Welfare effects of jointly managed non-targeted advertising in multi-sided media markets

Duarte Brito and Helder Vasconcelos

Economics Letters, 2025, vol. 253, issue C

Abstract: We examine the welfare effects of joint advertising by two competing media platforms that attract viewers through subscription pricing while also generating revenue by selling advertisers access to their subscriber base. Focusing on non-targeted advertising, we show that while joint advertising consistently reduces consumer welfare, its overall impact on total welfare remains uncertain. Crucially, this effect depends on the nuisance cost of advertising to consumers, with total welfare potentially increasing when this cost falls within an intermediate range.

Keywords: Joint advertising; Media; Product differentiation (search for similar items in EconPapers)
JEL-codes: L13 L41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:253:y:2025:i:c:s0165176525002204

DOI: 10.1016/j.econlet.2025.112383

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