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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.
Recommended Citation
Zhang, Xu and Dou, Yifan, "Content Platform Management of Creator Advertising: A Multi-Method Study" (2022). ICIS 2022 Proceedings. 4.
https://aisel.aisnet.org/icis2022/sharing_econ/sharing_econ/4
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.
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