Market for online content

[Chandanra65]

NAVIGANT

ECONOMICs

AN EMPIRICAL ANALYSIS OF THE VALUE OF INFORMATION
SHARING IN THE MARKET FOR ONLINE CONTENT

J. HoWARD BEALES AND JEFFREY A. EISENACH

January 2014

Howard Beales is a Professor at the Sch00l of buseconsumer Protection at the Federal Trade

Washington University, where he has been on

the faculty since 1988. He formerly was the Director of the

Commission. Jeffrey Eisenach is a Managing Director and Principal at Navigant Economics LLC, a Visiting Scholar
at the American Enterprise Institute for Public Policy Research, and an Adjunct Professor at George Mason
University Law School. The authors are grateful to Kevin Caves and Ben Ullman for research assistance and to the
Digital Advertising Alliance for support. The views expressed are exclusively their own.

CONTENTS

I. Introduction.

IL Advertising and the Market for Online Content

A. Size, Revenues, Growth... 2
B Structure, Business Models, and the Role of Advertising

The Value of Information Sharing: Prior Results 7

IV Model, Data, and Results..
A. Data and Model.

B Results and Interpretation 11

V. The Prevalence of Third-Party Advertising Technology Models: Empirical
Evidence..... ... 13

VI. Conclusion .16

Appendix s.........17