| Popis: |
Viewership of traditional television has decreased in the past decade, particularly among younger viewers. This paper studies the impact of this decline on the U.S. TV advertising industry using a two-sided model that explicitly considers viewers’ demographics. The model incorporates viewers, who choose which channel to watch; advertisers, who choose how many advertising views to purchase in each demographic group; and channels, who choose how many advertisements to show during their programs. I use the model to evaluate how viewership declines affect demographic-specific prices per ad view, advertisers from different industries, TV channels, and viewers. I additionally analyze how accounting for demographic segmentation could affect the evaluation of mergers between TV conglomerates. |
