TITLE:
Self-Built or KOL-Operated? Short-Video Marketing Channel Choice for By-Product Sales
AUTHORS:
Yunwei Shao, Jiayi Li
KEYWORDS:
By-Product Synergy, Short Video Marketing, Spillover Effect, Channel Selection
JOURNAL NAME:
Open Journal of Applied Sciences,
Vol.16 No.10,
October
29,
2026
ABSTRACT: With the rapid development of the short video industry, an increasing number of manufacturers are leveraging short video channels to promote their by-products. In the context of by-product synergy (BPS), this paper investigates how a manufacturer should choose between two short video marketing channels for by-product sales: a self-built channel and a KOL-operated channel. By developing game-theoretic models, we analyze the optimal decisions regarding the quantity of the main product and by-product, short video creation effort, and traffic investment under different channel structures, and explore the effects of key factors such as spillover effect, commission rate, and signing fee on the manufacturer’s channel preference and profitability. The results indicate that the manufacturer prefers a self-built channel when the spillover effect is low, whereas the KOL-operated channel becomes more favorable when the spillover effect is high and the manufacturer’s self-building cost coefficient is high. The effect of the commission rate on channel preference depends on the spillover effect: a higher commission rate favors the self-built channel when the spillover effect is low, whereas a moderate commission rate favors the KOL-operated channel when the spillover effect is high. In the extended scenario where waste is not fully utilized, the waste disposal cost and traffic investment cost-sharing mechanism further influence the manufacturer’s channel choice. This study provides theoretical foundations and managerial insights for manufacturers’ by-product marketing strategies in the era of short video marketing, thereby filling a research gap in the literature on by-product synergy and marketing channel selection.