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Chinese Journal of Management Science ›› 2025, Vol. 33 ›› Issue (6): 196-207.doi: 10.16381/j.cnki.issn1003-207x.2022.1065

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Pricing Decision and Channel Selection Strategy for Online Advertising Service Supply Chain Considering Add-on Service and Cooperation Mode

Yunhuan Zhang1, Zehui Ge1,2(), Daoping Wang1   

  1. 1.School of Economics and Management,University of Science and Technology Beijing,Beijing 100083,China
    2.The Institute of Low Carbon Operations Strategy for Beijing Enterprises,Beijing 100083,China
  • Received:2022-05-13 Revised:2022-12-24 Online:2025-06-25 Published:2025-07-04
  • Contact: Zehui Ge E-mail:gezehui@ustb.edu.cn

Abstract:

Whether to introduce direct channel,namely, establish an internal sales department to sell online advertisements directly to advertisers, is an important decision facing the media when it develops to a certain stage. It focuses on an online marketing service supply chain comprising of one media and one agency. There are four possible configurations in the market based on two different cooperation modes (premium mode and rebate mode) and two different channel strategies (the media introduce direct channel or not). The impact of cooperation mode, the proportion of add-on service purchased and the degree of competition between channels on the pricing decision and channel selection of service supply chain is considered and media-led Stackelberg game is used to solve the equilibrium outcomes of different models. It is found that 1) the introduction of direct channel is not always beneficial to the media, but is basically unfavorable to agents; 2) add-on service can alleviate the double marginal effect under the premium model, and the greater the proportion of add-on services purchased, the more evident the effect; 3) under different cooperation modes, the sales price of online advertising in the direct channel is always lower than that in the agency channel. The research results can be used as reference for media’s channel selection and agents' coping strategies.

Key words: agency channel, direct channel, premium mode, rebate mode, add-on service

CLC Number: