How has the Internet influenced advertising?
2 min read
The Internet has influenced advertising a lot as nowadays every business has an online reputation. There is a fight between competitors over the network to place himself above the other. online marketing has its importance.
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It has dramatically reduced the fraction of ad budgets that go toward content. In magazine ads, the typical split was 85% to the publisher, 15% to the ad agency. Today, the publisher receives only 25-45% while Adtech (AOL company) intermediaries receive 55-75%. It’s an interesting counterintuitive example of new technology actually raising Transaction costs in a market.
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