519.866 Mathematical modeling of a strategic advertising campaign

Chibisova A. V. (Bauman Moscow State Technical University), Shinakov D. S. (Bauman Moscow State Technical University)

ADVERTISING CAMPAIGN, ADVERTISING BUDGET, VIDEO PLATFORM, PROFIT MAXIMIZATION, OPTIMAL ADVERTISING STRATEGIES, MATHEMATICAL MODELING IN ECONOMICS


doi: 10.18698/2309-3684-2023-4-109121


In this article, it is proposed to create a profit model for an ordinary advertiser who will advertise on a video platform. Video platforms provide video content services to meet the needs of users in entertainment, as well as advertising space to meet the needs of advertisers in making a profit. When watching videos, consumers can gain perceived usefulness by satisfying their need for entertainment and curiosity. For example, people watch TV shopping channels to buy or learn about products; the net usefulness of advertising for such users is posi-tive. Nevertheless, the inclusion of advertising may negatively affect some consumers, thereby reducing their usefulness. For example, users may get bored with video advertis-ing due to disinterest. Consequently, the relationship between the duration of video and advertising is a key factor affecting the perceived usefulness of consumers. In this article, we investigate the relationship between the duration of the commercial and the advertiser's profit in the short video advertising market.


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