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Online Advertising

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Author(s)
Goldfarb, Avi
•
Tucker, Catherine Elizabeth
Date Issued
March 2011
Journal
Advances in Computers
Publisher
Elsevier
Citation
Goldfarb, Avi, and Catherine Tucker. “Online Advertising.” Advances in Computers (2011): 289–315.
Version
Author's final manuscript
Abstract
This chapter explores what makes online advertising different from traditional advertising channels. We argue that online advertising differs from traditional advertising channels in two important ways: measurability and targetability. Measurability is higher because the digital nature of online advertising means that responses to ads can be tracked relatively easily. Targetability is higher because data can be automatically tracked at an individual level, and it is relatively easy to show different people different ads. We discuss recent advances in search advertising, display advertising, and social media advertising and explore the key issues that arise for firms and consumers from measurability and targetability. We then explore possible public policy consequences, with an in depth discussion of the implications for consumer privacy.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution
http://creativecommons.org/licenses/by-nc-nd/4.0/
Persistent DSpace Link
http://hdl.handle.net/1721.1/99167
DOI of Published Version
https://doi.org/10.1016/b978-0-12-385514-5.00006-9
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