Targeted Advertising and Media Market Competition


Book Description

The Internet provides media firms with an unparalleled opportunity to target advertising towards their consumers. This paper considers how targeted advertising affects different media markets. I show that media firm profits rise and advertising prices rise the most with the ability to target advertising in more competitive media markets and those in which consumers are more averse to advertising. The results also have implications for the policy debate surrounding behavioral targeting techniques. In particular, in competitive media markets, targeted advertising may contribute to excessive media market entry and lead to under-provision of advertising. Such effects mitigate the positive welfare effects of targeting through improvements in the matching between consumers and advertisers.




The Impact of Targeting Technology on Advertising Markets and Media Competition


Book Description

This paper examines the impact of targeting technology on competition between local and general outlets. In the absence of targeting (say, of location), local outlets have an advantage in that there is a tighter match between readers and local consumers that advertisers wish to attract. Targeting restores that advantage to general outlet increasing its demand for advertising but also allows it to more efficiently allocate scarce advertising space. In a baseline case, we demonstrate that such space is the critical constraint and if it can be easily expanded then the adoption of targeting has no impact on profits or competition. We then analyze three extensions of the model in which targeting does benefit general outlets: advertising space is limited or costly; there is heterogeneity across local media markets; or advertisers are capacity-constrained (creating competition between outlets on the advertising-side of the industry). Even in these cases, however, the impact of targeting is mitigated by the fact that when targeting is introduced, it is optimal for outlets to cut back on their supply of ad space.




Targeted Advertising


Book Description

This paper seeks to establish the importance of targeted advertising in media markets. Using zip-code level circulation for US daily newspapers, I show that newspapers facing more competition have lower circulation prices but higher advertising prices than similar newspapers facing little or no competition. I explain this by showing that newspapers in more competitive markets are better able to segment readers according to their location and demographics. This leads to greater homogeneity in the characteristics of subscribers and raises advertisers' willingness to pay for such readers. The results imply a substantial benefit to advertisers and media firms from targeted advertising.







Targeting in Advertising Markets


Book Description

We develop a model with many advertisers (products) and many advertising markets (media). Each advertiser sells to a different segment of consumers, and each medium has a different ability to target advertising messages. We characterize the competitive equilibrium in the media markets and evaluate the implications of targeting in advertising markets.An increase in the targeting ability leads to an increase in the total number of purchases (matches), and hence in the social value of advertising. Yet, an improved targeting ability also increases the concentration of firms advertising in each market. Surprisingly, we then find that the equilibrium price of advertisements is first increasing, then decreasing in the targeting ability.We trace out the implications of targeting for competing media. We distinguish offline and online media by their targeting ability: low versus high. As consumers, relative exposure to online media increases, the revenues of offline media decrease, even though the price of advertising might increase.




Digital and Social Media Marketing


Book Description

This book examines issues and implications of digital and social media marketing for emerging markets. These markets necessitate substantial adaptations of developed theories and approaches employed in the Western world. The book investigates problems specific to emerging markets, while identifying new theoretical constructs and practical applications of digital marketing. It addresses topics such as electronic word of mouth (eWOM), demographic differences in digital marketing, mobile marketing, search engine advertising, among others. A radical increase in both temporal and geographical reach is empowering consumers to exert influence on brands, products, and services. Information and Communication Technologies (ICTs) and digital media are having a significant impact on the way people communicate and fulfil their socio-economic, emotional and material needs. These technologies are also being harnessed by businesses for various purposes including distribution and selling of goods, retailing of consumer services, customer relationship management, and influencing consumer behaviour by employing digital marketing practices. This book considers this, as it examines the practice and research related to digital and social media marketing.







Targeted Advertising, Platform Competition and Privacy


Book Description

Targeted advertising can benefit consumers through lower prices for access to websites, Yet, if consumers dislike that websites collect their personal information, their welfare may go down. We study competition for consumers between websites that can show targeted advertisements. We find that more targeting increases competition and reduces the websites' profits, but in equilibrium websites choose maximum targeting because they cannot credibly commit to low targeting. A privacy protection policy can be beneficial for both consumers and websites. If consumers are heterogeneous in their concerns for privacy, a policy that allows choice between two levels of privacy will be better. Optimal privacy protection takes into account that the more intense competition on the high-targeting market segment also benefits consumers on the less competitive segment. Consumer surplus is maximised by allowing them a choice between a high-targeting regime and a low-targeting regime which provides more privacy.




Local Online Advertising For Dummies


Book Description

Kick your local online advertising into high gear with this friendly, timely guide! Add the newest means of advertising your business into your marketing mix by developing an online advertising strategy. This get-down-to-business guide will show you how. Written by executives from Yodle, a New York-based firm specializing in online advertising, this book reveals the best and brightest ways to get the word out, from creating a Web presence that draws visitors, to using SEO, to jumping boldly into social media advertising. Online advertising market is estimated to grow to $10-$19 billion by 2011, and you'll want your business to be part of this huge shift Explores how to research your audience, set goals, and build a plan Provides steps and tips on creating an effective Web presence and landing pages-then covers how to drive visitors to your site with search engine optimization, AdWords, e-mail blasts, and social media marketing Examines blogs, chat rooms, video, and other ways to win customers Don't miss the free offer from Yodle that comes with this practical guide!




Practical Guide to Comparative Advertising


Book Description

Practical Guide to Comparative Advertising: Dare to Compare is an authoritative, engaging handbook on comparative advertising for food and non-food consumer products. Claim substantiation is a common stakeholder interest among management, advertisers, lawyers and researchers. This handbook covers the corporate culture and strategic goals that encourage comparative advertising, laws and regulations, standards for research evidence, and examples that bring the concepts to life. Of particular value to corporate brand managers, the book includes a checklist of process steps and quality controls that allow managers to orchestrate comparative ad campaigns and manage the risk of complaints from indignant competitors. Alerts research, development and marketing professionals to potential competition issues and legal concerns Provides a reference source for courts of law with respect to accepted industry standards and practices Presents an authoritative perspective, in plain language, on laws and regulations governing comparative advertising, and on worldwide standards governing research evidence in support of advertising claims Covers food and beverage, nutritional supplements, cosmetics and other consumer advertised products