What Influences Advertising Price in Television Channels?: An Empirical Analysis on the Spanish Market

Advertising has an important role in the media industry. In a context where advertising generates a negative externality for viewers, this article analyzes the factors explaining ad prices in free TV empirically. This article also considers the participation of government-owned broadcasters in the S...

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Bibliographic Details
Published in:Journal of media economics 2009-07, Vol.22 (3), p.164-183
Main Authors: Bel, Germà, Domènech, Laia
Format: Article
Language:English
Subjects:
Advertising
Advertising rates
Correlation analysis
Discriminant analysis
Externality
Per capita
Prices
Studies
Television broadcasting
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Summary:Advertising has an important role in the media industry. In a context where advertising generates a negative externality for viewers, this article analyzes the factors explaining ad prices in free TV empirically. This article also considers the participation of government-owned broadcasters in the Spanish market. This study finds that private ownership is associated with higher advertising prices. The results show a positive relation between audience size and ad price and a negative relation between ad price and advertising time. In addition, this study finds that higher prices are associated with the percentage of the population between 14 and 29 years old and the regional gross domestic product per capita in the broadcast area.
ISSN:0899-7764
1532-7736
DOI:10.1080/08997760903129440