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ERIC Number: ED272864
Record Type: Non-Journal
Publication Date: 1986-Aug
Pages: 31
Abstractor: N/A
ISBN: N/A
ISSN: N/A
EISSN: N/A
Magazine and Newspaper Prices: The Effect of Advertising Revenue.
Norris, Vincent P.
A review of the literature reveals that publishers have suggested that magazines would cost twice as much and newspapers five times as much if they were not supported by advertising revenues. However, recent research indicates that this is not true. Although statistics regarding magazine publication are easier to obtain than those regarding newspaper publication, it does not appear that an increase in advertising revenues has resulted in substantially lower prices for consumers. A portion of ad revenues is used to pay for the additional paper and printing, for additional postage for heavier magazines, and for sales staff and the distribution of free copies to current and potential advertisers. The real costs of carrying ads in newspapers is also much higher than is suggested by the claim that newspapers would be more expensive without advertising. Furthermore, it has been shown that consumers are the ultimate source of all revenues, because when manufacturers and retailers pay for advertisements, they simply pass the incurred cost to consumers. (DF)
Publication Type: Speeches/Meeting Papers; Information Analyses; Opinion Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A