What are the pros and cons of offering discounts or incentives to ad buyers?

In my experience discounts on incentives can also help move product that is either stagnant or forced to carry but doesn’t sell, even if high quality etc. The discount or incentive can encourage someone to purchase something they normally wouldn’t or couldn’t afford before.

Advertising/Media can often suffer from a need to sell through inventory at a certain floor rate, but a mix of less popular inventory that can be hard to sell. Discounting can therefore help with 'late space' availability, or in selling a greater range of your media portfolio. Equally a discount with a limited time offer can hugely help to create urgency and manufacture a deadline for closing a sale, or in helping to sell higher volumes outside of any seasonality you typically see.

1. Pros of discounts or incentives: - Attract new customers: Discounts can entice new customers who are price-sensitive. - Increase sales: Incentives can motivate customers to make a purchase they might otherwise delay. - Clear inventory: Discounts help clear out old or excess inventory quickly. - Build customer loyalty: Repeat customers may be more likely to return if they feel they are getting a good deal. 2. Cons of discounts or incentives: - Lower profit margins: Discounts can eat into profits if not carefully managed. - Devalue the product: Constant discounts may devalue the perceived worth of the product. - Dependency: Customers might become dependent on discounts, reducing their willingness to pay full price.

Offering discounts or incentives boosts sales, attracts new customers, and encourages repeat purchases. It clears excess inventory and strengthens customer loyalty when used strategically. - Boosts sales quickly - Attracts new customers - Encourages repeat purchases - Clears excess inventory - Strengthens customer loyalty

I agree with the above as I have seen it countless times that too many incentives, or especially discounts can lead to people thinking the product or service is not good or not up to par. Even worse is the look of desperation for either the sales or the service to be taken advantage of.

Continual discounting can often erode the overall value of your media. Be careful to ensure your rate card doesn't become a fairy tale by setting value expectations amongst your clients that dilute it's credibility. Most good media buyers will be familiar with rates they've previously achieved and expect them to be honoured again, even if they were discounted through an initiative.

Offering discounts or incentives can attract ad buyers, but it also has drawbacks. These may include reduced profit margins, potential devaluation of the brand, and attracting price sensitive customers only. - Profit Margin Impact - Brand Devaluation - Price Sensitivity - Short Term Focus - Customer Expectations

You can maintain the value of your 'hero' products by holding their rates, and instead offer discount or 'added value' against additional products, or by extending the campaign duration. This can aid the perception that it's a gesture to aid a trial, or in recognition of a regular client, rather than a concession of reduced value in your media.

Try to only discount items that are maybe an addition or temporary product or service so as not to take away from existing services or products that are staples. Helps keep quality high and services standards at a premium. Use incentives to move unwanted or unneeded products or newer additions to services.

Offering discounts or incentives can attract ad buyers and boost sales, but they should be used strategically. Balance short term gains with long term brand value, ensuring discounts don’t devalue your product. Headlines: - Attract New Customers - Encourage Repeat Purchases - Avoid Brand Devaluation - Monitor Impact on Profitability - Set Clear Terms and Conditions

Discounts can aid in managing inventory and gathering customer data. Yet, caution is needed, as too many discounts may raise quality doubts, fostering fleeting loyalty. To wisely employ discounts, consider these tips: go for targeted discounts to certain customer groups, preserving brand value. Offer non-monetary incentives, like expedited delivery, for value addition sans profit erosion. Lastly, align discounts with sales seasons or buying cycles for maximum effect. These strategies ensure discounts work as assets, not liabilities.

Offering discounts or incentives can attract ad buyers and boost sales, but it's essential to weigh the long term effects on profit margins and brand perception. Here’s what else to consider - Impact on Profitability - Customer Loyalty Effects - Competitor Reactions - Brand Value Considerations - Incentive Structure Options