Every face, every week, has to find its price. Soon, every hour.
Paris has a new landmark. It runs underground, it never sleeps, and Mediatransports has just won the right to sell it. Alexandre Lhuissier, who runs yield management at Mediatransports, explains how he prices every face of the Paris Metro network today in out-of-home (OOH) advertising, and what changes when digital out-of-home (DOOH) brings pricing down to the hour.
What you’ll hear
- Why the last minute can be an opportunity rather than a discount
- Which products should never be broken up, and why
- How to recover unsold inventory with dynamic pricing, without giving value away
- How to explain a price to a buyer, and make it stick
Why it’s worth your time
Every media owner sells a fixed capacity. Yield management, also called revenue management, is how that fixed capacity becomes variable revenue, without new screens or new investment. Few teams run OOH and DOOH revenue management at the scale of the Paris Metro: this is a rare look at how it works day to day.
Yield management in OOH and DOOH: quick answers
What is yield management in out-of-home advertising?
Yield management is the practice of setting the price of each advertising face, period by period, according to demand, so that a fixed inventory generates the highest possible revenue. It is how out-of-home media owners turn a limited number of faces into more sales without adding capacity.
Is yield management the same as revenue management?
In OOH the two terms are used almost interchangeably. Both aim to maximise revenue from a fixed inventory by selling each face at the right price, at the right moment, to the right buyer.
What changes with DOOH?
Digital screens can be sold by the hour or by audience, so pricing moves from a weekly rhythm to a near real-time one. Yield management then becomes a daily discipline for DOOH media owners. Learn more about yield management for media owners.
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Thanks, The Mereo Team