Loading...

Media is loading
 

Paper Number

1677

Paper Type

Short

Description

The rise of the content platforms has led to the new opportunity of advertising through the content creators, which, however, causes the strategy tradeoff for the platform owner. On the one hand, allowing creators to embed sponsored ads (CADS) may undermine the platform’s own ad sales (PADS); On the other hand, the platform might benefit from CADS through commissions. We develop a game-theoretical model to examine this tradeoff. We find that allowing CADS might be optimal for the platform, depending on the qualities of PADS and CADS. In addition, we show that the strategic relationship between PADS and CADS can be substitutable, complementary, or independent from each other, which is endogenously determined by the platform’s profit-maximizing decisions. We then conduct a case study based on the data collected from Bilibili to verify our analytical findings.

Comments

08-Sharing

Share

COinS
 
Dec 12th, 12:00 AM

Content Platform Management of Creator Advertising: A Multi-Method Study

The rise of the content platforms has led to the new opportunity of advertising through the content creators, which, however, causes the strategy tradeoff for the platform owner. On the one hand, allowing creators to embed sponsored ads (CADS) may undermine the platform’s own ad sales (PADS); On the other hand, the platform might benefit from CADS through commissions. We develop a game-theoretical model to examine this tradeoff. We find that allowing CADS might be optimal for the platform, depending on the qualities of PADS and CADS. In addition, we show that the strategic relationship between PADS and CADS can be substitutable, complementary, or independent from each other, which is endogenously determined by the platform’s profit-maximizing decisions. We then conduct a case study based on the data collected from Bilibili to verify our analytical findings.

When commenting on articles, please be friendly, welcoming, respectful and abide by the AIS eLibrary Discussion Thread Code of Conduct posted here.