The relationship between advertising and content provision on the Internet

Abstract

Explores the question of whether the traditional practice of bundling advertisements with content will prevail or become less common on the Internet. Given that revenue from advertisers is desirable to content providers, the answer mainly depends on whether advertisers will choose to deliver their advertisements by bundling. The decision to bundle in turn depends on the response of customers to bundling and to other advertising strategies. In particular, the relationship between advertising and content provision on the Internet may be affected by this medium’s distinctive characteristics, which affect the choices of advertisers and the response of customers. Thus, one needs to investigate the choices of advertisers, the behavior of customers, and their dependence on the distinctive technological features of the Internet.

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