Ad Clutter, Time Use and Media Diversity

Simon Anderson and Martin Peitz

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

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 benets. However, entry of less attractive platforms can increase ad nuisance levels so much that consumeres 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)
Pages: 47
Date: 2020-07
New Economics Papers: this item is included in nep-com and nep-mic
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Citations: View citations in EconPapers (3)

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https://www.crctr224.de/research/discussion-papers/archive/dp140

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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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2019_140v2

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