Getting beer during commercials: adverse effects of ad-avoidance

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

No 2, DICE Discussion Papers from Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

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)
JEL-codes: L11 L13 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Getting beer during commercials: Adverse effects of ad-avoidance (2011)
Working Paper: Getting beer during commercials: adverse effects of Ad-Avoidance (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:dicedp:02

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