Advertising on the Internet

Posted by Alexander Ginzburg on October 24, 2007
Filed Under Advertising |

My last few posts were dedicated to a discussion about advertising as a mean of payment for information. Now I’m ready to go back on track to the main subject of this blog, the information on the Internet. The economic mechanism behind the information market in the virtual world is basically the same as in the real one. Therefore, advertisements are used on the web as a method of payment as well. Moreover, it’s almost the soul method available on the web. People consume the information through the mediators (like search engines, portals, and social networks) and pay for it by exposing themselves to advertisements. The income from advertisers is meant to be used as a reward to the information producers for their effort. However, as opposed to the real world, most producers on the internet don’t get their money.