Getting beer during commercials: adverse effects of ad-avoidance

Torben Stühmeier, Tobias Wenzel

Research output: Contribution to journalArticle

7 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)98-106
Number of pages9
JournalInformation Economics and Policy
Volume23
Issue number1
DOIs
Publication statusPublished - 2011

Keywords

  • Ad-avoidance
  • Media markets
  • Two-sided markets

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