It’s prediction season, and our new byline on Martech Series explains how we believe data will drive change in the partnership and affiliate spaces in the next 12 months. Here is an excerpt:
As real-time data have become more and more common in e-commerce and performance marketing, we can expect more advertisers to leverage sales modeling and machine learning to maximize profit by constantly adjusting the mix of promoted goods based on item availability and existing stocks.
There’s nothing new about using discounts to push distressed inventory, but real-time data takes this concept to a whole other level, enabling brands to balance, margins, sell-through rates, and profitability constantly, at an item level.
For example, a retailer could compare daily estimates of sell-through for a specific item against current stocks and start making small pricing adjustments to address volume shortfalls.
Small adjustments throughout a selling season might drive the better average price per unit, instead of waiting until there’s a big problem that requires a 50% off discount. In this way, the merchant could sell more goods at a higher margin.
You can read the entire post here.
(Note, since this article was published we have changed our name from Performance Horizon to Partnerize. Check out our home page for more information.)