IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v43y2024i4p734-750.html
   My bibliography  Save this article

Advertising and Content Creation on Digital Content Platforms

Author

Listed:
  • Qitian Ren

    (Marketing, The Chinese University of Hong Kong, Shenzhen 518172, China)

Abstract

This paper investigates the interplay between advertising and decentralized content creation on digital content platforms, such as YouTube, TikTok, and Instagram. Unlike traditional media, content on these platforms is produced by numerous creators competing for viewer attention. This study addresses how a platform’s advertising policy (specifically, the level of advertising embedded in organic content) and various market factors, including viewers’ satiation rates and their distaste for ads, influence decentralized content creation, exploring the ensuing implications for the platform’s advertising and revenue-sharing policy design. Using a game-theoretical model, the research reveals that the level of advertising, viewers’ satiation rates, and their distaste for ads can have a nonmonotonic impact on the equilibrium content quality. Contrary to conventional wisdom, a low level of advertising could be advantageous for platforms when viewers are inclined to consume high volumes of content, factoring in the strategic influence on content creation. Additionally, revenue sharing with creators depends on factors such as the viewers’ satiation rates and the creators’ creative costs. This study offers content platforms strategic guidance on refining their advertising and revenue-sharing policies in the creator economy.

Suggested Citation

  • Qitian Ren, 2024. "Advertising and Content Creation on Digital Content Platforms," Marketing Science, INFORMS, vol. 43(4), pages 734-750, July.
    • Handle: RePEc:inm:ormksc:v:43:y:2024:i:4:p:734-750
    DOI: 10.1287/mksc.2022.0387
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.2022.0387
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.2022.0387?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:43:y:2024:i:4:p:734-750. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.