Making sense out of advertising on the Internet : a study of pricing models for banner ads.

Abstract

The Internet is fast growing as a communications, entertainment, and commercial medium. To marketers, Internet users are an attractive audience: young, educated, and wealthy. "Advertising space" on the traditional medium is charged by the position and size of the ad, and the number of people who are expected to see it. But how does one charge for "space" on the Internet, which combines characteristics of both print and the broadcast media, and even offers more than either? There is at present no one standard pricing model on the Internet. This paper offers a review and assessment of the different price models currently being used for banner advertisements on the Internet, which incorporates several features found in current price models, as a possible standard for Internet banner ad pricing.