Abstract

http://ssrn.com/abstract=1021451
 
 

References (35)



 
 

Citations (25)



 


 



Search Engine Advertising: Channel Substitution when Pricing Ads to Context


Avi Goldfarb


University of Toronto - Rotman School of Management

Catherine Tucker


Massachusetts Institute of Technology (MIT) - Management Science (MS)

October 1, 2010

NET Institute Working Paper No. 07-23

Abstract:     
We 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 towards 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.

Number of Pages in PDF File: 30

Keywords: search engines, advertising, market power, advertising prices

JEL Classification: L86, M37

working papers series





Download This Paper

Date posted: October 15, 2007 ; Last revised: October 25, 2012

Suggested Citation

Goldfarb, Avi and Tucker, Catherine, Search Engine Advertising: Channel Substitution when Pricing Ads to Context (October 1, 2010). NET Institute Working Paper No. 07-23. Available at SSRN: http://ssrn.com/abstract=1021451 or http://dx.doi.org/10.2139/ssrn.1021451

Contact Information

Avi Goldfarb (Contact Author)
University of Toronto - Rotman School of Management ( email )
105 St. George Street
Toronto, Ontario M5S 3E6
Canada
416-946-8604 (Phone)
416-978-5433 (Fax)
Catherine Tucker
Massachusetts Institute of Technology (MIT) - Management Science (MS) ( email )
Cambridge, MA 02142
United States
HOME PAGE: http://cetucker.scripts.mit.edu
Feedback to SSRN


Paper statistics
Abstract Views: 4,883
Downloads: 1,059
Download Rank: 10,696
References:  35
Citations:  25

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.484 seconds