Targeted Advertising: The Role of Subscriber Characteristics in Media Markets
MPRA Paper from University Library of Munich, Germany
This paper seeks to establish the importance of targeted advertising in media markets. Using zip-code level circulation for US daily newspapers, I show that newspapers facing more competition have lower circulation prices but higher advertising prices than similar newspapers facing little or no competition. I explain this by showing that newspapers in more competitive markets are better able to segment readers according to their location and demographics. This leads to greater homogeneity in the characteristics of subscribers and raises advertisers' willingness to pay for such readers. The results imply a substantial benefit to advertisers and media firms from targeted advertising.
Keywords: Targeted Advertising; Media Markets; Newspapers; Media Segmentation (search for similar items in EconPapers)
JEL-codes: D4 L1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-cul, nep-mic, nep-mkt and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/7955/1/MPRA_paper_7955.pdf original version (application/pdf)
Journal Article: TARGETED ADVERTISING: THE ROLE OF SUBSCRIBER CHARACTERISTICS IN MEDIA MARKETS* (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:7955
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().