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The Emerging Position of the Internet as an Advertising Medium

Author

Listed:
  • Alvin J. Silk

    (Harvard University)

  • Lisa R. Klein

    (Rice University)

  • Ernst R. Berndt

    (Massachusetts Institute of Technology)

Abstract

This paper examines the emerging position of the Internet as an advertising medium. The nature and time path of its evolution is subject to considerable uncertainty arising from issues relating to expansion of the Internet's penetration of households; consumer demand for information; development of pricing policies and measurement capabilities; and its attractiveness to advertisers in different product/service categories. Our analyses of these issues suggest that its long-term impact on intermedia rivalry will be broad and substantial. The Internet is emerging as an adaptive, hybrid medium with respect to the factors hypothesized to affect intermedia substitutability, namely, audience addressability, audience control, and contractual flexibility. Possessing such capabilities, it looms as a potential substitute or complement for all of the major categories of existing media and appears capable of serving a wide range of communications objectives for a broad array of advertisers.

Suggested Citation

  • Alvin J. Silk & Lisa R. Klein & Ernst R. Berndt, 2001. "The Emerging Position of the Internet as an Advertising Medium," Netnomics, Springer, vol. 3(2), pages 129-148, September.
    • Handle: RePEc:kap:netnom:v:3:y:2001:i:2:d:10.1023_a:1011455329830
    DOI: 10.1023/A:1011455329830
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    References listed on IDEAS

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    Cited by:

    1. Esteban-Bravo, Mercedes & Vidal-Sanz, Jose M. & Yildirim, Gökhan, 2015. "Historical impact of technological change on the US mass media advertising expenditure," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 306-316.
    2. 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.
    3. Ifesinachi Anyaegbunam Ayogu & Caroline Ayuma, 2022. "Influence of Internet Advertising Features on Online Shopping Habits Among Undergraduate Students in South-East Nigerian Universities," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 9(11), pages 46-64, November.
    4. Alvin Silk & Lisa Klein & Ernst Berndt, 2002. "Intermedia Substitutability and Market Demand by National Advertisers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(4), pages 323-348, June.
    5. David S. Evans, 2009. "The Online Advertising Industry: Economics, Evolution, and Privacy," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 37-60, Summer.
    6. Nadine Lindstädt & Oliver Budzinski, 2011. "Newspaper vs. Online Advertising – Is There a Niche for Newspapers in Modern Advertising Markets?," Working Papers 113/11, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.
    7. Avi Goldfarb & Catherine Tucker, 2011. "Search Engine Advertising: Channel Substitution When Pricing Ads to Context," Management Science, INFORMS, vol. 57(3), pages 458-470, March.
    8. repec:bcp:journl:v:9:y:2022:i:11:p:46-64 is not listed on IDEAS
    9. Sultan, Fareena & Rohm, Andrew J. & Gao, Tao (Tony), 2009. "Factors Influencing Consumer Acceptance of Mobile Marketing: A Two-Country Study of Youth Markets," Journal of Interactive Marketing, Elsevier, vol. 23(4), pages 308-320.
    10. Deleersnyder, B. & Geyskens, I. & Gielens, K. & Dekimpe, M.G., 2002. "How Cannibalistic is the Internet Channel?," ERIM Report Series Research in Management ERS-2002-22-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    11. Häring, Julia, 2005. "The Virtual Location of E-Tailers: Evidence from a B2C E-Commerce Market," ZEW Discussion Papers 05-52, ZEW - Leibniz Centre for European Economic Research.
    12. Deleersnyder, B. & Geyskens, I. & Gielens, K.J.P. & Dekimpe, M.G., 2002. "How cannibalistic is the internet channel? A study of the newspaper industry in the United Kingdom and the Netherlands," Other publications TiSEM 16dcb25c-7ea9-4c75-bdf6-5, Tilburg University, School of Economics and Management.
    13. Alexandra ZBUCHEA & Rareº MOCANU, 2013. "Adding Value to Customers and Developing Brands through Electronic Newsletters," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(2), pages 297-315, December.
    14. Kornelis, Marcel & Dekimpe, Marnik G. & Leeflang, Peter S.H., 2008. "Does competitive entry structurally change key marketing metrics?," International Journal of Research in Marketing, Elsevier, vol. 25(3), pages 173-182.
    15. Kaiser Ulrich, 2006. "Magazines and their Companion Websites: Competing Outlet Channels?," Review of Marketing Science, De Gruyter, vol. 4(1), pages 1-26, August.

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    Keywords

    advertising; Internet;

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