ABSTRACT

The model introduced— called the Network Advertising Model (NAM) — is quite different from the Interactive Advertising Model (IAM), although, in fact, the NAM subsumes significant components of the IAM. In June 2016, Facebook published a list of priorities for how it will post messages in news feeds. The posting algorithm will put top priority on the posts of consumers' friends and family. Google similarly determines where advertisements and news stories go in the order of what comes up from a search. Advertisers can buy sponsored ads that link with search words and appear at the top of search content, but Google's algorithms determine to whom and where they appear in searches. The NAM suggests that search and social media environments set up very different challenges for advertising and must be examined separately. For Google, the key variable appears to be "the intent of the consumer" that does the search.