The Economics of Digital Platform Advertising Design: A Review of the Synergistic Mechanism of Form, Context Matching, and Long-Term Value
Main Article Content
Keywords
digital platform monetization, advertising design, two-sided market, psychological reactance, customer lifetime value
Abstract
Traditional digital platforms generally believe that increasing the frequency and impact of advertising can lead to a linear increase in revenue. This review integrates the theories of two-sided markets, psychological resistance, and customer lifetime value to explore the contradiction between the immediate monetization orientation and the long-term sustainable development of the platform and constructs a transmission path of how advertising design affects the long-term value of enterprises. This review concludes that mandatory intrusive advertisements will trigger user resistance, promote the popularization of advertisement blocking, and reduce user retention, while user-autonomous advertising designs, such as skippable and reward-based designs, can balance advertising effectiveness and long-term user value. At the same time, algorithm-driven contextual advertisements can replace privacy-sensitive cross-site tracking, resolving the contradiction between personalization and intrusion. This review believes that the essence of digital advertising design is a long-term asset allocation decision, which can provide a reference for the sustainable value growth of platforms under privacy regulation.
References
- [1] Evans, David S. 2009. “The Online Advertising Industry: Economics, Evolution, and Privacy.” Journal of Economic Perspectives 23 (3): 37–60.DOI: 10.1257/jep.23.3.37
- [2] Boudreau, K. J., Jeppesen, L. B., & Miric, M. (2022). Competing on freemium: Digital competition with network effects. Strategic Management Journal, 43(7), 1374–1401. https://doi.org/10.1002/smj.3366
- [3] Riedel, A., Mulcahy, R., Beatson, A., & Weeks, C. (2025). Advertising in Freemium Services: Lack of Control and Intrusion as the Price Consumers Pay. Journal of Advertising, 54(3), 322–341. https://doi.org/10.1080/00913367.2024.2393078
- [4] Rochet, J. C., & Tirole, J. (2006). Two-sided markets: A progress report. RAND Journal of Economics, 37(3), 645–667. https://doi.org/10.1111/j.1756-2171.2006.tb00036.x
- [5] Edwards, S. M., Li, H., & Lee, J.-H. (2002). Forced Exposure and Psychological Reactance: Antecedents and Consequences of the Perceived Intrusiveness of Pop-Up Ads. Journal of Advertising, 31(3), 83–95. https://doi.org/10.1080/00913367.2002.10673678
- [6] Todri, V. (2022). Frontiers: The Impact of Ad-Blockers on Online Consumer Behavior. Marketing Science (Providence, R.I.), 41(1), 7–18. https://doi.org/10.1287/mksc.2021.1309
- [7] Oc, Y., Bernritter, S., Plangger, K. & Sotgiu, F. (2025). Touch, Swipe, and Tilt: Exploring the Impact of Mobile In-App Advertising Content on Consumer Brand Choice Intention.
- [8] Yin, S., Li, B., & Zhou, Q. (2023). The impact of skippable advertising on advertising avoidance intention in China. Marketing Intelligence & Planning, 41(8), 1121–1137. https://doi.org/10.1108/MIP-07-2022-0298
- [9] Bleier, A., & Eisenbeiss, M. (2015). Personalized Online Advertising Effectiveness: The Interplay of What, When, and Where. Marketing Science (Providence, R.I.), 34(5), 669–688. https://doi.org/10.1287/mksc.2015.0930
- [10] Tinkler, A. (2021). Future-proofing your digital measurement for the post-cookie era. Journal of Digital & Social Media Marketing, 9(3), 229–235. https://doi.org/10.69554/SVPV7790
- [11] Armstrong, M. (2006). Competition in two-sided markets. The Rand Journal of Economics, 37(3), 668–691. https://doi.org/10.1111/j.1756-2171.2006.tb00037.x
- [12] Brehm, J. W. (1966). A theory of psychological reactance. Academic Press.
- [13] Li, H., Edwards, S. M., & Lee, J.-H. (2002). Measuring the Intrusiveness of Advertisements: Scale Development and Validation. Journal of Advertising, 31(2), 37–47. https://doi.org/10.1080/00913367.2002.10673665
- [14] Gupta, S., Lehmann, D. R., & Stuart, J. A. (2004). Valuing Customers. Journal of Marketing Research, 41(1), 7–18. https://doi.org/10.1509/jmkr.41.1.7.25084
- [15] Todri, V., Ghose, A., & Singh, P. V. (2020). Trade-Offs in Online Advertising: Advertising Effectiveness and Annoyance Dynamics Across the Purchase Funnel. Information Systems Research, 31(1), 102–125. https://doi.org/10.1287/isre.2019.0877
- [16] Elpers, J. L. C. M. W., Wedel, M., & Pieters, R. G. M. (2003). Why Do Consumers Stop Viewing Television Commercials? Two Experiments on the Influence of Moment-to-Moment Entertainment and Information Value. Journal of Marketing Research, 40(4), 437–453. https://doi.org/10.1509/jmkr.40.4.437.19393
- [17] Goldfarb, A., & Tucker, C. (2011). Online display advertising: targeting and obtrusiveness. Marketing Science, 30(3), 389+. https://doi.org/10.1287/mksc.1100.0583.
- [18] Aguirre, E., Mahr, D., Grewal, D., de Ruyter, K., & Wetzels, M. (2015). Unraveling the Personalization Paradox: The Effect of Information Collection and Trust-Building Strategies on Online Advertisement Effectiveness. Journal of Retailing, 91(1), 34–49. https://doi.org/10.1016/j.jretai.2014.09.005
