Comments on: Yield Management: What Advertisers Can Learn From the Airlines http://blog.nielsen.com/nielsenwire/online_mobile/yield-management-what-advertisers-can-learn-from-the-airlines/ Consumer Insights, News, Research & Reports Sun, 09 Jan 2011 14:10:54 -0400 http://wordpress.org/?v=2.8.5 hourly 1 By: Ozgur http://blog.nielsen.com/nielsenwire/online_mobile/yield-management-what-advertisers-can-learn-from-the-airlines/comment-page-1/#comment-18113 Ozgur Thu, 19 Nov 2009 15:31:55 +0000 http://blog.nielsen.com/nielsenwire/?p=17703#comment-18113 the arguement is seriously flawed as the author assumes the advertisers behave similar to "individual" airline passangers who are doomed to get premium prices as long as they remain single, one time and ad hoc, purchasers. nevertheless, advertisers do not buy ad space at the very last minute where yield management shines. They do it in advance, in a very planned and disciplined manner. Just like tour operators, who buy from airlines in advance and at a very deep discounts, advertisers do indeed get the best deal out of tv channels competing for the same advertising money. yield management can shave another 5% margin from me if I wanna buy a ticket but do you think yield management can skim an extra 5% margin from tour operators? the arguement is seriously flawed as the author assumes the advertisers behave similar to “individual” airline passangers who are doomed to get premium prices as long as they remain single, one time and ad hoc, purchasers.

nevertheless, advertisers do not buy ad space at the very last minute where yield management shines. They do it in advance, in a very planned and disciplined manner. Just like tour operators, who buy from airlines in advance and at a very deep discounts, advertisers do indeed get the best deal out of tv channels competing for the same advertising money.

yield management can shave another 5% margin from me if I wanna buy a ticket but do you think yield management can skim an extra 5% margin from tour operators?

]]> By: John http://blog.nielsen.com/nielsenwire/online_mobile/yield-management-what-advertisers-can-learn-from-the-airlines/comment-page-1/#comment-17954 John Fri, 13 Nov 2009 22:31:28 +0000 http://blog.nielsen.com/nielsenwire/?p=17703#comment-17954 Learn from the airlines? Really? That's the first time I've ever seen those words in the same sentence. Yield management brings plenty of added costs in people and personnel. It also prevents transparency as you are forced to rely on what the computer says rather than put pencil to paper to come up with conclusions. Learn from the airlines? Really? That’s the first time I’ve ever seen those words in the same sentence.

Yield management brings plenty of added costs in people and personnel. It also prevents transparency as you are forced to rely on what the computer says rather than put pencil to paper to come up with conclusions.

]]> By: Bauer http://blog.nielsen.com/nielsenwire/online_mobile/yield-management-what-advertisers-can-learn-from-the-airlines/comment-page-1/#comment-17938 Bauer Fri, 13 Nov 2009 14:15:54 +0000 http://blog.nielsen.com/nielsenwire/?p=17703#comment-17938 Much easier said than done, but this is the Holy Grail of advertising isn't it? I don't necessarily agree with the title of the article which suggests that airlines have "mastered" provisioning the right price for the right customer yada yada. A few like Southwest may be doing this to some degree, although many would argue that their success was more rooted in smart negotiation/timing on signing fuel contracts. Much easier said than done, but this is the Holy Grail of advertising isn’t it? I don’t necessarily agree with the title of the article which suggests that airlines have “mastered” provisioning the right price for the right customer yada yada. A few like Southwest may be doing this to some degree, although many would argue that their success was more rooted in smart negotiation/timing on signing fuel contracts.

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