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| Tekijä: | Chandra, A. |
| Otsikko: | Targeted advertising: the role of subscriber characteristics in media markets |
| Lehti: | Journal of Industrial Economics
2009 : MAR, VOL 57:1 p. 58-84 |
| Asiasana: | advertising newspaper advertising newspaper industry communication |
| Vapaa asiasana: | mass media |
| Kieli: | eng |
| Tiivistelmä: | This paper pursues to establish the importance of targeted advertising in media markets. Using zip-code level circulation for U.S. newspapers, it is shown that newspapers encountering more competition have lower circulation prices but higher advertising prices than similar newspapers facing less or no competition. This is explained by showing that newspapers located in more competitive markets are better in segmenting readers according to their location and demographics. This leads to greater homogeneity in the attributes of subscribers and increases advertisers' willingness to pay for such readers. The results suggest a considerable benefit to advertisers and media companies from targeted advertising. |
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