Optimising advertising pricing strategy
We worked closely with one of Australia’s leading Telecommunications firms to help optimise the pricing strategy of their online classified advertising business.
The business wished to improve revenue by reviewing their current outdated pricing strategy by identifying ‘add on’ features they could offer to customers purchasing advertisements.
Our solution involved analysing the firm’s historical data to better understand customer purchasing behaviours across different ad categories using machine learning techniques. We then provided consulting services which included designing and implementing a price test framework based on insights derived from purchasing behaviour analysis and designed and implemented a unique framework for monitoring reactions to price testing.
After analysing the price testing results we provided recommendations for ‘add on’ features for the different ad categories available for purchase.
The business impact
Upon project completion, the company experienced an increase of more than 12% in revenue per advertisement as well as an increase in the volume of their total ad sales.