Follow the Money: Online Piracy and Self-Regulation in the Advertising Industry

34 Pages Posted: 15 Mar 2018

See all articles by Michail Batikas

Michail Batikas

Ludwig Maximilian University of Munich - Faculty of Business Administration (Munich School of Management)

Jörg Claussen

Ludwig Maximilian University of Munich - Faculty of Business Administration (Munich School of Management); Copenhagen Business School - Department of Innovation and Organizational Economics

Christian Peukert

Universidade Catolica Portuguesa

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Date Written: January 30, 2018

Abstract

In this paper, we study the effects of a self-regulatory effort, orchestrated by the European Commission, that aims to reduce advertising revenues for publishers of copyright infringing content. Historical data lets us follow how the third-party advertising and tracking services associated with a large number of piracy websites and a corresponding set of legitimate “placebo” websites change after the agreement to self-regulate went in place. We find that larger EU-based advertisers comply with the initiative and reduce their connections with piracy websites. We do not find reductions for other non-advertising services that track consumers, which has potentially important implications for the efficiency of targeted advertising.

Keywords: piracy, copyright enforcement, online advertising, natural experiment

JEL Classification: K400, L500, L800

Suggested Citation

Batikas, Michail and Claussen, Jörg and Peukert, Christian, Follow the Money: Online Piracy and Self-Regulation in the Advertising Industry (January 30, 2018). CESifo Working Paper Series No. 6852. Available at SSRN: https://ssrn.com/abstract=3140358

Michail Batikas

Ludwig Maximilian University of Munich - Faculty of Business Administration (Munich School of Management) ( email )

Kaulbachstr. 45
Munich, 80539
Germany

Jörg Claussen

Ludwig Maximilian University of Munich - Faculty of Business Administration (Munich School of Management) ( email )

Kaulbachstr. 45
Munich, 80539
Germany

Copenhagen Business School - Department of Innovation and Organizational Economics ( email )

Kilevej 14A
Frederiksberg, 2000
Denmark

Christian Peukert (Contact Author)

Universidade Catolica Portuguesa ( email )

Portugal

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