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

    More about this item

    Keywords

    Communications; Media; Internet; News; Advertising;
    All these keywords.

    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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