Dynamically Changing Price of Product Based on Search Ad

Jul 20, 2007 • 7:49 am | comments (0) by | Filed Under Pay Per Click Engines

A WebmasterWorld thread asks if anyone is doing any dynamic price changes based on their search ads.

For example, let's say you run two different ads, both pointing to the same product landing page. One ad might be targeting a more expensive set of keyword phrases while another ad might be targeting a less set of expensive keyword phrases.

Based on the ad, you can detect the referral and serve up different pricing and different content on the same product landing page.

If one ad costs more on a per click basis, you may want to shift that pricing up to cover the costs. If you did this in an extremely dynamic environment, you can determine the price of the click on each click and serve up a new price per click, based on a percentage of the price of that click.

For example, you know you can spend $1 per click for product A. If some keywords cost $2 per click, you may determine you need to increase the price of product A by 4%. Even better, you may even be able to decrease the price of your product for those ads that cost you less than what you can spend to make a profit.

Forum discussion at WebmasterWorld.

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