What happened when two guys who sell pizza out of a window in New Orleans decided to buy a Facebook ad — and what it says about the state of social-media advertising.
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How Pizza Works! — Sure it’s everywhere and there’s a more-than-90-percent chance you eat it once a month. But we’ll bet you don’t know the full history of that pizza (or tomato pie) you’re about to chow down on. Join Chuck and Josh as they explain it to you, bite by bite.
Catherine Tucker on online advertising and antitrust — Catherine Tucker, Douglas Drane Career Development Professor in IT and Management, and Assistant Professor of Marketing at MIT’s Sloan School of Management, discusses her paper with Avi Goldfarb in the Journal of Competition Law and Economics entitled, Substitution between Offline and Online Advertising Markets. According to Tucker, the FTC treats online advertising as a distinct market from offline advertising for antitrust purposes. She describes the study she and Goldfarb conducted, where they sought to determine whether online advertising could serve as a substitute for offline advertising. Tucker also discusses Google’s role in online advertising, how its auction mechanism affects pricing, and the difference between search advertising and display advertising. The conversation ends with a discussion on policy implications on how dominate players in online advertising should be viewed.
For Facebook to live up to its valuation, the company will need to redefine advertising as we know it.