The Impact of Advertising on Media Bias
Esther Gal-or, Tansev Geylani, Tuba Pinar Yildirim
Journal of Marketing Research · 2012 · Volume 49 · Issue 1
Abstract
In this study, the authors investigate the role of advertising in affecting the extent of bias in the media. When making advertising choices, advertisers evaluate both the size and the composition of the readership of the different outlets. The profile of the readers matters because advertisers want to target readers who are likely to be receptive to their advertising messages. The authors demonstrate that when advertising supplements subscription fees, it may serve as a polarizing or moderating force, contingent on the extent of heterogeneity among advertisers in appealing to readers having different political preferences. When heterogeneity is large, each advertiser chooses a single outlet for placing advertisements (single-homing), and greater polarization arises in comparison to when the media outlet relies on subscription fees only for revenues. In contrast, when heterogeneity is small, each advertiser chooses to place advertisements in multiple outlets (multihoming) and reduces polarization results.
Keywords
media competition, bias in news, advertising, two-sided markets
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