Cooperative Advertising Strategies On Multi-platform Internet Advertising Model

With the development of Internet advertising,a problem worth studying is that in the process of decision making,consumers have very low cost of switching between different websites,and they often see advertisements displayed on different advertising platforms.This problem will lead to excessive or deficiency advertising,which will lead to low efficiency of Internet advertising.Cooperative advertising is a common mode of commercial cooperation between updown stream in modern supply chain.It leads upstream manufacturers to provide certain advertising sharing to downstream retailers,to enhance retailer's advertising investment for higher channel profits.In traditional advertising platforms,the cooperative advertising mode has been verified,and its value in new advertising platforms deserves further study.Based on the utility of consumers and the characteristics of multi-platform Internet advertising,this paper bulids a mathematical model of multi-platform Internet advertising investment and consumer purchasing.Based on this model,this paper solves the Nash game of retailers' advertising investment competition under symmetrical conditions.According to the results of the Nash game,this paper analyses the influence of different parameters on retailers' profit and decision-making.It is concluded that the change of popularity among platforms will not affect retailers' total profit,but will affect their specific decision.After that,this paper analyses the impact of platform parameters on platform revenue,and obtains that the platform needs to do its best to improve its popularity,because the platform with high popularity can benefit from the advertising value of other platforms.Based on the above model,this paper discusses the value of cooperative advertising mode in multi-platform Internet advertising.From the numerical calculation,this paper concludes that the cooperative advertising mode can effectively improve the profits of manufacturers and retailers.With higher marginal profit,the manufacturer should adopt a higher share rate of cooperative advertising.Platform parameters have little effect on the share rate,which allows manufacturers to give a better share rate when they do not know the retailer's advertising platform.Price discount mode is also a common up-down stream cooperation mode in supply chain.This paper compares this mode with cooperative advertising mode under multiplatform Internet advertising.In any case,cooperative advertising mode is better for manufacturers,so manufacturers always should choose cooperative advertising mode.