Targeted Advertising in Magazine Markets and the Advent of the Internet

36 Pages Posted: 6 Aug 2010 Last revised: 26 Jul 2013

See all articles by Ambarish Chandra

Ambarish Chandra

University of Toronto

Ulrich Kaiser

University of Zurich; ZEW – Leibniz Centre for European Economic Research; University of Copenhagen - Centre for Industrial Economics; Government of the Kingdom of Denmark - Centre for Economic and Business Research

Date Written: July 13, 2013

Abstract

This paper examines how the ability of traditional media firms to engage in targeted advertising has changed with the advent of the Internet. We find that the premium for reaching a homogeneous audience increases for magazines that have a companion website, as well as for those whose readers are more likely to be online. This indicates a complementarity between offline and online channels with respect to targeted advertising. We hypothesize that this result is driven by multi-homing consumers who enhance the value of targeted advertising, in contrast to the usual assumption that multiple advertising messages are redundant.

Keywords: targeted advertising, magazines, advertising rates, Internet complementarity, multi-homing

Suggested Citation

Chandra, Ambarish and Kaiser, Ulrich, Targeted Advertising in Magazine Markets and the Advent of the Internet (July 13, 2013). Available at SSRN: https://ssrn.com/abstract=1653435 or http://dx.doi.org/10.2139/ssrn.1653435

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