Technology Shocks in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers

Seamans, Robert; Zhu, Feng

doi:10.2139/ssrn.1694622

Cited by 32 publications

(21 citation statements)

References 85 publications

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“…The debate reflects how newspapers serve as a multi-sided platform or network by bringing together readers and advertisers (Rysman, 2009;Chandra, 2009;Seamans and Zhu, 2011).…”

Section: Introductionmentioning

confidence: 99%

Paywalls and the demand for news

Chiou

Tucker

2013

Information Economics and Policy

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“…The debate reflects how newspapers serve as a multi-sided platform or network by bringing together readers and advertisers (Rysman, 2009;Chandra, 2009;Seamans and Zhu, 2011).…”

Section: Introductionmentioning

confidence: 99%

Paywalls and the demand for news

Chiou

Tucker

2013

Information Economics and Policy

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“…Although not exclusively, he also highlights classified ads as Berte & De Bens (2008) do in their comparable analysis of the Belgium market. Seamans & Zhu (2010) present an empirical and economic study of changing pricing strat-egies of U.S. local newspapers classified ads in the face of the market entry by Craigslist (a website hosting classified ads), finding substitution tendencies. Different from the other studies in this branch of literature, Seamans & Zhu (2010) use the two-sided markets framework for their analysis.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Seamans & Zhu (2010) present an empirical and economic study of changing pricing strat-egies of U.S. local newspapers classified ads in the face of the market entry by Craigslist (a website hosting classified ads), finding substitution tendencies. Different from the other studies in this branch of literature, Seamans & Zhu (2010) use the two-sided markets framework for their analysis. Although this literature does focus on newspaper versus online advertising, it differs from our research because it does not take into account industry-specific patterns and effects on the advertisers' side.…”

Section: Literature Reviewmentioning

confidence: 99%

Newspaper vs. Online Advertising – Is There a Niche for Newspapers in Modern Advertising Markets?

Lindstädt

Budzinski

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractNewspapers have experienced declining circulation figures and declining advertising revenues for several years. In particular, declining advertising figures put a threat on newspapers -this is especially severe in the US where 73% of their revenues are generated through advertising. On the advertising side many companies have expanded their advertising expenditure towards online. Consequently, there are concerns about online advertising substituting newspaper advertising -in the same way as it has been feared for many years for the readership side. Both possible effects might put a threat on the further existence of (print) newspapers. However, though the internet -compared to newspapersoffers a variety of advantages for advertising companies, substitution tendencies cannot be generalized. In particular, we argue that newspaper advertising offers great benefits for the retailing industry. Consequently, we believe that retail advertising offers a niche for regional and local newspapers that can be expected to represent a sustainable segment of complementarity within the otherwise predominantly substitutional advertising markets. The paper substantiates this argument by applying the economic theory of advertising -in particular the differentiation between persuasive/complementary and informative advertising. The latter one presents the reason for retailers to continue advertising in newspapers. Subsequently, we conclude that no complete substitution between newspaper and online advertising can be expected to take place on the advertising side in the foreseeable future.

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“…Although not exclusively, he also highlights classified ads as Berte & De Bens (2008) do in their comparable analysis of the Belgium market. Seamans & Zhu (2010) present an empirical and economic study of changing pricing strategies regarding classified ads in U.S. local newspapers in the face of the market 10 entry by Craigslist (a website hosting classified ads), finding substitution tendencies. Different from the other studies in this branch of literature, Seamans & Zhu (2010) use the two-sided markets framework for their analysis.…”

mentioning

confidence: 99%

“…Seamans & Zhu (2010) present an empirical and economic study of changing pricing strategies regarding classified ads in U.S. local newspapers in the face of the market 10 entry by Craigslist (a website hosting classified ads), finding substitution tendencies. Different from the other studies in this branch of literature, Seamans & Zhu (2010) use the two-sided markets framework for their analysis. Although this literature does focus on newspaper versus online advertising, it does not take into account industry-specific patterns and effects on the advertisers' side.…”

mentioning

confidence: 99%

Newspaper and Internet Display Advertising – Co-Existence or Substitution?

Lindstädt

Budzinski

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractNewspapers have been experiencing declining circulation figures and diminishing advertising revenues for several years -both effects might pose a threat to the continuing existence of (print) newspapers. In an earlier paper, Lindstädt & Budzinski (2011) argued from a theoretical viewpoint that industry-specific patterns exist that determine substitution or complementation effects between internet and newspaper advertising. It was argued that retail advertising, in particular, may offer a niche for regional/local newspapers that can be expected to present a sustainable segment of complementarity along with the otherwise mostly substitutional advertising markets. This paper empirically tests these hypotheses by analyzing advertising spending data for newspaper and internet display advertising of 13 different industries in the U.S. from 2001-2010. We find evidence for some of the hypotheses. Whereas some industries showed clear substitution effects between internet display and newspaper advertising, the majority of our hypotheses could be only partly rejected: newspaper substitution effects could be observed, however, in the direction to traditional media platforms instead of internet display advertising. For two retail-sub-industries, the hypotheses could not be rejected for the analyzed period.

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Technology Shocks in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers

Cited by 32 publications

References 85 publications

Paywalls and the demand for news

Paywalls and the demand for news

Newspaper vs. Online Advertising – Is There a Niche for Newspapers in Modern Advertising Markets?

Newspaper and Internet Display Advertising – Co-Existence or Substitution?

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