Internet advertising:: Market structure and new pricing methods

In this paper the Internet advertising market is analyzed. Data and estimates confirm that the Web represents a real threat to television and newspapers. Therefore, the main characteristics of the advertising market are described in order to point out the differences between Internet and traditional mass media. In particular, pricing methods appear to be the most peculiar innovation carried out by on-line advertisers. It is shown how these new business models may substantially change the quantity of advertising which maximizes web publishers' profits.