Search Engine Advertising: Channel Substitution When Pricing Ads to Context
AbstractWe explore substitution patterns across advertising platforms. Using data on the advertising prices paid by lawyers for 139 Google search terms in 195 locations, we exploit a natural experiment in "ambulance-chaser" regulations across states. When lawyers cannot contact clients by mail, advertising prices per click for search engine advertisements are 5%-7% higher. Therefore, online advertising substitutes for offline advertising. This substitution toward online advertising is strongest in markets with fewer customers, suggesting that the relationship between the online and offline media is mediated by the marketers' need to target their communications. This paper was accepted by Pradeep Chintagunta, marketing.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 57 (2011)
Issue (Month): 3 (March)
advertising and media; information systems; IT policy and management; electronic commerce; search engine advertising;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Nadine Lindstädt & Oliver Budzinski, 2011.
"Newspaper vs. Online Advertising – Is There a Niche for Newspapers in Modern Advertising Markets?,"
113/11, University of Southern Denmark, Department of Environmental and Business Economics.
- Lindstädt, Nadine & Budzinski, Oliver, 2012. "Newspaper vs. online advertising - Is there a niche for newspapers in modern advertising markets?," Ilmenau Economics Discussion Papers 73, Ilmenau University of Technology, Institute of Economics.
- Michael R. Baye & Babur De los Santos & Matthijs R. Wildenbeest, 2012. "What's in a Name? Measuring Prominence, and its Impact on Organic Traffic from Search Engines," Working Papers 2012-09, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- Emilio Calvano & Bruno Jullien, 2011. "Issues in on-line advertising and competition policy: a two-sided market perspective," Working Papers 427, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Roberto Burguet & Ramon Caminal & Matthew Ellman, 2013.
"In Google we trust?,"
UFAE and IAE Working Papers
935.13, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 12 Feb 2014.
- Monic Sun & Feng Zhu, 2011. "Ad Revenue and Content Commercialization: Evidence from Blogs," Working Papers 11-32, NET Institute.
- Lindstädt, Nadine & Budzinski, Oliver, 2012.
"Newspaper and internet display advertising - co-existence or substitution?,"
Ilmenau Economics Discussion Papers
74, Ilmenau University of Technology, Institute of Economics.
- Nadine Lindstädt & Oliver Budzinski, 2012. "Newspaper and Internet Display Advertising – Co-Existence or Substitution?," Working Papers 114/12, University of Southern Denmark, Department of Environmental and Business Economics.
- Argenton, C. & Prüfer, J., 2011.
"Search Engine Competition with Network Externalities,"
2011-024, Tilburg University, Tilburg Law and Economic Center.
- Argenton, C. & Prüfer, J., 2012. "Search engine competition with network externalities," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5117898, Tilburg University.
- Tucker, Catherine E., 2012. "The economics of advertising and privacy," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 326-329.
- Hong, Sounman, 2012. "Online news on Twitter: Newspapers’ social media adoption and their online readership," Information Economics and Policy, Elsevier, vol. 24(1), pages 69-74.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.