American Economic Review Vol. 99 No. 2 2009
Online Ad Auctions
Abstract
I describe how search engines sell ad space using an auction. I analyze advertiser behavior in this context using elementary price theory and derive a simple way to estimate the producer surplus generated by online search advertising. It appears that the estimated value of online advertising tends to be between 2 and 2.3 times advertising expenditures. JEL: D44 (Auctions), D21 (Firm Behavior)
- DOI
- 10.1257/aer.99.2.430
- Volume
- 99
- Issue
- 2
- Pages
- 430-434
- Language
- en
- Sources
- bibtex:phds-export.bib crossref openalex