Audience Characteristics and Bundling: A Hedonic Analysis of Magazine Advertising Rates

Koschat, Martin A.; Putsis, William P.

doi:10.1509/jmkr.39.2.262.19083

Cited by 40 publications

(22 citation statements)

References 27 publications

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“…When we do include measures of content or quality on the right hand side, the estimated coefficients did not turn out to be statistically or economically significant. This confirms a similar finding by Koschat and Putsis (2002).…”

supporting

confidence: 92%

“…Advertisers may receive discounts from the list price (sometimes referred to as the "rate card price") and these may be bigger for frequent advertisers, or those who buy bulk advertising space across various media. According to industry participants, advertising rates almost never deviated from list prices during the period we consider, an observation that is in accordance with Koschat and Putsis (2002) who find a correlation between transaction prices and list prices of 0.975 in their data for the US. As a practical matter, there is no direct solution to this in our analysis, as transaction prices are rarely revealed.…”

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confidence: 89%

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Targeted Advertising in Magazine Markets and the Advent of the Internet

Chandra

Kaiser

2014

Management Science

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This paper examines how the ability of media firms to engage in targeted advertising has changed with increased competition from online channels. We find that the use of the Internet by magazine readers, as well as the availability of companion websites, increase the value of targeted advertising. This indicates a complementarity between offline and online media with respect to targeting. We provide supporting evidence for this result and argue that multi-homing consumers can enhance the value of targeted advertising, in contrast to the usual assumption that multiple advertising messages are redundant.JEL-classification: L11, L82, M37 ¶ We thank Jürgen Storp of Initiative Media, a global media and media planning company, for very insightful comments. We also gratefully acknowledge helpful comments received at workshops and seminars held at Copenhagen

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supporting

confidence: 92%

supporting

confidence: 89%

Targeted Advertising in Magazine Markets and the Advent of the Internet

Chandra

Kaiser

2014

Management Science

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“…Koschat and Putsis (2002) attempt to estimate the effect of unbundling in magazine advertising. They find that, in terms of the pricing of magazine advertising space, targeting specific reader segments is generally preferable to offering advertisers all the readers.…”

Section: Managerial Implications and Conclusionmentioning

confidence: 99%

An Empirical Analysis of Search Engine Advertising: Sponsored Search in Electronic Markets

2009

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T he phenomenon of sponsored search advertising-where advertisers pay a fee to Internet search engines to be displayed alongside organic (nonsponsored) Web search results-is gaining ground as the largest source of revenues for search engines. Using a unique six-month panel data set of several hundred keywords collected from a large nationwide retailer that advertises on Google, we empirically model the relationship between different sponsored search metrics such as click-through rates, conversion rates, cost per click, and ranking of advertisements. Our paper proposes a novel framework to better understand the factors that drive differences in these metrics. We use a hierarchical Bayesian modeling framework and estimate the model using Markov Chain Monte Carlo methods. Using a simultaneous equations model, we quantify the relationship between various keyword characteristics, position of the advertisement, and the landing page quality score on consumer search and purchase behavior as well as on advertiser's cost per click and the search engine's ranking decision. Specifically, we find that the monetary value of a click is not uniform across all positions because conversion rates are highest at the top and decrease with rank as one goes down the search engine results page. Though search engines take into account the current period's bid as well as prior click-through rates before deciding the final rank of an advertisement in the current period, the current bid has a larger effect than prior clickthrough rates. We also find that an increase in landing page quality scores is associated with an increase in conversion rates and a decrease in advertiser's cost per click. Furthermore, our analysis shows that keywords that have more prominent positions on the search engine results page, and thus experience higher click-through or conversion rates, are not necessarily the most profitable ones-profits are often higher at the middle positions than at the top or the bottom ones. Besides providing managerial insights into search engine advertising, these results shed light on some key assumptions made in the theoretical modeling literature in sponsored search.

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“…The existing literature focuses on the link between readership characteristics and ad rates across publishers, which provides one view of the source of differentiation (Thompson, 1989;Koschat and Putsis, 2002). Another possibility is that other (non-readership) aspects also influence the choice of magazines, such as the type of service and customization each magazine offers.…”

Section: Implied Structure Of Prices-cost Markupsmentioning

confidence: 99%

Price structure in two-sided markets: Evidence from the magazine industry

Kaiser

Wright

2006

International Journal of Industrial Organization

295

184

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We present and estimate a model of competition in a two-sided market: the market for magazine readership and advertising. Using data on magazines in Germany, we find evidence that magazines have properties of two-sided markets. The results are consistent with the perception that prices for readers are dsubsidizedT and that magazines make all their money from advertisers. Consistent with advertisers valuing readers more than readers value advertisements, our results imply that higher demand on the reader side increases ad rates, but that higher demand on the advertising side decreases cover prices. D 2005 Elsevier B.V. All rights reserved. JEL classification: C33; L11

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Audience Characteristics and Bundling: A Hedonic Analysis of Magazine Advertising Rates

Cited by 40 publications

References 27 publications

Targeted Advertising in Magazine Markets and the Advent of the Internet

Targeted Advertising in Magazine Markets and the Advent of the Internet

An Empirical Analysis of Search Engine Advertising: Sponsored Search in Electronic Markets

Price structure in two-sided markets: Evidence from the magazine industry

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