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Dynamic Pricing Across the Advertising Funnel

Aligning Price Strategy to Awareness, Consideration, and Conversion Stages

IC (12)

Most brands treat pricing and advertising as separate functions.

But traffic quality changes dramatically across the funnel — and your pricing strategy should change with it.

Conversion rates, purchase intent, and elasticity are different at each stage:

  • Awareness: Low intent, low conversion rate

  • Consideration: Moderate intent, competitive comparison

  • Conversion: High intent, high conversion rate

Because price directly influences conversion rate and revenue per click, dynamic pricing can be used to support performance at every stage of the funnel.

Below is how to configure Trellis pricing strategies to align with each advertising stage.

 

1. Awareness Stage

(Cold Traffic | Prospecting | Top-of-Funnel)

Business Use Case

You are investing in prospecting campaigns or top-of-funnel traffic where shoppers are unfamiliar with your brand and conversion rates are naturally lower.

Goal

Increase conversion rate from cold audiences to improve advertising efficiency and strengthen downstream retargeting pools.

Trellis Configuration

  • Min Price: Slightly below current price (~5%)

  • Max Price: Current price

  • Strategy: Boost Volume

Success Metric

  • Primary: Conversion Rate lift

  • Secondary: Sales Above Expected

Expected Result

The system strategically lowers price within guardrails to reduce friction for first-time buyers, improving conversion rate and maximizing the value of new traffic acquisition.

 

2. Consideration Stage

(Mid-Funnel | Competitive Traffic | Product Comparison)

Business Use Case

Shoppers are actively comparing alternatives. Traffic is warmer, but price sensitivity is higher due to competitive evaluation.

Goal

Optimize conversion rate while protecting margin during head-to-head competitive evaluation.

Trellis Configuration

  • Min Price: Slightly below current price

  • Max Price: Slightly above current price

  • Strategy: Balanced

Success Metric

  • Primary: Conversion Rate stability or lift

  • Secondary: Sales Above Expected

Expected Result

The system flexes price within a narrow band to maintain competitiveness without unnecessary margin sacrifice, improving efficiency in comparison-driven traffic.

 

3. Conversion Stage

(Retargeting | Branded Search | Bottom-of-Funnel)

Business Use Case

Traffic is high intent. Shoppers are returning, searching branded terms, or showing strong purchase signals. Conversion rates are significantly higher.

Goal

Maximize profitability from traffic that is already highly likely to convert.

Trellis Configuration

  • Min Price: Current price

  • Max Price: Provide upward flexibility

  • Strategy: Balanced

Success Metric

  • Primary: GCD (Gross Contribution Dollars)

  • Secondary: Revenue per click

Expected Result

The system increases price where elasticity allows, capturing incremental margin from high-intent traffic without materially impacting conversion performance.

 

Strategic Takeaway

Traffic quality is not static, and pricing shouldn’t be either.

  • In Awareness, price reduces friction.

  • In Consideration, price maintains competitiveness.

  • In Conversion, price maximizes profitability.

Dynamic pricing allows you to align price strategy with traffic intent, turning pricing into a full-funnel performance lever rather than a fixed constraint.