The Economics of Internet Media

Martin Peitz, Markus Reisinger
Handbook of Media Economics

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references The Long Tail on 6/3/2019, 2:36:35 PM

excerpt While new Internet media share some properties with traditional media, several novel features have appeared: On the content side, aggregation by third parties that have no editorial policy and user-generated content has become increasingly important. On the advertiser side, fine-tuned tailoring and targeting of ads based on individual user characteristics are common features on many Internet media and social networks. On the user side, we observe increased possibilities of time-shifting, multi-homing, and active search. on 6/3/2019, 2:37:14 PM

tag-as important on 6/3/2019, 2:40:44 PM

cites Competition for Advertisers and for Viewers in Media Markets on 6/3/2019, 2:44:39 PM

excerpt Thus, the Internet is a nonlinear medium in which each consumer can choose her preferred time and order of content consumption. 470 on 6/3/2019, 2:46:07 PM

references Stability in Competition on 6/3/2019, 2:50:06 PM

excerpt 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 on 6/3/2019, 2:52:50 PM

excerpt Internet media facilitate the targeting of ads to specific consumers. Traditional media provide tailored offers such that consumers self-select into particular programming and content. Advertisers then benefit from the correlation of consumer tastes with media content and with advertised products. Clearly, such tailoring strategies are also available on the Internet and were analyzed in the previous section. A novel feature of advertising on the Internet is the wealth of personal data available to data providers, which allows the matching of advertising to consumer tastes on media platforms irrespective of the media content that is consumed. 511 on 6/3/2019, 2:54:21 PM

cites The Online Advertising Industry: Economics, Evolution, and Privacy on 6/3/2019, 3:00:55 PM