Dynamic Pricing Strategies
Elasticity is the Gateway to Profitability
By combining advertising and pricing elasticity while analyzing campaign data, you can develop unique forecasting models that not only accounts for historical performance but also integrates competitive dynamics and market changes.
New Ad Spend ($) (Auto-calculated if Monte Carlo selected): 0
📊 Sales Forecast Simulator
âž• Add New Data Row
🔹 Step 1: Enter Historical Data
🔹 Step 2: Adjust Inputs
🔹 Scenario Settings
Scenario Planning
Create forecasts based on different possible future scenarios, using both Auction Insights and historical data. Scenario-Based Forecasting: Develop what-if scenarios based on changes in competition, budget, and bidding strategies.
Sales & Advertising Dashboard
Step 1: Fetch Data
Step 6: Report Overall Effect
Scenario Planning
Create forecasts based on different possible future scenarios, using both Auction Insights and historical data. Scenario-Based Forecasting: Develop what-if scenarios based on changes in competition, budget, and bidding strategies.
Scenario 1: Combined Strategy (Elasticity Pricing + Ad Spend Increase) Competitor IS: 55% CPC: $2.50 CTR: 5% CVR: 2.3% (+15%) Revenue per Conversion: $45 Ad Spend: $12,500 🔹 Projected Impact: Optimized balance between price sensitivity and ad performance.
Scenario 2: Price Elasticity Strategy (Lower Price to Stimulate Demand) Competitor IS: 55% CPC: $2.50 CTR: 4.5% CVR: 2.2% (+10%) Revenue per Conversion: $45 (-10%) Ad Spend: $10,000 🔹 Projected Impact: Higher conversion rate offsets lower revenue per conversion.
Scenario 3: Increased Advertising Spend (Market Share Defense) Competitor IS: 55% CPC: $2.50 CTR: 5% (maintained through stronger ad strategy) CVR: 2% Revenue per Conversion: $50 Ad Spend: $12,500 (+25%) 🔹 Projected Impact: More conversions, potential stabilization of market share.
Scenario 4: Increased Competition (Higher CPC, Lower CTR) Competitor IS: 55% CPC: $2.50 (+25%) CTR: 4.5% (-10%) CVR: 1.8% (-10%) Revenue per Conversion: $50 Ad Spend: $10,000 🔹 Projected Impact: Lower efficiency, fewer conversions, higher cost per acquisition (CPA).
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