Research on advertising strategy based on game theory

In the period of product homogeneity, the competition of advertising is an important aspect of the nonprice competition among enterprises. The paper introduces the game theory in the field of economics into the study of issues in enterprise advertising campaign and analyzes the two-person game in advertising activity. The paper points out the advertising predicament the advertisers are facing in the digital age which is the audience´s immunity to advertising and the exorbitant investment in advertising. In the end, the product placement strategies are put forward.