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Local News Online: Aggregators, Geo‐Targeting and the Market for Local News

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  • Lisa M. George
  • Christiaan Hogendorn

Abstract

We examine how placement of geo‐targeted local news links on Google News affected local news consumption. Using a sample of news visits by 36,876 U.S. households before and after a Google News design change, we find that aggregation increased the level and share of local news consumed online. Magnitudes are modest: consumption of local news among heavy Google News users rose by 25% after the redesign, but from a low base. Geo‐targeting increased weekly consumption variety and reduced concentration among local outlets but did not raise overall consumption variety, suggesting that aggregators play a limited role in product discovery.

Suggested Citation

  • Lisa M. George & Christiaan Hogendorn, 2020. "Local News Online: Aggregators, Geo‐Targeting and the Market for Local News," Journal of Industrial Economics, Wiley Blackwell, vol. 68(4), pages 780-818, December.
    • Handle: RePEc:bla:jindec:v:68:y:2020:i:4:p:780-818
    DOI: 10.1111/joie.12245
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    References listed on IDEAS

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    1. George Lisa M, 2008. "The Internet and the Market for Daily Newspapers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-33, July.
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    6. Lesley Chiou & Catherine Tucker, 2017. "Content aggregation by platforms: The case of the news media," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(4), pages 782-805, December.
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    Citations

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    Cited by:

    1. George, Lisa M. & Peukert, Christian, 2019. "Social networks and the demand for news," Information Economics and Policy, Elsevier, vol. 49(C).
    2. Andrea Prat, 2018. "Media Power," Journal of Political Economy, University of Chicago Press, vol. 126(4), pages 1747-1783.
    3. Jeon, Doh-Shin, 2018. "Economics of News Aggregators," TSE Working Papers 18-912, Toulouse School of Economics (TSE).
    4. Joan Calzada & Ricard Gil, 2020. "What Do News Aggregators Do? Evidence from Google News in Spain and Germany," Marketing Science, INFORMS, vol. 39(1), pages 134-167, January.
    5. Alexandre de Cornière & Miklos Sarvary, 2023. "Social Media and News: Content Bundling and News Quality," Management Science, INFORMS, vol. 69(1), pages 162-178, January.
    6. Du, Kai & Song, Jinyuan, 2022. "The impact of geotargeting on household information acquisition: Evidence from a Google News redesign," Research Policy, Elsevier, vol. 51(10).
    7. Matthew Chesnes & Weijia (Daisy) Dai & Ginger Zhe Jin, 2017. "Banning Foreign Pharmacies from Sponsored Search: The Online Consumer Response," Marketing Science, INFORMS, vol. 36(6), pages 879-907, November.
    8. Joan Calzada & Nestor Duch-Brown & Ricard Gil, 2021. "Do search engines increase concentration in media markets?," UB School of Economics Working Papers 2021/415, University of Barcelona School of Economics.
    9. Doh-Shin Jeon & Nikrooz Nasr, 2016. "News Aggregators and Competition among Newspapers on the Internet," American Economic Journal: Microeconomics, American Economic Association, vol. 8(4), pages 91-114, November.
    10. Jörg Claussen & Christian Peukert & Ananya Sen, 2019. "The Editor vs. the Algorithm: Returns to Data and Externalities in Online News," CESifo Working Paper Series 8012, CESifo.
    11. Tim Meyer & Anna Kerkhof & Carmelo Cennamo & Tobias Kretschmer, 2022. "Competing for Attention on Information Platforms: The Case of News," CESifo Working Paper Series 9832, CESifo.
    12. Anderson, Simon & Waldfogel, Joel, 2015. "Preference Externalities in Media Markets," CEPR Discussion Papers 10835, C.E.P.R. Discussion Papers.

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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