Yield Management in Advertising: What is it?
December 15, 2023
If you are someone who deals with digital advertising, then there are chances that you have heard about yield management. But if you aren’t, no worries! This blog post will help you understand what yield management is and what it can do for your business.
Yield management is the practice of selling or allocating media inventory to advertisers based on some structured pricing. This allows for ads placed at specific times or in certain locations to be sold at different prices, increasing the publisher’s revenue. Yield management came about as there was a need for a more systematic and efficient way to sell ads.
The great thing about this process is that it means publishers can get the best possible price for their ads. Advertisers can forecast with certainty what ad inventory they will have access to.
Modern businesses know that yield management is an important part of their revenue flow. Yield management advertising combines the benefits of yield management and advertising to help companies maximize their revenue.
Businesses using yield management advertising can effectively sell all available inventory while showcasing unique products to attract more potential customers. This strategy provides businesses with the opportunity of gaining repeat customers without requiring discounts on future orders.
The yield management system was created in the airline industry but has since been adopted by hotels, car rental companies, and other businesses. The yield management system helps businesses sell their inventory efficiently by analyzing rate components such as occupancy levels, seasonality, pricing policies, capacity constraints, and yield restrictions.
When yield management is tied with yield advertising, it can help increase the number of customers who know about your company’s unique products. Yield management advertising uses yield management to decide if and when a company should advertise to attract more customers. By using yield management systems, businesses can attract new customers without offering discounts or other incentives.