Competition and integration strategy analysis of advertisement-supporting online social network related services

Yung-Ming Li*, Ching Wen Chen, Yung Shao Yeh

*Corresponding author for this work

Research output: Contribution to journalConference articlepeer-review

Abstract

Social networking related services (SNS) become increasingly popular communication and interaction mediums over internet. As most of the SNS are free, the providers generate revenues from advertising and other extension services. This paper investigates the advertising strategy and the strategic of compatibility and co-opetition between two social networking related services. Utilizing game theoretic model, we show that the providers will benefit from both service and business integration, however, the users are always worse when SNS services are compatibly connected. The users will always gain from the quality (features) competition, however, brand competition may hurt the customers as more disturbing ads will be exerted. In general, business integration will result in a higher diversity if ads exerted in two IM services.

Original languageEnglish
Pages (from-to)174-180
Number of pages7
JournalProceedings of the International Conference on Electronic Business (ICEB)
StatePublished - 1 Dec 2007
Event7th International Conference on Electronic Business, ICEB 2007 - Taipei, Taiwan
Duration: 2 Dec 20076 Dec 2007

Keywords

  • Advertising
  • Brand loyalty
  • Co-optition
  • Compatibility
  • Competition
  • Network Externalities
  • Social networking

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