Determining your ad rates is a tricky business. There are so many factors to consider and there are very few rules. At certain times, decreasing your online advertising price will seem like a good idea. When should you move forward with a price reduction?
When You Want to Attract New Clients
Attracting new clients is one of the most common reasons for an online advertising price reduction. Coming up with 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 advertisers. When you consider such a campaign, make sure that everybody understands it is a limited time offer. Otherwise, you risk disappointing clients and losing some of the business partnerships you have just established.
When the Competition Introduces a Significant Price Reduction
You work in a niche that features numerous other players. The performance of your website is dependent on the performance of competing projects. When competitors decrease their online advertising prices, you may be forced to do the same. Even if you offer better service, you rely on a powerful ad server and your website has serious traffic, you will find it difficult to get new clients when you keep prices high. Each market has its peaks and slowdowns. When competition decreases prices, you will have to respond in a certain way. You will either have to reduce the ad rates, as well, or you will have to offer advertisers some exclusive service that they will be incapable of getting anywhere else.
Present It as an Opportunity
There is no need to feel negative about the price reduction. You should rather see it as a growth opportunity for your website. Introduce price reductions with confidence. Potential advertisers that feel 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 a nice opportunity that you are willing to offer to clients.
Remember: There are No Rules!
Are you looking for some guidelines that will help you determine your advertising rates? There is no such thing! It all depends on your business intuition. The fact that everybody else’s performance is poor does not necessarily mean you will have to decrease your online advertising rates. Instead, focus on the benefits of your website and the manner in which those will affect advertisers. 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 Reductions
Decreasing your advertising rates could be a wonderful opportunity or it could be related to the current performance of your website. When introducing such changes, you have to be careful. When rates decrease, clients expect them to remain low. Once you decide to increase your advertising rate in the future, you will have to face intense opposition. People will prefer the lower prices, unless you can justify such changes in a really solid way. Decreasing your online advertising rates can be a good move for your business. Take some time to assess the situation and to rationalize. Being confident in your decision will give you a chance to enjoy all of the benefits.
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