Adtech/Martech Pricing: Adapting to the AI Everywhere Era

This IDC Market Perspective dives deep into the rapidly shifting landscape of pricing for AI-powered promotional technologies, urging a bold departure from outdated models to embrace value-based pricing. As AI revolutionizes customer experiences, the old ways of pricing - based on simple inputs and tactical measures - are no longer enough. AI's unparalleled ability to automate processes and create hyperpersonalized experiences demands a fresh approach that aligns pricing with the true value delivered. With enterprise-grade AI applications carrying substantial costs, the time has come for vendors to adopt outcome-driven pricing models that focus on results and not just features. This document explores various pricing structures such as freemium, subscription, and consumption-based models, but underscores the challenge of capturing the full, dynamic value of AI. The message is clear: vendors must align costs with real customer outcomes, foster continuous innovation, and prioritize customer satisfaction. To thrive in this new AI-powered market, vendors are encouraged to adopt value-oriented pricing, engage a broad spectrum of customers, and offer flexible, transparent pricing options that pave the way for sustained, long-term success."AI's transformative power demands a shift from traditional pricing to value-based models, aligning costs with customer outcomes and driving innovation in martech and adtech." - Roger Beharry Lall, research director, Advertising Technologies and SMB Marketing Applications