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Advertising types cross-network effects on two sided platforms

Author

Listed:
  • Veronika A. Khlyupina

    (HSE University, Nizhny Novgorod, Russia)

  • Svetlana V. Golovanova

    (HSE University, Nizhny Novgorod, Russia)

  • Eduardo Pontual Ribeiro

    (Federal University of Rio de Janeiro, Rio de Janeiro, Brazil)

Abstract

Broadcast TV is a well-known example of a two-sided platform where cross network effects on the viewer and advertising sides interact. Like many platforms, it is advertiser-financed. While the literature shows that viewers dislike advertising, we explore a unique data set and distinguish between paid and non-paid (informative) ads. Cross-network effects' estimates show that the latter carry a positive network effect on viewership. We also explore a significant change in public interest for more information in TV content in Russia in 2022 to estimate structural changes to cross-network effects. The results indicate that negative paid ads' cross-network effects on viewership demand become stronger while positive non-paid (information) ads cross-network effects become weaker, even conditional on TV programing changes. Symmetrically, on the other side of the platform, advertisers value viewership less after the preference change.

Suggested Citation

  • Veronika A. Khlyupina & Svetlana V. Golovanova & Eduardo Pontual Ribeiro, 2025. "Advertising types cross-network effects on two sided platforms," Russian Journal of Economics, ARPHA Platform, vol. 11(3), pages 331-348, September.
    • Handle: RePEc:arh:jrujec:v:11:y:2025:i:3:p:331-348
    DOI: 10.32609/j.ruje.11.159114
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    Keywords

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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