How Search Data Can Inform Your Pricing Strategy is part of a series on using search data to inform 5 key areas of your marketing strategy. If you haven’t already, be sure to read previous posts on how SEM data can help you to build your strategy around Product, Competition and Branding.


easter baskets


This week, retailers are competing for your dollars on Easter baskets and presents. One key strategy  is to out-price the competition. So how does a retailer out-price the competition while maximizing profits? Sometimes offering a discount leads to volume increases that offset margin dips. Other times, it’s better to mention low prices instead of the percentage off.  But how can advertisers find out the best approach to pricing? Through SEM ad creative testing, advertisers can identify not only the most profitable price point, but also the best way to message pricing.


Identify the most profitable price point

It is cheap and easy to price test in SEM creative by launching hypothesis tests of identical ad copy and landing pages where the only variable is the price. In this way, you can identify the ideal price point where you generate the best possible balance of order volume and return on ad spend that optimizes to your goals and KPIs. For example, you might want to test a $15.99 price versus a $17.99 price.


Develop a variable pricing approach

If you are looking to test variable pricing, SEM creative testing can provide you with the data needed to craft your approach. Provided you have a large enough data sample, you can evaluate return on ad spend and revenue-per-impression within different segments of your campaign. Perhaps $17.99 works best on desktop devices in major cities where the user searched on a branded term, but $15.99 yields a better return on mobile users located near a competitors store who searched on a non-branded keyword. In this manner, you can begin to develop a variable pricing strategy that maps to actual performance metrics.

Optimize pricing verbiage

Once you have run iterative rounds of testing to determine the optimal price point, it is time to learn the best way to message that price point. On a $100 item, “save $20 dollars” and “20% off” amount to the same price. But customers may react differently to these two verbiages. Set up testing with identical price points and variant messaging to learn the best way to position prices and discounts.

Two final thoughts

To garner useful and actionable results that can be applied beyond individual ad groups and campaigns, it is important to design tests properly. Check out this Boost blog post for ideas on how to designing SEM creative tests to maximize both results and insights.

Finally, stay tuned for Boost’s upcoming white papers on Travel and Retail to learn how customer behavior around price messaging can vary by vertical.


About Boost Media

Boost Media increases advertiser profitability by using a combination of humans and a proprietary software platform to drive increased ad relevance at scale.

The Boost marketplace comprises over 1,000 expert copywriters and image optimizers who compete to provide a diverse array of perspectives. Boost’s proprietary software identifies opportunities for creative optimization and drives performance using a combination of workflow tools and algorithms. Headquartered in San Francisco, the Boost Media optimization platform provides fresh, performance-driven creative in 12 localized languages worldwide.