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What Influences Advertising Price in Television Channels?: An Empirical Analysis on the Spanish Market

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Author Info

  • Germa Bel
  • Laia Domenech

Abstract

Advertising has an important role in the media industry. In a context where advertising generates a negative externality for viewers, this article analyzes the factors explaining ad prices in free TV empirically. This article also considers the participation of government-owned broadcasters in the Spanish market. This study finds that private ownership is associated with higher advertising prices. The results show a positive relation between audience size and ad price and a negative relation between ad price and advertising time. In addition, this study finds that higher prices are associated with the percentage of the population between 14 and 29 years old and the regional gross domestic product per capita in the broadcast area.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/08997760903129440
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Media Economics.

Volume (Year): 22 (2009)
Issue (Month): 3 ()
Pages: 164-183

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Handle: RePEc:taf:jmedec:v:22:y:2009:i:3:p:164-183

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Web page: http://www.tandfonline.com/HMEC20

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Cited by:
  1. Francisco Martínez-Sánchez & Miguel González-Maestre, 2010. "The role of program quality and publicly-owned platforms in the free to air broadcasting industry," Working Papers. Serie AD 2010-19, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  2. Miguel González-Maestre & Francisco Martínez-Sánchez, 2014. "The role of platform quality and publicly owned platforms in the free-to-air broadcasting industry," SERIEs, Spanish Economic Association, vol. 5(1), pages 105-124, March.

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