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Rev Ind Organ (2014) 44:113114
DOI 10.1007/s11151-013-9400-1
Published online: 13 August 2013 Springer Science+Business Media New York 2013
Keywords Internet advertising Internet economics Online advertising Digital
JEL Classication 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 Internets 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 ofine and online advertising and analyze how these differences affect how rms use Internet advertising to inuence consumer spending.
The rst 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...