Research On Combined Application Strategy Of Targeted Advertising In E-Commerce

With the development of E-commerce,to achieve greater marketing effect with as less marketing investment as possible,firms not only adapt targeted advertising more and more widely,but also pay more attention to the combined application of targeted advertising and massive advertising,targeted coupons,targeted pricing or other marketing strategies.However,there is still lack of systematic theoretical research on the combined application strategies of targeted advertising.This dissertation employs mathematical models to study the strategies of several typical combined application of targeted advertising.The results of the dissertation can not only enrich the theoretical system of targeted advertising system,but also provide guidelines for the firms to use combined targeted advertising in practice which has important practical significance.By analyzing the basic concepts,characteristics of targeted advertising,application mode,implementation process of combined targeted advertising,this dissertation focuses on the following research questions:Firstly,the advertising strategies of combined application of targeted advertising and massive advertising are investigated.On the one hand,considering the different delivery time sequences between targeted advertising and massive advertising,the combined application strategy of synchronous delivery of targeted advertising and massive advertising and the combined application strategy of asynchronous delivery of targeted advertising and massive advertising are discussed with an optimization model.Furthermore,the strategies are compared with the strategies when firms only use targeted advertising of massive advertising.The results show that the firm could get more profit when she adapts the combined application of asynchronous delivery of targeted advertising and massive advertising.Only when the ratio of the maximum information value transmitted by targeted advertising to the maximum information value transmitted by massive advertising is higher than a certain threshold,the asynchronous delivery of targeted advertising and massive advertising can help the firm to obtain more profit than using massive advertising or targeted advertising alone.On the other hand,considering the advertising budget constrain,the combined application strategy of targeted advertising and massive advertising are discussed with an optimization model.The results indicate that,compared with only using massive advertising,when the firm’s advertising budget is lower than a certain threshold and the weakening effect of targeted advertising on massive advertising is strong,the firm can obtain more profit by the combined application of targeted advertising and massive advertising.When the advertising budget is higher than this threshold,and the weakening effect of targeted advertising on massive advertising is strong or weak,the firm should choose the combined application of targeted advertising and massive advertising to obtain more revenue.In other cases,it is better for enterprises to use massive advertising alone.Hence,firms should not use combined application of targeted advertising and massive advertising blindly.Then,combined application of targeted advertising and targeted coupons are investigated.The dissertation constructs the competitive advertising and pricing model of duopolistic firms,and analyzes the combined application strategies of targeted advertising and targeted coupons when the firms use the mixed targeted mode based on consumer product preference and geographical location.The results show that the effect of using targeted coupons synchronized with targeted advertising is worse than that of using targeted coupons asynchronized with targeted advertising.When consumer product preference is the main influencing factor,the application of targeted coupons asynchronized with targeted advertising can alleviate the competition between enterprises and improve firm’s profits and social welfare.Then,at any time,the appplication of targeted coupons synchronized with targeted advertising always hurts the firms’ profits.Therefore,when consumer product preference is the main influencing factor,the competitive firms should use targeted coupons asynchronized with targeted advertising.Thirdly,the combined application strategies of targeted advertising in dual-supply channel are investigated.With a game theorectical model,advertising and pricing strategies under three different advertising modes are discussed,including manufacturer advertises in both online channel and retailing channel(MA),retailer advertises in both online channel and retailing channel(RA),and manufacturer advertises in online channel but retailer advertises in retailing channel(CA).Furthermore,this dissertation compares the advertising strategies with the advertising strategies when only retailing channel exists.The conclusions show that when manufacturer establishes the online channel,it may hurt the manufacture’s profit but increase the retailer’s profit.When the unit advertising cost is high,the retailer’s profit always be worse.Then,the advertising choice strategies are analyzed by comparing the strategies of the three advertising modes.It shows that RA is the worst advertising,and there may be no optimal advertising mode can maximize both manufacturer and retailer’s profits simultaneously.Finally,the combined application strategies of targeted advertising and targeted pricing considering consumer privacy concern are investigated.Constructing a game model of advertising and pricing competition of duopoly firms,on the one hand,this dissertation studies the combined application strategy of targeted advertising and targeted pricing when privacy concern is not considered,and compares it with the advertising strategy and pricing strategy when the firms uses the combined application of targeted advertising and uniform pricing.The results show that the combined application strategies of targeted advertising and targeted pricing may not the optimal choice of the firms,in certain conditions,when both firms adopt targeted pricing mode,the competition between firms will be intensified,the profit of firms will be hurt,and the firms may fall into the prisoner’s dilemma.On the other hand,the combined application of targeted advertising and targeted pricing considering consumer privacy concern is studied.The results give that,the profit and market share of the firm who increases the advertising intensity and occupies the market advantage may be hurt under certain condition.When two asymmetric firms compete with targeted advertising,Matthew effect will be forms due to the existence of consumer privacy concern and social privacy attitude.