[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]

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

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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

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

Keywords:

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

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.

References:

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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.

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