Pricing web advertisement: Display ads V.S. contextual ads

Yung-Ming Li*, Jhih Hua Jhang-Li

*Corresponding author for this work

Research output: Contribution to conferencePaperpeer-review

Abstract

Most web sites provide display advertising and contextual advertising services simultaneously, which are the main ad formats in Internet. With multimedia format, the pricing of display ads is generally based on the occurrence of ad impressions. However, targeting their customers more accurately, contextual ads are performance based advertisements and are charged only if one visitor clicks a client's appointed ad. In this paper, we develop an economic model to examine the pricing strategy, profitability, and social efficiency of these two heterogeneous web advertising channels, with respect to different market structures.

Original languageEnglish
StatePublished - 1 Dec 2007
Event11th Pacific Asia Conference on Information Systems: Managing Diversity in Digital Enterprises, PACIS 2007 - Auckland, New Zealand
Duration: 3 Jul 20076 Jul 2007

Conference

Conference11th Pacific Asia Conference on Information Systems: Managing Diversity in Digital Enterprises, PACIS 2007
CountryNew Zealand
CityAuckland
Period3/07/076/07/07

Keywords

  • Competition
  • Contextual ads
  • Display ads
  • Pricing strategies
  • Web advertisement

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