Skip to content
The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryRetail Media & CommerceDynamic Pricing

Retail Media & Commerce

Dynamic Pricing

Automatically adjusting prices in real time based on demand, competition, inventory, or customer segment.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Dynamic pricing is the practice of automatically adjusting prices in real time based on factors such as demand, competitor prices, inventory levels, or customer segment. It is common in travel, ride-hailing, and ecommerce. It can improve revenue and inventory turnover, but must be managed carefully to avoid perceptions of unfairness.