ABSTRACT
This chapter reviews research about advertising’s influence on editorial content and its implications for media management: (1) the economic nature of media as goods, (2) importance of advertising revenue in different media, (3) revenue models of media, (4) commercial pressure on media and influence of advertising on editorial content diversity and independence, and (5) advertising clutter and perception of editorial quality. It also examines the effects of other variations of advertising, such as product placement and native ads/sponsored content. This author proposes five advertising topics for media management and economics researchers to study in the next decade: (1) Is blurring or mixing editorial content and advertising a good thing for advertisers, media, and consumers? (2) Is advertising the culprit or scapegoat for editorial quality/integrity problems in media? (3) What is the audience’s receptiveness toward new forms of advertising in different media? (4) Should advertising still be the primary source of revenue for commercial media or direct payment is a better way to ensure quality content in the consumer’s interest? (5) What is the optimal amount of advertising and acceptable advertised product types in editorial media?
