Targeted Advertising in Magazine Markets and the Advent of the Internet

Ambarish Chandra, Ulrich Kaiser

    Research output: Contribution to journalJournal articleResearchpeer-review

    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 multihoming consumers who enhance the value of targeted advertising, in contrast to the usual assumption that multiple advertising messages are redundant.
    Original languageEnglish
    JournalManagement Science
    Volume60
    Issue number7
    Pages (from-to)1829-1843
    ISSN0025-1909
    DOIs
    Publication statusPublished - 2014

    Cite this

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    Targeted Advertising in Magazine Markets and the Advent of the Internet. / Chandra, Ambarish ; Kaiser, Ulrich.

    In: Management Science, Vol. 60, No. 7, 2014, p. 1829-1843 .

    Research output: Contribution to journalJournal articleResearchpeer-review

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    AB - 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 multihoming consumers who enhance the value of targeted advertising, in contrast to the usual assumption that multiple advertising messages are redundant.

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    KW - Magazines

    KW - Advertising rates

    KW - Internet complementarity

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