Getting beer during commercials: Adverse effects of ad-avoidance

Torben Stühmeier and Tobias Wenzel
Authors registered in the RePEc Author Service: Torben Stuehmeier

Information Economics and Policy, 2011, vol. 23, issue 1, 98-106

Abstract: This paper studies the impact of ad-avoidance behavior in media markets. We consider a situation where viewers can avoid advertisement messages. As the media market is a two-sided market, increased ad-avoidance reduces advertisers' value of placing an ad. We contrast two financing regimes, free-to-air and pay-TV. We find that a higher viewer responsiveness to advertising decreases revenues and entry in the free-to-air regime. In contrast, in the pay-TV regime, lower income from advertisements is compensated by higher subscription income leaving revenues and the number of channels unaffected for a fixed total viewership.

Keywords: Media; markets; Ad-avoidance; Two-sided; markets (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Getting beer during commercials: adverse effects of ad-avoidance (2010)
Working Paper: Getting beer during commercials: adverse effects of Ad-Avoidance (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:23:y:2011:i:1:p:98-106

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