讲座：Coordination in Multibrand, Multimedia Advertising: Is It Always a Good Thing? 发布时间：2023-11-17
题 目：Coordination in Multibrand, Multimedia Advertising: Is It Always a Good Thing?
嘉 宾：Wangsheng Zhu, PhD candidate, University of Texas at Dallas
主持人：魏煊 助理教授 上海交通大学安泰经济与管理学院
The growing online retail market has led to the prevalence of multichannel retailing. Meanwhile, retailers are increasingly combining multichannel retailing with a multibranding strategy. While this can further increase the retailer’s sales, it also brings new advertising challenges. Multibrand, multichannel retailers usually launch advertising campaigns for different brands on multiple media. Thus, the retailer’s advertising efforts fall into a set of brand-media units. Each unit’s advertising efforts can affect the online and offline sales of all brands. Therefore, retailers need to coordinate the advertising efforts of different units to maximize advertising efficiency and propel sales. So far, the optimization problem of multibrand, multimedia advertising has not been analyzed in the literature, and our study aims to bridge this gap. We develop a stochastic differential equation model to estimate the impact of multimedia advertising on sales in a multibrand, multichannel context. Using the data from a jewelry retailer in the U.S., we show that our model is effective in predicting future sales driven by advertising. Afterward, we formulate the advertising optimization problems under four coordination strategies: (i) non-coordination, (ii) brand coordination, (iii) media coordination, and (iv) global coordination. By solving the problems with the simulated annealing algorithm, the retailers can obtain the optimal expenditure for each unit under that strategy. Finally, we compare the retailer’s profits under four strategies. Interestingly, we find that brand or media coordination may result in a lower profit than non-coordination. Our findings provide insights regarding the selection of coordination strategies for multibrand, multichannel retailers with multimedia advertising campaigns, especially when they cannot do global coordination.
Wangsheng Zhu is a Ph.D. candidate in Management Science with a concentration in information systems at Naveen Jindal School of Management, University of Texas at Dallas. His research interests include designing new mechanisms and/or developing prediction-and-optimization integrated techniques to address managerial challenges in markets like digital advertising, data monetization, crowdsourcing, and trip planning.