Advertising : NooTag Blog

Advertising on the Internet

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 […]

Do consumers benefit of advertising?

   Up until now I’ve been talking about the price that advertisements make people pay in exchange for information. I’ve also argued that this price is much higher than the fair value of the information. Some researchers along with some advertising fans (mostly those who make a living of it) explain this anomaly by some […]

Private costs of advertising

   I’ve mentioned two types of costs caused to the consumers by advertising: public and private. In my previous posts I’ve extensively discussed the public costs that are embodied in the product’s price and paid at the occasion of a purchase. These costs are called public since all of the consumers must pay them, regardless […]

Why do we choose to pay more?

            Previously I’ve claimed that advertising is an expensive and unfair way to pay for information. Nevertheless, it’s still a very popular currency that is constantly being used in order to acquire various types of content. The explanation to this situation is the absence of choice. Consumers are compelled to pay for advertisements while purchasing […]

Advertising is an unfair way of payment

     In order to reveal the unfairness that is concealed in the advertising as a mean of payment for information, let’s return to the hypothetic world I’ve created in my previous post. We had two products there: TV content and Cola; manufacturers and consumers of these products; and also a legislator. Previously I’ve described two […]

Advertising is an expensive way of payment

     Let’s see how a world with no advertising would look like. As usually, I’ll get in to my economic mood and start simplifying things. Let’s imagine a world in which people consume only TV content and Cola, for some of us it may not be so hypothetic. In this world there is only one […]

Public cost of advertising

     In most markets the majority of businesses advertise. No one of the parties can stop due to the fear of losing a share of the market to the competitors; consequently they keep doing it just to maintain the status quo. Since those costs become inevitable, they cause to a raise in product’s price and […]

How do we pay for the information?

     I can think of two primary means of payment for information: The first way is a direct compensation for its usage. We do that every time we pay for a book, the cable TV, or the college tuition. The second option is to pay indirectly via advertisement; it’s customary in commercial TV, radio and […]