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Cooperative Advertising Mode On Social Media Platform

Posted on:2019-10-19Degree:MasterType:Thesis
Country:ChinaCandidate:K YangFull Text:PDF
GTID:2428330590451706Subject:Mathematics
Abstract/Summary:PDF Full Text Request
Cooperative advertising plays a significant role in marketing programs.In the traditional marketing supply chain system,a manufacturer pays a portion of the advertising cost for the retailers in order to increase the market share of the products and increase the overall profits of the channels.Traditional advertising is mainly spread through non-digital media such as television,radio,and newspapers.This mode of communication has indeed brought about tremendous change in people's live,but it has also caused the useless and falseness of information.Advertisers' untargeted advertising results in a very low return on investment for advertising.With the rapid development of Internet technology,individuals' purchasing behavior on the Internet and their consumption data can be collected on big data platforms,which provides advertisers a new choice.The development of big data technology enables the advertising platform to identify target groups more effectively.The advertising platform can advertise among targeted consumers in a more precise way by the classification of customers,which greatly increases the efficiency.The popularity of social networks has given consumers more information to refer while purchasing goods.Each consumer's social circle has a certain degree of influence on his purchasing behavior.This paper starts from the perspective of consumer's utility to deduce consumer's demand,and then studies the communication mode of cooperative advertising in social media environment.We discuss the optimal decisions of the manufacturer and the retailer from two dimensions: one is choosing targeted or untargeted advertising;the other is whether the key opinion leader exists.Compared with untargeted advertising,when the retailer use targeted advertising,more advertising is required,and the profits of the manufacturer and retailer both increase.However,the manufacturer's participation rate does not change,which is only related to the ratio of the gross profit margin of the manufacturer and the retailer.In addition,if the key opinion leader exists,the retailer also needs advertising more,and the proportion of advertising to the key opinion leader increases.Retailers should choose the optimal key opinion leader and use targeted advertising,which increases the value of the cooperative advertising.Although it needs to cost more in the early stage,the profits of the manufacturer and retailer will increase.Even if there is an advertising budget constraint,the retailer should still choose this approach,but in this situation,the manufacturer's participation rate will change according to the advertising budget.Besides,the structure of the social network has an impact on the retailer's optimal decision,but it has no effect on the manufacturer's decision.As the closeness among the consumers increases,the retailer needs advertising more.The profits of manufacturer and the retailer will increase,and the value of cooperative advertising will also increase.
Keywords/Search Tags:cooperative advertising, targeted advertising, untargeted advertising, key opinion leader, social network
PDF Full Text Request
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