In-feed Advertising Pricing and Privacy Information Utilization Strategies of Short Video Platforms

In this paper, short video platforms use users’ privacy information to push In-feed advertising as the background, based on utility theory and two-sided market theory, we construct a single oligopolistic market decision-making model, and study the strategies of In-feed advertising pricing and privacy information utilization on short video platforms with the perspective of users’ privacy concerns. Analysis shows that privacy concerns will negatively affect the utilization of platform privacy information. When privacy concerns increases, advertising price and platform’s profit will decrease first and then increase. In addition, the platform always profits from positive cross-network externality, although the privacy information utilization increases first and then decreases as it rises.The privacy information utilization, advertising price and platform’s profit decrease with the increase of unit technology cost and users’ advertising aversion, and increase with the rise of users’ perceived usefulness in privacy information utilization and advertisers’ basic revenue.