[1] Yan Lei, Li Peipei, Mei Shue, et al. Effect of advertising targeting fit and consumer privacy protectionon the profits of media platforms [J]. Journal of Southeast University (English Edition), 2023, 39 (2): 194-203. [doi:10.3969/j.issn.1003-7985.2023.02.011]

Copy

Effect of advertising targeting fit and consumer privacy protectionon the profits of media platforms()

广告定向契合度和消费者隐私保护对媒体平台收益的影响

Share：

Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:

39

Issue:

2023 2

Page:

194-203

Research Field:

Economy and Management

Publishing date:

2023-06-20

Info

Title:

Effect of advertising targeting fit and consumer privacy protectionon the profits of media platforms

广告定向契合度和消费者隐私保护对媒体平台收益的影响

Author(s):

Yan Lei¹;  2;  Li Peipei¹;  Mei Shu’e¹;  Yan Han²

¹School of Economics and Management, Southeast University, Nanjing 211189, China
²School of Mathematics and Statistics, Pingdingshan University, Pingdingshan 467000, China

严磊¹;  2;  李培培¹;  梅姝娥¹;  闫涵²

¹东南大学经济管理学院, 南京 211189; ²平顶山学院数学与统计学院, 平顶山 467000

Keywords:

advertising targeting fit;  consumer privacy protection;  profits of media platform;  two-sided market

广告定向契合度;  消费者隐私保护;  媒体平台收益;  双边市场

PACS:

F062

DOI:

10.3969/j.issn.1003-7985.2023.02.011

Abstract:

A game model is proposed to examine the effects of advertising targeting fit and consumer privacy protection on media platforms’ price strategies and profits, as well as advertisers’ advertising strategies in monopoly and competition environments based on the two-sided market theory, providing theoretical references for media platforms and advertising operators to make correct management decisions. The results show that the equilibrium advertising price of a media platform is independent of advertising targeting fit and the degree of consumer privacy protection in a monopoly environment. While in a competition situation, when advertisers are single-homing, advertising price and profits at equilibrium on the media platform will decrease with the increase in advertising targeting fit, and the influence of consumer privacy protection on the advertising volume of the media platform at equilibrium will depend on the contrast of advertising targeting fit between the media platform and its competitor. When advertisers are multi-homing, the advertisement price, advertising, and profits of competition on the media platform at equilibrium are proportional to advertising targeting fit and inversely propor-tional to its competitor’s advertising targeting fit. The media platform should consider its advertising targeting fit and other factors comprehensively when the enterprise is involved in market competition, meanwhile making a careful choice about price strategy at different stages of its development.

基于双边市场理论模型和博弈分析方法, 分析了垄断、竞争2种环境下广告定向契合度和消费者隐私信息保护对媒体平台价格策略、均衡利润和广告商广告策略的影响, 以期为媒体平台和广告运营商做出正确的管理决策提供理论参考.研究结果表明, 垄断环境下, 媒体平台的均衡广告价格不依赖于广告定向契合度和消费者隐私信息保护程度.竞争环境下, 当广告商单归属时, 随着自身广告定向契合度和竞争对手广告定向契合度的增强, 媒体平台的均衡广告价格和均衡利润将降低, 消费者隐私信息保护程度对媒体平台均衡广告量的影响取决于媒体平台自身广告定向契合度与竞争对手广告定向契合度的对比;当广告商多归属时, 媒体平台的均衡广告价格、均衡广告量、均衡利润与自身广告定向契合度呈正相关关系, 与竞争对手的广告定向契合度呈负相关关系.媒体平台在参与市场竞争过程中, 应综合考虑其广告定向契合度等因素, 在其成长的不同时期, 审慎制定价格策略.

References:

[1] Athey S, Gans J S. The impact of targeting technology on advertising markets and media competition[J]. The American Economic Review, 2010, 100(2): 608-613.
[2] Bergemann D, Bonatti A. Targeting in advertising markets: Implications for offline versus online media[J]. The RAND Journal of Economics, 2011, 42(3): 417-443. DOI: 10.1111/j.1756-2171.2011.00143.x.
[3] Kim S M. How can we make a socially optimal large-scale media platform? Analysis of a monopolistic Internet media platform using two-sided market theory[J].Telecommunications Policy, 2016, 40(9): 899-918. DOI: 10.1016/j.telpol.2016.07.001.
[4] Carroni E, Ferrari L, Righi S. The price of discovering your needs online[J]. Journal of Economic Behavior & Organization, 2019, 164: 317-330. DOI: 10.1016/j.jebo.2019.06.008.
[5] Hao C X, Yang L. Platform advertising and targeted promotion: Paid or free?[J]. Electronic Commerce Research and Applications, 2022, 55: 101178. DOI: 10.1016/j.elerap.2022.101178.
[6] Gong Q, Pan S Q, Yang H X. Targeted advertising on competing platforms[J]. The B.E.Journal of Theoretical Economics, 2018, 19(1): 20170126. DOI: 10.1515/bejte-2017-0126.
[7] Kox H, Straathof B, Zwart G. Targeted advertising, platform competition, and privacy[J]. Journal of Economics and Management Strategy, 2017, 26(3): 557-570. DOI: 10.1111/jems.12200.
[8] Gal-Or E, Gal-Or R, Penmetsa N. The role of user privacy concerns in shaping competition among platforms[J]. Information Systems Research, 2018, 29(3):698-722. DOI: 10.1287/isre.2017.0730.
[9] Lin X D, Huang X L, Liu S L, et al. Competitive price-quality strategy of platforms under user privacy concerns[J]. Journal of Theoretical and Applied Electronic Commerce Research, 2022, 17(2): 571-589. DOI: 10.3390/jtaer17020030.
[10] Duan Y R, Liu P, Feng Y X. Pricing strategies of two-sided platforms considering privacy concerns[J].Journal of Retailing and Consumer Services, 2022, 64: 102781. DOI: 10.1016/j.jretconser.2021.102781.
[11] Duan Y R, Ge Y, Feng Y X. Pricing and personal data collection strategies of online platforms in the face of privacy concerns[J]. Electronic Commerce Research, 2022, 22(2): 539-559. DOI: 10.1007/s10660-020-09439-8.
[12] Philipp D D, Slobodan S. Privacy and platform competition[J]. International Journal of Industrial Organization, 2018, 61: 686-713. DOI: 10.1016/j.ijindorg.2018.01.003.
[13] Wang J S, Li Z Y, Dou R L, et al. Opening strategies for ride-hailing platforms in competitive market[J]. Systems Engineering—Theory & Practice, 2022, 42(7):1884-1899. DOI:10.12011/SETP2021-1970. (in Chinese)
[14] Dietl H, Lang M, Lin P L. Advertising pricing models in media markets: Lump-sum versus per-consumer charges[J]. Information Economics and Policy, 2013, 25(4): 257-271. DOI: 10.1016/j.infoecopol.2013.06.003.
[15] Morimoto M. Privacy concerns about personalized advertising across multiple social media platforms in Japan: The relationship with information control and persuasion knowledge[J]. International Journal of Advertising, 2021, 40(3): 431-451. DOI: 10.1080/02650487.2020.1796322.

Memo

Memo:

Biography: Yan Lei(1985—), male, doctor, associate professor, chinayanlei@126.com.
Foundation items: The National Social Science Foundation of China(No.17BGL196), Philosophy and Social Science Plan Projects of Henan Province(No.2022BJJ084), Soft Science Plan Projects of Henan Province(No.232400411089), Initial Scientific Research Fund of Doctor in Pingdingshan University(No.PXY-BSQD-202008).
Citation: Yan Lei, Li Peipei, Mei Shu’e, et al. Effect of advertising targeting fit and consumer privacy protection on the profits of media platforms[J].Journal of Southeast University(English Edition), 2023, 39(2):194-203.DOI:10.3969/j.issn.1003-7985.2023.02.011.

Common functions