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.
    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.
    LanguageEnglish
    JournalManagement Science
    Volume60
    Issue number7
    Pages1829-1843
    ISSN0025-1909
    DOIs
    StatePublished - 2014

    Keywords

      Cite this

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      title = "Targeted Advertising in Magazine Markets and the Advent of the Internet",
      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.",
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      author = "Ambarish Chandra and Ulrich Kaiser",
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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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      AU - Chandra,Ambarish

      AU - Kaiser,Ulrich

      PY - 2014

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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.

      KW - Targeted advertising

      KW - Magazines

      KW - Advertising rates

      KW - Internet complementarity

      KW - Multihoming

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      DO - 10.1287/mnsc.2013.1830

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      T2 - Management Science

      JF - Management Science

      SN - 0025-1909

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