide to increase your advertising rate in the future, you will likely face intense opposition and risk upsetting your clients. People will prefer the lower prices, unless you can justify such changes in a really solid way.
In summary, decreasing your online advertising rates can be a good move for your business if done correctly and at the right moment. Take some time to assess the situation and to rationalize. Being confident in your decision will give you a chance to enjoy all of its benefits.
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