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 http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Introduction: The Economics of Internet Advertising

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Publisher
Springer US
Copyright
Copyright © 2013 by Springer Science+Business Media New York
Subject
Economics / Management Science; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-013-9400-1
Publisher site
See Article on Publisher Site

Abstract

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

Journal

Review of Industrial OrganizationSpringer Journals

Published: Aug 13, 2013

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