Interactive Advertising: The Case of Skippable Ads

Digital media platforms commonly use the skippable ad format, which gives a viewer the option to skip part of an advertisement after seeing some limited information, and jump directly to the desired content. It also enables these platforms to charge advertisers only when viewers attend to the entire ad. We develop a dynamic model of a viewer receiving incremental information from the advertiser and embed it in a two-sided market setting with an...