The Economics of the Online Advertising Industry (2008)
| Venue: | REVIEW OF NETWORK ECONOMICS VOL.7, ISSUE 3 – SEPTEMBER 2008 |
| Citations: | 34 - 0 self |
BibTeX
@MISC{Evans08theeconomics,
author = {David S. Evans},
title = { The Economics of the Online Advertising Industry},
year = {2008}
}
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Abstract
Internet-based technologies are revolutionizing the stodgy $625 billion global advertising industry. There are a number of public policy issues to consider. Will a single ad platform emerge or will several remain viable? What are the consequences of alternative market structures for a web economy that is increasingly based on selling eyeballs to advertisers? This article describes the online advertising industry. The industry is populated by a number of multi-sided platforms that facilitate connecting advertisers to viewers. Search-based advertising platforms, the most developed of these, have interesting economic features that result from the combination of keyword bidding by advertisers and single-homing.
