Economics of public Wi-Fi monetization and advertising
Refereed conference paper presented and published in conference proceedings

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AbstractThere 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.
All Author(s) ListYu H., Cheung M.H., Gao L., Huang J.
Name of Conference35th Annual IEEE International Conference on Computer Communications, IEEE INFOCOM 2016
Start Date of Conference10/04/2016
End Date of Conference14/04/2016
Place of ConferenceSan Francisco
Country/Region of ConferenceUnited States of America
Detailed descriptionorganized by IEEE,
Volume Number2016-July
LanguagesEnglish-United Kingdom

Last updated on 2021-15-01 at 00:02