The Future on online advertising is a VIDEO

This is a very useful video to give you the idea about the importance of online advertising industry.

http://www.youtube.com/watch?v=5rtiHiGmoxk

Online advertising: Pay-per-view versus pay-per-click — A comment

Abstract

We analyze the choice of pay-per-view (PPV) and pay-per-click (PPC) when a web publisher is a price taker in the market for advertising banners, and the number of visits is decreasing in advertising. Several pricing recommendations are developed. First, the web publisher should always choose either PPV or PPC. Specifically, if the click-through rate is less than the ratio of PPV to PPC prices, then PPV should be chosen, and vice versa. Furthermore, if the click-through rate is exogenous, then the optimal amount of advertising is the same for both pricing methods. Finally, if the click-through rate is endogenous, the amount of advertising will be different under PPV and PPC

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Kenneth Fjell- Journal of Revenue and Pricing Management (2009) 8, 200–206. doi:10.1057/rpm.2008.39; published online 21 November 2008

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http://www.ingentaconnect.com/content/pal/rpm/2009/00000008/F0020002/art00009

The Online Advertising Industry: Economics, Evolution, and Privacy

Abstract:

Online advertising accounts for almost 9 percent of all advertising in the United States. This share is expected to increase as more media is consumed over the Internet and as more advertisers shift spending to online technologies. The expansion of Internet-based advertising is transforming the advertising business by providing more efficient methods of matching advertisers and consumers and transforming the media business by providing a source of revenue for online media firms that competes with traditional media firms. The precipitous decline of the newspaper industry is one manifestation of the symbiotic relationship between online content and advertising. Online-advertising is provided by a series of interlocking multisided platforms that facilitate the matching of advertisers and consumers. These intermediaries increasingly make use of detailed individual data, predictive methods, and matching algorithms to create more efficient matches between consumers and advertisers. Some of their methods raise public policy issues that require balancing benefits from providing consumers more valuable advertising against the possible loss of valuable privacy.

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Evans, David S. 2009. "The Online Advertising Industry: Economics, Evolution, and Privacy." Journal of Economic Perspectives, 23(3): 37–60.


DOI:10.1257/jep.23.3.37

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http://www.aeaweb.org/articles.php?doi=10.1257/jep.23.3.37

Survey of internet users’ attitudes toward internet advertising

A B S T R A C T

Many have speculated about the current state of Internet advertising (IA), how it compares to advertising in general (GA), and its implications for traditional marketing models and practices.

Although many estimates exist regarding who uses the Internet as well as guidelines about how best to design IA, little is known about Internet users’ attitudes toward IA, much less what characterizes these attitudes. To test this, a national sample of over 400 participants with at least some exposure to the Internet was surveyed. The results revealed no majority opinion of IA approximately a third of respondents liked, disliked, and felt neutrally toward IA, respectively. A regression analysis indicated that enjoyment of looking at Internet advertisements, its informativeness, and its utility for making behavioral (purchasing) decisions.

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Authors: Ann E. Schlosser Sharon Shavitt Alaina Kanfer


© 1999 John Wiley & Sons, Inc. and Direct Marketing Educational Foundation, Inc.

CCC 1094-9968/99/030034-21

JOURNAL OF INTERACTIVE MARKETING

VOLUME 13 / NUMBER 3 / SUMMER 1999

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http://www.business.uiuc.edu/Shavitt/pdf%20files/surveyinternet_copy%281%29.pdf