Pricing Banner Advertisements in a Social Network of Political Weblogs

This paper employs social network analysis to explain variation in the pricing of 846 banner advertisements appearing in a community formed by 89 “Liberal” and 84 “Conservative” weblogs. As predicted, weblogs that bridge “structural holes” between otherwise disconnected segments of the community command significantly higher prices for their advertisements. Also as predicted, the price of banner ads increases with the number of impressions received, with the size of the ad, when the ad is located higher on the page, and when fewer other ads appear.