Effective strategies in short video advertising: leveraging influencer endorsements and discounts

Purpose: This paper aims to examine how the number of short videos posted and the number of influencers employed, two important strategies in short video marketing, affect consumer behavior and how price discounts moderate the effects of influencer endorsement on consumer browsing and purchasing behavior. Design/methodology/approach: Drawing on the literature on influencer endorsement, this study used an ordinary least square model to empirically examine the two effects of endorsement strategies in increasing product traffic and sales for consumers at a short video app, Douyin (TikTok). Findings: The results show that the number of short video ads produces the classic inverted U-shape for traffic and sales, and both effects were strengthened under a high discount condition. Whereas the number of influencers has a positive effect on traffic but produces an inverted U-shape for sales, both effects were undermined under a high discount condition. Originality/value: This study is the first to explore the two distinct effects (repetition effect and diffusion effect) of influencer endorsement on browsing and purchasing behavior and theorize about the moderate effects of discounts on these effects.