Advertising and Content Differentiation: Evidence from YouTube
Anna Kerkhof
Abstract:Many media outlets depend on advertising revenue to finance their operations, but the effect of advertising on media outlets’ content choice is largely unexplored. This paper exploits two institutional features from YouTube to show that an exogenous increase in the feasible amount of advertising induces YouTubers to differentiate their video content from their competitors. A plausible mechanism is that YouTubers avoid competition: Viewers typically perceive advertising as a nuisance and therefore as an implici… Show more
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