Economics of advertising: Emerging functions of Internet advertising |
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Authors: | Ling Marcus Lawler Kevin McBain Norman Moscardini Alfredo |
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Affiliation: | (1) Sunderland Business School, University of Sunderland, UK;(2) School of Computing and Information Systems, University of Sunderland, Sunderland, SR6 0DD, UK |
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Abstract: | This paper intends to highlight the emerging force of the Internet as an advertising medium. The economic functions of Internet advertising are examined. Moreover, the paper aims to evaluate the relative impacts on optimal advertising models. Our discussion also includes analysis of associated price-cost margins with respect to optimal advertising budgets and strategic reactions. All in all, this paper should provide entrepreneurs with more crucial knowledge of advertising strategies offered by the new medium. Moreover, it will equip scientists and technologists with more insights into the economic aspects and strategic values of Internet advertising. This revised version was published online in August 2006 with corrections to the Cover Date. |
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