Efficiency analysis for display ads and contextual search

Yung Ming Li, Jhih Hua Jhang-Li, Yi Lin Lee

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Scopus citations


Most News Web sites provide display ads and contextual ads, which are the main ad formats in Internet. Unlike display ads, contextual ad is a performance based advertisement and allows clients to bid for their exposure rate. Not only do Web sites save operation costs but also clients plan their budget flexibly. However, in addition to accuracy of search results, contextual ads like a common resource pool will spend much more time to take the same number of clicks as display ads do. In this paper, we develop a simple economic model to examine the profitability and social efficiency of contextual ads under monopolistic and duopolistic market structures.

Original languageEnglish
Title of host publicationICEC 2007
Subtitle of host publicationProceedings of the Ninth International Conference on Electronic Commerce
Number of pages8
StatePublished - 2007
EventProceedings of the ninth international conference - Minneapolis, MN, United States
Duration: 19 Aug 200722 Aug 2007

Publication series

NameACM International Conference Proceeding Series


ConferenceProceedings of the ninth international conference
Country/TerritoryUnited States
CityMinneapolis, MN


  • Competition
  • Contextual ads
  • Display ads
  • Game theory
  • Pricing strategies


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