NEW YORK (AP) — When you sign up to run an ad, you pay.
You pay for the privilege of being shown the ad.
But when advertisers try to use the same platform to sell their wares online, they often end up paying more than they bargained for.
Advertisers pay for ads to appear on sites such as YouTube, Google and Facebook, but that’s not the whole story.
The Internet has created a global marketplace where companies can set their own prices for ads.
The result: Some companies, including Amazon and Netflix, pay more for advertising on those sites than they get back in revenue.
“You’re getting more money,” said John R. Campbell, a former Google executive who is now chief technology officer for the National Association of Broadcasters.
“That’s what you pay to advertise.”
The numbers are based on data collected by The Center for Responsive Politics, a Washington research group that tracks political spending.
They are based mainly on how much the sites pay advertisers to appear in the ads, how many times they appear and how much revenue the companies generate from those ads.
It’s difficult to determine how much money companies make off the ads.
Some advertisers pay more than others.
The most prominent ad network is the one that controls most of the online video and social-media platforms.
It pays about $1.3 billion a year to run ads on YouTube, YouTube’s biggest revenue generator, and about $900 million a year for Facebook, according to data from the Center for Public Integrity.
Other companies, such as eBay and Target, charge advertisers more than the ads appear to be worth.
They’re paying to advertise on sites like eBay and other online shopping portals, which also are known as ad networks.
eBay said its ad revenue was $2.5 billion last year.
Amazon paid about $400 million for a slot in an ad for an anti-bullying campaign, according a person familiar with the deal who was not authorized to speak publicly because the person was not permitted to discuss the matter.
Facebook, the biggest online advertising platform, pays advertisers about $3 billion to run their ads.
They typically appear on news sites and other media outlets, as well as on other advertising platforms.
Facebook declined to comment.
Online video platforms also are more likely to pay to show ads to customers who have paid for them.
They usually don’t make a profit.
Facebook and Google declined to respond to questions about how much advertisers make.