Ad clutter, time use, and media diversity

Martin Peitz and Simon Anderson

No 15130, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We introduce advertising congestion along with a time-use model of consumer choice among media. Both consumers and advertisers multi-home. Higher equilibrium advertising levels ensue on less popular media platforms because platforms treat consumer attention as a common property resource: smaller platforms internalize less the congestion from advertising and so advertise more. Platform entry raises the ad nuisance "price" to consumers and diminishes the quality of the consumption experience on all platforms. With symmetric platforms, entry still leads to higher consumer benefits. However, entry of less attractive platforms can increase ad nuisance levels so much that consumers are worse off.

Keywords: Media economics; Advertising clutter; Limited attention; Information congestion; Two-sided markets (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Date: 2020-08
New Economics Papers: this item is included in nep-com and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Ad Clutter, Time Use, and Media Diversity (2023)
Working Paper: Ad Clutter, Time Use and Media Diversity (2020)
Working Paper: Ad Clutter, Time Use and Media Diversity (2019)
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