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

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Abstract

We examine how placement of geo-targeted local news links on Google News affects online local news consumption. Using a sample of news visits by 43087 US households before and after a Google News design change, we find that aggregation increases both the level and the share of local news consumed online. Magnitudes are small: local news visits increase by less than 1 percent and the likelihood of a local news visit increases by 4-6 percent. The redesign also increases the local share of visits to outlets, indicating that aggregation alters not only the size but also the composition of the local media audience.

Suggested Citation

  • Lisa M. George & Christiaan Hogendorn, 2014. "Local News Online: Aggregators, Geo-Targeting and the Market for Local News," Economics Working Paper Archive at Hunter College 443, Hunter College Department of Economics.
    • Handle: RePEc:htr:hcecon:443
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    Cited by:

    1. Jeon, Doh-Shin, 2018. "Economics of News Aggregators," TSE Working Papers 18-912, Toulouse School of Economics (TSE).
    2. 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.
    3. 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.
    4. George, Lisa M. & Peukert, Christian, 2019. "Social networks and the demand for news," Information Economics and Policy, Elsevier, vol. 49(C).
    5. 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).
    6. 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.
    7. Anderson, Simon & Waldfogel, Joel, 2015. "Preference Externalities in Media Markets," CEPR Discussion Papers 10835, C.E.P.R. Discussion Papers.
    8. 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.
    9. Andrea Prat, 2018. "Media Power," Journal of Political Economy, University of Chicago Press, vol. 126(4), pages 1747-1783.
    10. 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.
    11. 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.
    12. 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.

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    Keywords

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    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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