Advertising types cross-network effects on two sided platforms

Russian Journal of Economics. 2025. Vol. 11. No. 3. P. 331–348.

Veronika A. Khlyupina, Svetlana V. Golovanova, Pontual Ribeiro E.

Broadcast TV is a well-known example of a two-sided platform where cross network effects on the viewer and advertising sides interact. Like many platforms, it is advertiser-financed. While the literature shows that viewers dislike advertising, we explore a unique data set and distinguish between paid and non-paid (informative) ads. Cross-network effects’ estimates show that the latter carries a positive network effect on viewership. We also explore a significant change in public interest for more information in TV content in Russia in 2022 to estimate structural changes to cross-network effects. The results indicate that negative paid ads’ cross-network effects on viewership demand become stronger while positive non-paid (information) ads cross-network effectsbecome weaker, even conditional on TV programing changes. Symmetrically, on the other side of the platform, advertisers value viewership less after the preference change.

Keywords: реклама, телевидение, advertising, оценка спроса, demand estimation, перекрестные сетевые эффекты, двусторонние платформы, broadcast TV, cross-network effects, two-sided platforms

Publication based on the results of: Restructuring of the Russian Companies, Industries and Markets in Response to New Global Challenges (2025)