The Pricing of Online Advertising
Wednesday, March 14, 2007
I’ve been thinking about online advertising lately. Whenever I try learn about something, I first focus on 1. what problems exist and 2. finding the right questions to ask. I’m thinking there might be a problem in the way online advertising is priced. A lot of the internet depends on advertising today.
Is there an inefficiency in the way online advertising is priced?
How do you price online advertising?
Are there any problems with the current pricing methodology?
To give some more context, I’m specifically concerned with blogs. Let’s say I have a blog, and a readership. I want to display advertising but don’t know what to charge. I can charge based on how engaged my audience is to my site and the size of my audience, but is that the right way? Is there a best way? There is no consensus on a engagement metric, I think. I’m going to have think about this more, but meanwhile, check out what Wikipedia has to say: Online advertising.

