Markets in Everything: Media

From a new paper by Di Tella and Franceschelli:

We construct measures of the extent to which the 4 main newspapers in Argentina report government corruption in their front page during the period 1998-2007 and correlate them with the extent to which each newspaper is a recipient of government advertising. The correlation is negative. The size is considerable: a one standard deviation increase in monthly government advertising (0.26 million pesos of 2000) is associated with a reduction in the coverage of the government's corruption scandals by almost half of a front page per month, or 37% of a standard deviation in our measure of coverage. The results control for newspaper, month and individual corruption scandal fixed effects.

In Maharashtra, India a recent report indicates that transactions costs are considerably lower:

The deals were many and varied. A candidate had to pay different rates for ‘profiles,’ interviews, a list of ‘achievements,’ or even a trashing of his rival in some cases. (With the channels, it was “live” coverage, a ‘special focus,’ or even a team tracking you for hours in a day.) Let alone bad-mouthing your rival, this “pay-per” culture also ensures that the paper or channel will not tell its audiences that you have a criminal record. Over 50 per cent of the MLAs just elected in Maharashtra have criminal charges pending against them….

Hat tip to catfish for the second item.


I think it works the opposite in the United States. Interest groups, not the government, pay for advertising. Think about television news and cable. How many advertisements by interest groups do you see on cable and the news: healthcare proposals, card check, etc. To the extent the media reports on the media created event (e.g., teabaggers), the media also attracts the revenue from the issue add--a Chamber of Commerce advertisement.

That's the deal...Media has an important role in Marketing.

Marketing is a broad matter which everyone can use to earn money from it. It's very easy to use as long as you know how to do it on a right way.

Best Regards,
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