Introduction: The Economics of Internet Advertising

Introduction: The Economics of Internet Advertising Rev Ind Organ (2014) 44:113–114 DOI 10.1007/s11151-013-9400-1 Avi Goldfarb · Victor J. Tremblay Published online: 13 August 2013 © Springer Science+Business Media New York 2013 Keywords Internet advertising · Internet economics · Online advertising · Digital JEL Classification M37 Although television remains the largest advertising medium with a 40 % share of total advertising spending, Internet advertising has made dramatic gains in market share. In 1997 the Internet’s share was less than 1 %; but that share has risen to approximately 20 % today. The papers in this series highlight some of the differences between offline and online advertising and analyze how these differences affect how firms use Internet advertising to influence consumer spending. The first paper by Avi Goldfarb is a survey of the economics of Internet advertising. It discusses how recent work on Internet advertising broadens our general knowledge of the economics of advertising. Goldfarb argues that the fundamental feature of Internet advertising is that it lowers the costs for advertisers to identify and target potential customers. In particular, firms have the ability to collect information about a person’s past actions, and then use that information to target ads to consumers who are most likely to be Review of Industrial Organization Springer Journals

Introduction: The Economics of Internet Advertising

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Copyright © 2013 by Springer Science+Business Media New York
Economics / Management Science; Industrial Organization; Microeconomics
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