Getting beer during commercials

adverse effects of ad-avoidance

Torben Stühmeier, Tobias Wenzel

Research output: Contribution to journalArticle

6 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

Fingerprint

market
income
air
effect
Avoidance
advertisement
Revenue
Media markets
Air
financing
Two-sided markets
Responsiveness
Low income
Placing
Financing
Subscription
Income

Keywords

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

Cite this

Getting beer during commercials : adverse effects of ad-avoidance. / Stühmeier, Torben; Wenzel, Tobias.

In: Information Economics and Policy, Vol. 23, No. 1, 2011, p. 98-106.

Research output: Contribution to journalArticle

Stühmeier, Torben ; Wenzel, Tobias. / Getting beer during commercials : adverse effects of ad-avoidance. In: Information Economics and Policy. 2011 ; Vol. 23, No. 1. pp. 98-106.
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