Advertising disclosures: Measuring labeling alternatives in internet search engines

Benjamin Edelman and Duncan S. Gilchrist

Information Economics and Policy, 2012, vol. 24, issue 1, 75-89

Abstract: In an online experiment, we measure users’ interactions with search engines, both in standard configurations and in modified versions with clearer labels identifying search engine advertisements. In particular, for a random subset of users, we change “Sponsored links” or “Ads” labels to instead read “Paid Advertisements.” Relative to users receiving the “Sponsored link” or “Ad” labels, users receiving the “Paid Advertisement” label click 25% and 27% fewer advertisements, respectively. Users seeing “Paid Advertisement” labels also correctly report that they click fewer advertisements, controlling for the number of advertisements they actually click. Results are most pronounced for commercial searches, and for vulnerable users with low education and little online experience.

Keywords: Internet advertising; Search engines; Disclosure; Regulation; Consumer protection; Survey methods (search for similar items in EconPapers)
JEL-codes: C83 L51 L86 M37 M38 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:24:y:2012:i:1:p:75-89

DOI: 10.1016/j.infoecopol.2012.01.003

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