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Targeted Advertising in Magazine Markets

  • Ambarish Chandra

    (University of British Columbia)

  • Ulrich Kaiser

    (Institute for Strategy and Business Economics, University of Zurich)

We examine the scope and value of targeted advertising in the magazine industry. We use data on reader characteristics at individual media, in contrast to previous work that has needed to infer this information from aggregate data. Our results show a strong relationship between subscriber characteristics and advertising prices. Advertisers clearly value more homogenous groups of readers, measured according to income, gender and age. Our results explain recent trends of declining advertising expenditures in print media, in favor of increasing online advertising.

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Paper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 2010-02.

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Length: 27 pages
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:kud:kuieci:2010-02
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  1. Esther Gal-Or & Anthony Dukes, 2003. "Minimum Differentiation in Commercial Media Markets," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(3), pages 291-325, 09.
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