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The Economics Of The Online Advertising Industry.

Publication: Mondaq Business Briefing
Publication Date: 24-JAN-08 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
Online advertising has grown rapidly in the last decade. It now accounts for almost a seventh of all advertising spending and contributes to the preponderance of revenues for most websites. It is projected to increase sharply as more consumers spend time online on their personal computers and as additional devices such as mobile phones and televisions are connected to the web. This article describes the market structure of the online advertising industry and several complex economic aspects of it. Using the lens of the new economics of multi-sided platforms it examines search-based advertising platforms, as well as platforms that facilitate the buying and selling of advertising space on websites. The unique features of online advertising include the use of Internet-based technologies and data collection mechanisms to target and track specific individuals, and to...

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