
newspapers. In particular, newspapers increase subscription prices, sacrifice circulation,
and set lower ad prices (see
Seamans and Zhu, 2014).
After television advertising, Internet advertising has become the most important
medium in terms of ad revenues, at least in the US. As
Figure 10.2 illustrates, in 2012
advertising revenues for Internet media were close to 37 billion US$. As in other media,
advertising can play different roles for advertisers. It can inform about product availabil-
ity, price, and product characteristics; it may allow consumers to draw inferences about
product characteristics (advertising as a signal:
Milgrom and Roberts, 1986; ...