The advertising-financed business model in two-sided media markets - Archive ouverte HAL Accéder directement au contenu
Chapitre D'ouvrage Année : 2015

The advertising-financed business model in two-sided media markets

Bruno Jullien

Résumé

This chapter focuses on the economic mechanisms at work in recent models of advertising finance in media markets developed around the concept of two-sided markets. The objective is to highlight new and original insights from this approach, and to clarify the conceptual aspects. The chapter first develops a canonical model of two-sided markets for advertising, where platforms deliver content to consumers and resell their “attention” to advertisers. A key distinction is drawn between free media and pay media, where the former result from the combination of valuable consumer attention and low ad-nuisance cost. The first part discusses various conceptual issues such as equilibrium concepts and the nature of inefficiencies in advertising markets, and concrete issues such as congestion and second-degree discrimination. The second part is devoted to recent contributions on issues arising when consumers patronize multiple platforms. In this case, platforms can only charge incremental values to advertisers, which reduce their market power and affect their price strategies and advertising levels. The last part discusses the implications of the two-sided nature of the media markets for the choice of content and diversity.
Fichier principal
Vignette du fichier
Jullien_35045.pdf (709.24 Ko) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

hal-02866192 , version 1 (12-06-2020)

Identifiants

  • HAL Id : hal-02866192 , version 1

Citer

Simon P. Anderson, Bruno Jullien. The advertising-financed business model in two-sided media markets. Anderson, Simon P; Waldfogel, Joel; Strömberg, David. Handbook of Media Economics, 1, Elsevier, pp.41-90, 2015, 9780444636959. ⟨hal-02866192⟩
48 Consultations
249 Téléchargements

Partager

Gmail Facebook X LinkedIn More