{"title":"Externalities across advertising markets","authors":"Rémi Devaux, Olivier Bomsel","doi":"10.1080/08997764.2022.2099875","DOIUrl":null,"url":null,"abstract":"ABSTRACT This paper analyzes externalities generated by offline advertising campaigns on the performance of online ads. Using advertising data on a panel of firms in the hotel industry, we estimate how a firm’s offline, display, and competing ad campaigns impact the effectiveness of Google and Facebook advertising. We find a positive effect of traditional mass-media campaigns on Google clicks. Advertising from competitors does not affect Google ad performance but it increases advertising prices, suggesting keyword poaching. Further analyses hint that Google’s monopoly power and auction system allow free-riding on advertising externalities. Although we find similar positive effects on Facebook ads, they are not significant.","PeriodicalId":29945,"journal":{"name":"JOURNAL OF MEDIA ECONOMICS","volume":"34 1","pages":"152 - 175"},"PeriodicalIF":0.4000,"publicationDate":"2022-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"JOURNAL OF MEDIA ECONOMICS","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1080/08997764.2022.2099875","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"COMMUNICATION","Score":null,"Total":0}
引用次数: 0
Abstract
ABSTRACT This paper analyzes externalities generated by offline advertising campaigns on the performance of online ads. Using advertising data on a panel of firms in the hotel industry, we estimate how a firm’s offline, display, and competing ad campaigns impact the effectiveness of Google and Facebook advertising. We find a positive effect of traditional mass-media campaigns on Google clicks. Advertising from competitors does not affect Google ad performance but it increases advertising prices, suggesting keyword poaching. Further analyses hint that Google’s monopoly power and auction system allow free-riding on advertising externalities. Although we find similar positive effects on Facebook ads, they are not significant.
期刊介绍：
The Journal of Media Economics publishes original research on the economics and policy of mediated communication, focusing on firms, markets, and institutions. Reflecting the increasing diversity of analytical approaches employed in economics and recognizing that policies promoting social and political objectives may have significant economic impacts on media, the Journal encourages submissions reflecting the insights of diverse disciplinary perspectives and research methodologies, both empirical and theoretical.
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