Study On Advertising Strategies Of Two-sided Platforms

As a special kind of business model, two-sided platforms which are widely concernedby both academia and industry have become one of the academic theory forefronts in21stCentury. At present, domestic and foreign scholars are focus on the structure and thecharacteristics of the platform, the platform competition and platform pricing strategy.They pay less attention to the non-price competition strategy, especially advertisingstrategy. Therefore, studying on the advertising strategies of two-sided platform has veryimportant theoretical significance and practical value. Summarized the domestic andforeign research results, this paper studies further on the advertising strategies of two-sidedplatform by the method of literature review, system modeling, game theory.Firstly, this paper divides advertising into informative advertising and persuasive one.Developing and expanding the demand function, construct two-sided platform advertisingstrategies model in local monopoly with advertising coverage parameter. Find the effects ofmarket share and advertising coverage parameter to corporate profits in the condition thattwo-sides are information advertising, two-sides are persuasive advertising and one sideinformative advertising other side persuasive advertising. Secondly, divide the attributionof user behavior, based on the traditional Hotelling model, release the existing assumptionon the symmetric models of single-homing and multi-homing, and construct theadvertising strategies in the non-symmetric condition that bilateral users are single-homing,bilateral users are partly multi-homing and one single-homing and other multi-homingpartly. Through the numerical simulation, analyze the impact of market share andadvertising coverage rate to corporate profits. Finally, analyze the advertising strategies ofthe two-sided platform under different user belonging behavior.