TITLE:
Research on Advertising Volume, Pricing and Promotion Strategies of the Online Video Platform
AUTHORS:
Hao Wu, Deqing Tan
KEYWORDS:
Advertising Volume Strategy, Pricing Strategy, Promotion Strategies, Promotion Period, Promotion Investment
JOURNAL NAME:
Journal of Mathematical Finance,
Vol.13 No.4,
November
27,
2023
ABSTRACT: Considering that the promotion strategies adopted by
the platform can increase consumer expectations, the paper constructs decision
models for the platform profits maximisation problem and analyse the optimal
advertising volume, optimal pricing and optimal promotion strategies of the
platform. The results show that the platform is able to influence advertising
volume, pricing, or market demand through its promotion strategies, thereby
increasing the video profits. Before the video is launched in the market, there
exists an optimal promotion period and an optimal allocation proportion of
promotion investment. The optimal promotion period before the video is launched
in the market is the same under different business models. The optimal
promotion investment before video launched is the largest in paid model, the
second largest in mixed model, and the smallest in free model.