Paper Info
Title
Economics of public Wi-Fi monetization and advertising
Abstract
There has been a proliferation of public Wi-Fi hotspots that serve a significant amount of global mobile traffic today. In this paper, we propose a general Wi-Fi monetization model for public Wi-Fi hotspots deployed by venue owners (VOs), where VOs generate revenue from providing both the premium Wi-Fi access and the advertising sponsored Wi-Fi access to mobile users (MUs). With the premium access, MUs directly pay VOs for their Wi-Fi usage; while with the advertising sponsored access, MUs watch advertisements for the free usage of Wi-Fi. VOs sell their ad spaces to advertisers (ADs) via an ad platform, and share a proportion of the revenue with the ad platform. We formulate the economic interactions among the ad platform, VOs, MUs, and ADs as a three-stage Stackelberg game. By analyzing the equilibrium, we show that the ad platform's advertising revenue sharing policy affects a VO's Wi-Fi price but not the VO's advertising price. Moreover, we prove that a single term called equilibrium indicator determines whether a VO will fully rely on the premium access, or fully rely on the advertising sponsored access, or obtain revenue from both types of access. Numerical results show that the VO obtains a large revenue under a large advertising concentration level and a medium MU visiting frequency. © 2016 IEEE.
Year
DOI
Venue
2016
10.1109/INFOCOM.2016.7524558
Proceedings - IEEE INFOCOM
Field
DocType
Volume
Revenue,Revenue sharing,Telecommunications,Advertising,Mobile traffic,Monetization,Stackelberg competition,Business
Conference
2016-July
ISSN
Citations 
PageRank 
0743-166X
2
0.38
References 
Authors
6
4
Name
Order
Citations
PageRank
Haoran Yu13910.34
Man Hon Cheung234221.02
Lin Gao342721.64
Jianwei Huang43643260.73