Newspaper and internet display advertising - co-existence or substitution?
AbstractNewspapers have been experiencing declining circulation figures and diminishing advertising revenues for several years - both effects might pose a threat to the continuing existence of (print) newspapers. In an earlier paper, Lindstädt & Budzinski (2011) argued from a theoretical viewpoint that industryspecific patterns exist that determine substitution or complementation effects between internet and newspaper advertising. It was argued that retail advertising, in particular, may offer a niche for regional/local newspapers that can be expected to present a sustainable segment of complementarity along with the otherwise mostly substitutional advertising markets. This paper empirically tests these hypotheses by analyzing advertising spending data for newspaper and internet display advertising of 13 different industries in the U.S. from 2001-2010. We find evidence for some of the hypotheses. Whereas some industries showed clear substitution effects between internet display and newspaper advertising, the majority of our hypotheses could be only partly rejected: newspaper substitution effects could be observed, however, in the direction to traditional media platforms instead of internet display advertising. For two retail-sub-industries, the hypotheses could not be rejected for the analyzed period. --
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Bibliographic InfoPaper provided by Ilmenau University of Technology, Institute of Economics in its series Ilmenau Economics Discussion Papers with number 74.
Date of creation: 2012
Date of revision:
media economics; advertising; complementation; substitution; newspapers; internet;
Other versions of this item:
- Nadine Lindstädt & Oliver Budzinski, 2012. "Newspaper and Internet Display Advertising – Co-Existence or Substitution?," Working Papers 114/12, University of Southern Denmark, Department of Environmental and Business Economics.
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-10 (All new papers)
- NEP-COM-2012-12-10 (Industrial Competition)
- NEP-CUL-2012-12-10 (Cultural Economics)
- NEP-IND-2012-12-10 (Industrial Organization)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nadine Lindstädt & Oliver Budzinski, 2011.
"Newspaper vs. Online Advertising – Is There a Niche for Newspapers in Modern Advertising Markets?,"
113/11, University of Southern Denmark, Department of Environmental and Business Economics.
- Lindstädt, Nadine & Budzinski, Oliver, 2012. "Newspaper vs. online advertising - Is there a niche for newspapers in modern advertising markets?," Ilmenau Economics Discussion Papers 73, Ilmenau University of Technology, Institute of Economics.
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- Hsiang Iris Chyi & Dominic Lasorsa, 2002. "An Explorative Study on the Market Relation Between Online and Print Newspapers," Journal of Media Economics, Taylor & Francis Journals, vol. 15(2), pages 91-106.
- Dewenter, Ralf & Haucap, Justus, 2008. "Wettbewerb als Aufgabe und Problem auf Medienmaerkten: Fallstudien aus Sicht der "Theorie zweiseitiger Maerkte"," Working Paper 78/2008, Helmut Schmidt University, Hamburg.
- Lindstädt, Nadine & Budzinski, Oliver, 2012.
"Newspaper vs. online advertising - Is there a niche for newspapers in modern advertising markets?,"
Ilmenau Economics Discussion Papers
73, Ilmenau University of Technology, Institute of Economics.
- Nadine Lindstädt & Oliver Budzinski, 2011. "Newspaper vs. Online Advertising – Is There a Niche for Newspapers in Modern Advertising Markets?," Working Papers 113/11, University of Southern Denmark, Department of Environmental and Business Economics.
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