How does dynamic pricing affect the market share of social networks?

Dynamic pricing can significantly affect the market share of social networks. It allows social networks to charge advertisers different rates based on the size of the audience they want to reach. This creates a competitive environment where advertisers compete for the best prices, potentially attracting more advertisers to the platform. As a result, social networks that effectively implement dynamic pricing can increase their market share by attracting a larger number of advertisers.

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While many people know Facebook and TikTok as social media networks, they are actually both B2B businesses with advertisers as their main customer. Facebook, Google, TikTok, and many other social networks that incorporate an ad revenue model use a method known as dynamic pricing to charge customers different rates depending on how large of an audience they want to reach. These advertisers then compete with other sellers for the best prices.

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Sales Strategies Toolkit

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