Dynamic Pricing: A New Commerce Media Feature to Boost Your Investment

The last year has shown dramatic growth in the commerce media space, and projections show that 2023 will continue that trend. In our decade of experience helping publishers join the realm of online advertising, we often hear concerns about making sure the ads business is additive to the core experience. New and existing publishers want to know that every piece of ad inventory is priced correctly to drive revenue growth. With Koddi’s new Dynamic Pricing feature, publishers will have more control than ever to ensure that’s the case.


What is it and how does it work?

Dynamic Pricing empowers Koddi’s clients by minimizing the risk and technical challenge of building a successful commerce media program that is balanced with ongoing organic site optimization. Commerce media publishers using Koddi Ads can leverage Dynamic Pricing through a simple update to their existing API integration and see an improvement in yield immediately.

Dynamic Pricing can be controlled on a per-auction basis through two methods:

  • Publisher Defined Price Floor: As a publisher, you know best how to optimize your revenue model. You can run real-time sciences to determine the price floor for every individual call and pass that information to Koddi. This is best for integrations where there is currently –or there is an aspiration for– a data science-driven model to maximize onsite revenue.
  • Segmented Price Floor Setting: For experimentation, Koddi can configure the price floor to change based on any segment provided within the Winning Ads call. This could be by a single segment (Page, for example) or by a combination of segments, such as by Page and User Country. This is best for initial testing and simple models. This is also a good interim step for more advanced integrations that may take time to prioritize and develop.

If you’re not ready to jump in quite yet, don’t worry. We’ll always default to a program-specified value to ensure your inventory gets the value it deserves.


What is the benefit?

With Koddi’s new Dynamic Pricing feature, publishers are able to price media inventory based on their own science and intelligence in addition to Koddi’s own signals –pricing for a specific user, session, search, product, or any combination in a privacy-first environment– all in real time. 

Commerce media publishers can use Dynamic Pricing to better optimize their user experience and overall site yields across their digital marketplaces by controlling the ads implementation. During six months of beta testing, Dynamic Pricing delivered yield increases of up to 10% and, as such, is now available for all Koddi Ads clients.


How do I get started?

Getting started is simple. Here’s how you can harness Dynamic Pricing for your business:

    • Familiarize yourself with the functionality via our implementation guide here.
    • Talk to your Programs team to align on a Dynamic Pricing strategy.
    • Work with your onsite teams to optimize the winning ads calls, as outlined here.


For more details, check out the press release or contact Koddi today.