Platform traffic support strategies under dual live-streaming channels

In the rapidly evolving landscape of live-streaming e-commerce, it is common for a brand to use a key opinion leader (KOL) to conduct live product promotions on a live-streaming platform. Additionally, the brand will establish a brand-based live-streaming channel on the platform. Confronted with the two live-streaming forms, the platform adopts diverse traffic support strategies, resulting in a range of impacts. This study introduces a model in which a brand sells products on a live-streaming platform through both KOL-based and brand-based live-streaming channels. The platform has the option to choose from several traffic support strategies. By analyzing the optimal support strategy for the platform, this study draws the following conclusions: (1) Although the platform can generate more revenue from KOL-based live-streaming, it may still choose to provide only traffic support for brand-based live-streaming. (2) Contrary to intuitive expectations, the value of live-streaming platforms, brands, and KOLs’ traffic support strategies may decrease as technical service rates increase. (3) Consumer surplus reaches a maximum when the platform uses the same level of traffic support in both channels. Notably, the value of the traffic support strategy for consumers may still increase as the technical service rate increases.