{"id":13286,"date":"2018-01-05T11:27:58","date_gmt":"2018-01-05T16:27:58","guid":{"rendered":"http:\/\/blog.clickbooth.com\/?p=13286"},"modified":"2026-04-15T18:04:55","modified_gmt":"2026-04-15T22:04:55","slug":"game-changer-clickbooth-launches-consumer-demographic-based-pricing-modifiers","status":"publish","type":"post","link":"https:\/\/www.performcb.com\/content-hub\/game-changer-clickbooth-launches-consumer-demographic-based-pricing-modifiers\/","title":{"rendered":"Game Changer: Perform[cb] Launches Consumer Demographic Based Pricing Modifiers"},"content":{"rendered":"

Online performance marketing, as a vehicle for achieving unparalleled company growth and consumer reach, challenges businesses to rethink and redefine \u201cperformance\u201d. \u00a0Advertisers, in our \u201cbig data\u201d world, continually leverage performance-based data decisioning, but there\u2019s an underlying value-alignment issue because pricing strategies have not kept pace with the times. \u00a0In fact, your current pricing strategy, the exact one you have been taught to employ, is the equivalent of a wild goose chase. \u00a0We\u2019ve listened and learned from our clients, and as a result, we\u2019re excited to introduce a new level of performance pricing – consumer demographic based pricing.<\/span><\/p>\n

Why did Clickbooth<\/a> develop an alternative pricing method for advertisers?<\/b><\/p>\n

Traffic types within our industry are constantly evolving. \u00a0When determining where and how to acquire new customers, advertisers must understand the pros and cons associated with each traffic type. \u00a0Facebook traffic, for example, can produce widely varying results. \u00a0With proper targeting, it can lead to considerable volume and quality. \u00a0Conversely, with misaligned targeting, Facebook traffic can lead to poorly-performing customer lifetime values. \u00a0With this in mind, right-pricing a \u201cFacebook\u201d affiliate or link only works when that affiliate\u2019s targeting stays consistent. \u00a0In practice, when setting an affiliate-specific payout for an affiliate whose media buying strategies and placements change, you\u2019re always chasing a new acquisition value that corresponds to that affiliate\u2019s current traffic targeting, or worse, in markets where key performance indicators are delayed, you\u2019re always chasing a new acquisition value that corresponds to that affiliate\u2019s previous traffic targeting!<\/span><\/p>\n

A similar pricing scenario arises with Native traffic sources. \u00a0The value of a customer likely varies dramatically when comparing an acquisition arising from an older news site versus one from a viral site chock-full of endless slideshows. \u00a0<\/span><\/p>\n

Same advertiser. \u00a0Same affiliate. \u00a0Same traffic source. \u00a0Different outcome.<\/span><\/p>\n

Our clients are some of the smartest business owners on the planet and they\u2019ve long recognized this pricing dilemma. \u00a0In some cases, advertisers have tried to remedy the inefficiency by providing top-performing targeting \u201crecommendations\u201d for affiliates<\/a>. \u00a0Rather than relying on recommendations, we\u2019re providing a better, more innovative solution. \u00a0<\/span>Clickbooth advertisers now have the ability to modify payouts based on consumer demographics.<\/span><\/i> \u00a0If your customer lifetime values are influenced by age, gender, or income level, your results are positioned to take a giant leap forward. \u00a0If you\u2019re unsure whether customer lifetime values are influenced by these factors, don\u2019t worry, we\u2019ve also got you covered. \u00a0By leveraging Clickbooth\u2019s revolutionary bid modifier feature, you can now build the data set necessary to establish a new standard of performance pricing strategies. <\/span><\/p>\n

To leverage demographic-based pricing modifiers, do I need to ask my customers invasive questions about their age, gender, and income?<\/b><\/p>\n

No. \u00a0As a marketer, establishing smarter pricing mechanisms shouldn\u2019t come at the expense of offending your prospective customers. \u00a0By leveraging data you\u2019re already collecting, Clickbooth\u2019s innovative data integration solution helps you learn previously unavailable information about your customers. \u00a0Same consumer experience. \u00a0More valuable insight.<\/span><\/p>\n

Does demographic pricing take the place of traffic type or affiliate-focused pricing?<\/b><\/p>\n

Demographic-based bid modifiers enhance, rather than replace, your existing pricing strategy. \u00a0For example, we have many advertisers whose baseline offer payouts for email, display, social, and survey all vary. \u00a0For some advertisers, when taking into account varying consumer experiences through each traffic channel, those baselines<\/span> should<\/span><\/i> vary. \u00a0Additionally, within a single traffic type, an advertiser may utilize link-specific pricing strategies. \u00a0For example, if the value or volume delivered by Facebook link1234 exceeds the value or volume of \u201cnormal\u201d Facebook traffic, advertisers, for years, have made one-off adjustments to further incentivize scale from link1234. \u00a0All of this still applies. Now, however, advertisers can modify their approach with an enhanced understanding of consumer profiles. \u00a0Let\u2019s walk through a basic example.<\/span><\/p>\n

An advertiser, ClickyCandy, sells hard candies. \u00a0ClickyCandy\u2019s data analysis uncovered some meaningful profile discoveries. \u00a0For ClickyCandy\u2019s product, the lifetime value of their customer increases as their customer meets specific age brackets. \u00a0To an even more meaningful degree, the lifetime value of a customer increases as the consumer income level increases. \u00a0ClickyCandy, to improve pricing\/value alignment, created a modified payout structure that favors older, wealthier customer acquisitions. \u00a0\u00a0\u00a0<\/span><\/p>\n

Below are ClickyCandy\u2019s old and new email pricing strategies:<\/span><\/p>\n

OLD<\/b><\/p>\n

Email traffic: Baseline $12 CPA<\/span><\/p>\n

NEW<\/b><\/p>\n

Email traffic: \u00a0Baseline CPA: $10.50<\/span><\/p>\n

Bid Modifiers<\/b>:<\/span><\/p>\n

Age<\/b>: \u00a00-24 years old = no modifier, 25-44 years old = +$0.45, 45+ = +$0.55<\/span><\/p>\n

Gender<\/b>: \u00a0For ClickyCandy, both Genders performs equally. \u00a0No modifier applied<\/span><\/p>\n

Income<\/b>: $0 – $15,000 = no modifier increase, $15,001 – $45,000 = +$0.90, $45,001 – $75,000 = + $1.75, $75,001+ = +$2.25<\/span><\/p>\n

EXAMPLE A:<\/b><\/p>\n

Consumer A purchases ClickyCandy. \u00a0Consumer A is 23 years old, earning $25K annually.<\/span><\/p>\n

Old Cost of acquisition to ClickyCandy: \u00a0<\/span>$12<\/span><\/p>\n

New Cost of acquisition to ClickyCandy: $10.50 (offer level payout) + $0 (<25 age modifier) + $0.90 ($15,001 – $45,000 income modifier) = <\/span>$11.40<\/span><\/p>\n

EXAMPLE B:<\/b><\/p>\n

Consumer B purchases ClickyCandy. \u00a0Consumer B is 40 years old, earning $90K annually.<\/span><\/p>\n

Old Cost of acquisition to ClickyCandy: <\/span>$12 <\/span><\/p>\n

New Cost of acquisition to ClickyCandy: $10.50 (Offer level payout) + $0.45 (25-44 years old modifier) + $2.25 ($75,001+ modifier) = <\/span>$13.20 <\/span><\/p>\n

Consumer A carries a lower value than a \u201cstandard\u201d customer for ClickyCandy. As a result, ClickyCandy pays less for a profile that matches that of consumer A. \u00a0Alternatively, ClickyCandy places increased value on a profile that matches Consumer B. \u00a0As a result, through ClickyCandy\u2019s strategic bid modifiers, ClickyCandy increases their acquisition cost for Consumer B. \u00a0After all, Consumer B is a very desirable customer for the ClickyCandy business. \u00a0ClickyCandy supports a higher payout for that customer because they\u2019ll return an increased lifetime value.<\/span><\/p>\n

Who benefits from leveraging demographic-based pricing strategies?<\/b><\/p>\n

Advertisers who understand correlations between changes in consumer demographics and customer lifetime values can benefit from using demographic-based bid modifiers today. \u00a0Fortunately, advertisers who want to leverage demographic-based pricing but don\u2019t have the data set to make informed pricing decisions can also benefit today. \u00a0Rather than adjusting modifier pricing immediately, advertisers can enable the bid modifier feature and begin building a data set for future pricing strategies. \u00a0Knowledge is power and the learning starts today.<\/span><\/p>\n

Can\u2019t advertisers just set up a traditional revshare campaign?<\/b><\/p>\n

Yes, but RevShare models don\u2019t work for everyone. \u00a0After all, many advertisers lack the technical backend to facilitate the necessary value passing. \u00a0Additionally, many advertisers acquire customers without capturing the information needed to make demographic-based decisioning. \u00a0As a result, if demographics are meaningful to your CLV and your capabilities are limited because you either a) lack the technical capabilities to operate a traditional revshare model or b) need to obtain profiling data without directly asking your consumers for the data, you\u2019re positioned to improve your acquisition strategies by accessing Clickbooth\u2019s demographic-based bid modifier feature.<\/span><\/p>\n

How do I get started?<\/b><\/p>\n

Contact<\/a> a member of the Clickbooth team to learn how you can get started today. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

What\u2019s next?<\/b><\/p>\n

Remember, your hurdles, successes, and goals help create our future products. \u00a0Our proprietary platform was designed with invaluable input from client thought-leaders. \u00a0The release of demographic-based bid modifiers addresses an inefficiency in the market and drives performance forward. \u00a0Let\u2019s continue reshaping performance marketing and setting a new standard of excellence in 2018. \u00a0As always, we look forward to THINKING BIGGER together! \u00a0<\/span><\/p>\n\n\n

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