Different types of demand require different pricing strategies. Inelastic demand refers to a situation where a change in price has a relatively small impact on the quantity of a product or service demanded by buyers. In other words, buyers aren’t price sensitive.

Supply and demand is a fundamental concept in economics, which describes the relationship between the availability of a product or service and its demand, and is a core concept and philosophy in what we do at ShareBuilders.

Out-of-Home (OOH) advertising has come a long way since its inception. Years ago, static, paper-backed, or permed-painted billboards were the norm. Billboards were not sexy or fancy, but they were an effective medium to communicate branding, action, or direction to generate consumer response. Today, the industry is experiencing a period of rapid change and innovation. With the rise of digital technologies, advertisers are able to reach customers in new and innovative ways, while at the same time maintaining the effectiveness of traditional OOH advertising.

As we shared in last month’s blog, when prices fall, demand generally increases. When a station uses the strategy of “pricing for share” it involves lowering the price in an effort to make the station’s inventory more attractive to buyers, thus encouraging them to buy more. Having one advertiser “buy more inventory” might be good in a specific instance, but if this strategy is utilized universally with every advertiser, it can lead to problems. Here are a few points to consider:

Pricing VS. Forecasting