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