June 7, 2015

Targeted Advertising Considered Harmful

When a firm signals by advertising, it demonstrates to consumers that its production costs and the demand for its product are such that advertising costs can be recovered. In order for advertising to be an effective signal, high-quality firms must be able to recover advertising costs while low-quality firms cannot.

Great read about ad blocking - and why we do it.

ZGP (http://zgp.org/targeted-advertising-considered-harmful/)

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