Targeting in advertising markets: implications for offline versus online media

Dirk Bergemann, Alessandro Bonatti
The RAND Journal of Economics

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In summary, Bergemann and Bonatti (2011) show that targeting on the Internet allows platforms to split up a single advertising market into multiple ones. This allows producers of niche products, who are not active in the single large advertising market, to advertise, thereby increasing advertising efficiency. Small and also large firms benefit from targeting. By contrast, medium-sized firms are worse off because attention of consumers migrates to smaller advertising markets. 503 cites Targeting in advertising markets: implications for offline versus online media on 6/3/2019, 2:53:14 PM