MAHA Global and IPR: Do Actions Speak Louder Than Words?
New Models for Dynamic Pricing and Products - Séverine Lago
1. New dynamic pricing and offering models
A practical approach and convincing
recommendations
INMA - Outlook 2009: European Conference
Dr. Séverine Lago | Vienna | 02.10.08
2. Agenda
New models for dynamic pricing and products
1. Dynamic pricing
1.1 Successful innovative project
2. Segmenting and clustering
3. Tests in the market
3.1 Tests overview
3.2 Tests results
3.2 Real success stories
3.3 Know-how
3.4 Dynamic Pricing platform
4. Next steps and timeline
INMA - Dynamic Pricing | 02.10.08 | 2
3. Successful innovative project
Mission:
The initial mission of this project is to develop new offering and pricing concepts for
commercial print advertising in order to reactivate the press market, taking into account
all different market players but also the tends in media advertising.
Final objectives:
- Increase of commercial turnover
- Create a more dynamic image of press advertising
- Determine which concept/offer fits which market needs (according to each publisher's
situation)
INMA - Dynamic Pricing | 02.10.08 | 3
6. Tests overview - Januar/June 2008
Market
Level of Dynamism of the offers
Switzerland
Publishers premium
VIP
10 partners 0%
14% basic
26%
Media
25 newspapers + other media
(Internet, Cinema, Flyers, etc.) top
25%
Offers
33 Offers
82% Local/Regional medium
61% Level Basic/Medium dynamic 35%
INMA - Dynamic Pricing | 02.10.08 | 6
7. Tests overview - Januar/June 2008
30
25 • 6 offers in test between
20 January and June 2008
15
10 • 27 offers planed and tested
5 for the whole year 2008
0
1st
sem. 08
year 2008 summer autumn open for the
future
=> 33 offers for the first
semester 2008
• 8 offers launched for the
result analysis
summer 2008
• Already 14 offers planned to
be launched in September
• 2 offers still to be developed
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9. Tests results - Januar/June 2008
Qualitative results Feedbacks on the offers
The market (clients and agencies) How did clients like the offers?
73% of the clients:
offers good and very good
not
attractive
same number of clients
interested/not interested to the offers 8%
Very good
medium
interested clients: 28%
attraction and quality of the offers 19%
(53%) (and not the price itself!)
non interested clients:
offers don't go toward the same direction
Good
than their advertising strategy
45%
INMA - Dynamic Pricing | 02.10.08 | 9
10. Tests results - Januar/June 2008
Qualitative results
The publishers
Jacques Matthey, Directeur général adjoint de la SNP, 15.07.2008
« Pour L’Express et L’Impartial, le projet Dynamic Pricing a représenté
une excellent opportunité d’animation du marché publicitaire. Alors que notre
marketing tarifaire est souvent perçu comme rigide par les annonceurs, nous
avons ainsi pu créer l’événement et nous profiler de manière dynamique et
positive. Une première expérience concluante, tant sur le plan commercial
qu’en terme d’image. Un levier à n’utiliser toutefois qu’avec précaution et
parcimonie, afin de garder un aspect événementiel ».
Christine Reinhard, Verlag Aarau, 04.07.08:
quot;Es ist immer gut, aus Erfahrungen, die andere gemacht haben, zu
lernen. So konnten wir im Rahmen des Projektes einige interessante
Preisansätze für die AZ diskutieren und auch ausprobieren. Am Anfang
solcher Massnahmenpakete sollte aber immer die fundierte Analyse aller
quantitativen und qualitativen Aspekte der Kunden und der Märkte stehen.
Meine Erkenntnisse daraus: Hier haben wir grossen Nachholbedarf.quot;
INMA - Dynamic Pricing | 02.10.08 | 10
11. Tests results - Januar/June 2008
Quantitative results
Turnover of several six digits each month (in CHF)
Turnover development is 1/5 better with DP clients than with average
Many clients
14% of the DP clients are newly acquired clients
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12. Tests results - Januar/June 2008
Quantitative results Performance of the offers
Editors' and Publicitas' analysis
Almost the half of the tests achieved
good results
Failure
Offers: last minute, packages, auctions, 27%
offers including the temporal factors, High
clubs, bonus offers 43%
Some offers need to be deepened,
adapted - ex. time of booking Low
18% Medium
Some other didn't lead to any good 12%
commercial response - ex. stand by
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19. Real success stories
Group 5: Customer loyalty National club
www.roc.ch
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20. Accumulated Know-how
Report
130 pages of information
Why are these concepts working?
Why aren't other concepts working?
Matrix
Which are the publisher needs?
Which expectations for the market?
So, which dynamic solution to offer?
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