Question
Some factors that could lead to changes in dynamic pricing rates include the size of the audience an advertiser wants to reach, the level of competition among advertisers, and the overall demand for advertising space. Changes in market conditions, such as economic fluctuations or changes in consumer behavior, can also affect dynamic pricing rates.
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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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