Experts have been quick to write obits for the print news medium and have bemoaned the limited advertising options it provides. Researchers Susan Athey, Emilio Calvano and Joshua Gans created an experimental model to see how readers interact with ad content across media. The results of the experiment mirror the changes in the print ad market with the coming of the internet, they say. Some significant conclusions were that with readers being able to switch between media, advertising revenues fall across board. Also, using tracking software (like cookies on the Internet) to gauge reader interests doesn’t contribute much towards raising revenues or ad prices. The researchers also found that introducing paywalls on websites does not just bring down readership but also pulls ad prices down.

 

Title: The impact of the Internet on advertising markets for news media.

Source: The National Bureau of Economic Research