Why Advertise on Short Video Platforms? Optimizing Online Advertising Using Advertisement Quality
The emergence of short videos has provided a new way for advertisers to place online video advertisements. On short video platforms, the quality of advertisements is the main factor that attracts consumers. This study constructs a model based on advertisers’ advertising behavior and formulates their...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2022-07-01
|
| Series: | Journal of Theoretical and Applied Electronic Commerce Research |
| Subjects: | |
| Online Access: | https://www.mdpi.com/0718-1876/17/3/54 |
| _version_ | 1797486040142839808 |
|---|---|
| author | Weifeng Li Minghui Jiang Wentao Zhan |
| author_facet | Weifeng Li Minghui Jiang Wentao Zhan |
| author_sort | Weifeng Li |
| collection | DOAJ |
| description | The emergence of short videos has provided a new way for advertisers to place online video advertisements. On short video platforms, the quality of advertisements is the main factor that attracts consumers. This study constructs a model based on advertisers’ advertising behavior and formulates their optimal advertising quality strategies. We then expand on the quality strategy by considering advertisers’ pricing factors. In addition, we compare advertisement placement on short video platforms and on general video platforms and analyze how advertisers should choose their advertisement placement strategies. Our research shows that advertisers should improve the quality of their advertisements to gain more profit when the platform is operating well, so that users become more willing to buy and products become more profitable. In addition, advertisers should present their advertisements in the shortest possible duration and show them after a longer program. Users’ price sensitivity negatively affects advertisers’ optimal advertising quality strategies and profits. Furthermore, advertisers’ choice of platform mainly depends on the advertising nuisance cost to users and the platform’s cost of entry. Finally, we find an optimal budget allocation scheme for small companies joining short video platforms to invest in bidding and designing advertisements. |
| first_indexed | 2024-03-09T23:27:30Z |
| format | Article |
| id | doaj.art-9de775a759b843eea8598c01470a0043 |
| institution | Directory Open Access Journal |
| issn | 0718-1876 |
| language | English |
| last_indexed | 2024-03-09T23:27:30Z |
| publishDate | 2022-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Journal of Theoretical and Applied Electronic Commerce Research |
| spelling | doaj.art-9de775a759b843eea8598c01470a00432023-11-23T17:15:36ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762022-07-011731057107410.3390/jtaer17030054Why Advertise on Short Video Platforms? Optimizing Online Advertising Using Advertisement QualityWeifeng Li0Minghui Jiang1Wentao Zhan2School of Management, Harbin Institute of Technology, Harbin 150001, ChinaSchool of Management, Harbin Institute of Technology, Harbin 150001, ChinaSchool of Management, Harbin Institute of Technology, Harbin 150001, ChinaThe emergence of short videos has provided a new way for advertisers to place online video advertisements. On short video platforms, the quality of advertisements is the main factor that attracts consumers. This study constructs a model based on advertisers’ advertising behavior and formulates their optimal advertising quality strategies. We then expand on the quality strategy by considering advertisers’ pricing factors. In addition, we compare advertisement placement on short video platforms and on general video platforms and analyze how advertisers should choose their advertisement placement strategies. Our research shows that advertisers should improve the quality of their advertisements to gain more profit when the platform is operating well, so that users become more willing to buy and products become more profitable. In addition, advertisers should present their advertisements in the shortest possible duration and show them after a longer program. Users’ price sensitivity negatively affects advertisers’ optimal advertising quality strategies and profits. Furthermore, advertisers’ choice of platform mainly depends on the advertising nuisance cost to users and the platform’s cost of entry. Finally, we find an optimal budget allocation scheme for small companies joining short video platforms to invest in bidding and designing advertisements.https://www.mdpi.com/0718-1876/17/3/54short video platformadvertising nuisance costcost allocationadvertising placement |
| spellingShingle | Weifeng Li Minghui Jiang Wentao Zhan Why Advertise on Short Video Platforms? Optimizing Online Advertising Using Advertisement Quality Journal of Theoretical and Applied Electronic Commerce Research short video platform advertising nuisance cost cost allocation advertising placement |
| title | Why Advertise on Short Video Platforms? Optimizing Online Advertising Using Advertisement Quality |
| title_full | Why Advertise on Short Video Platforms? Optimizing Online Advertising Using Advertisement Quality |
| title_fullStr | Why Advertise on Short Video Platforms? Optimizing Online Advertising Using Advertisement Quality |
| title_full_unstemmed | Why Advertise on Short Video Platforms? Optimizing Online Advertising Using Advertisement Quality |
| title_short | Why Advertise on Short Video Platforms? Optimizing Online Advertising Using Advertisement Quality |
| title_sort | why advertise on short video platforms optimizing online advertising using advertisement quality |
| topic | short video platform advertising nuisance cost cost allocation advertising placement |
| url | https://www.mdpi.com/0718-1876/17/3/54 |
| work_keys_str_mv | AT weifengli whyadvertiseonshortvideoplatformsoptimizingonlineadvertisingusingadvertisementquality AT minghuijiang whyadvertiseonshortvideoplatformsoptimizingonlineadvertisingusingadvertisementquality AT wentaozhan whyadvertiseonshortvideoplatformsoptimizingonlineadvertisingusingadvertisementquality |