Optimal Rules for Advertising Budget Allocation Across Movie Versions Marketed in Sequential Distribution Stages
研究了电影在不同发行渠道(影院、视频销售租赁、在线流媒体)中如何分配广告预算以最大化总利润,提出了一个简单且接近最优的分配规则。
Movies are often sequentially offered through different distribution channels such as theaters, video sales and rentals, and online streaming. This research answers the question of how the advertising budget should be allocated across the various distribution channels to maximize overall profit. An extant allocation model is limited because of maximizing the logarithms of sales minus costs rather than true untransformed profit. Overcoming this limitation, my research offers a simple, near-optimal rule which takes into account not only the various effectiveness measures of advertising in terms of elasticities and, both, carryover and spillover effects, but also the size of the channels (expected profit) and truly maximizes profit. Due to its cascading property, the rule can be extended to any number of sequential distribution channels. This article also explains how the parameter values for the rule can be obtained and what profit improvement can be gained depending on the data structure.