Vviewpoints

DOI: 10.1145/1400214.1400222
Economic and Business
dimensions
search Engine Advertising

Examining a profitable side of the long tail of advertising that is not possible under the traditional broadcast advertising model.

ThE Long tAiL is no secret to Internet users or vendors. Both Amazon and Cafepress, for example, have shown that it is possible to profit from providing many niche or unusual products that would take up expensive shelf space offline. Less appreciated is how the long tail alters advertising strategies. In a recent research paper, ¹ we explored how, and how much, search engines can profit from providing advertising for niche or unusual popular products. The best way to determine this turns out to be an analysis of Internet advertising purchased by lawyers.

kind of tailoring much more difficult, so Google can charge higher prices for these ads than for conventional non-tailored ads.

For example, lawyers specializing in computer crime lawsuits can use search engine advertising to ensure their ads are displayed only to people searching for “computer crime lawyer.”

Their alternatives would be either: ordinary broadcast-style media like newspapers, magazines, television, and banner ads; or contacting people directly via telephone, postal mail, email, or in person. Using broadcast media would waste eyeballs: Many of the people who saw the ad would have no interest in find-

industry Background Search platforms enjoy a huge advantage over other online advertising platforms, because they can use a customer’s own search terms to match customers’ interests with advertisers. Ads are displayed only when a Web user enters a search term, and the advertiser only pays when the user clicks on the ad and is redirected to the advertiser’s Web site. Offline companies find this