The Optimal Choosing of Advertising Mode under Payment Contracts Analysis

This paper investigates the optimal choosing of advertising mode under payment contracts analysis. Our questions address how supplier decision on advertising mode choice. Two types of payment contracts which related with advertising patterns are considered - charge by clicks and charge by valid clicks, the former related with traditional advertising pattern and the latter related with Tureview pattern. By using a Stackelberg Game model, we analyse the optimal decision of supplier and advertising company. Our results indicate the optimal choice of supplier and network video company directly related to the unit profits of the products sold.