Incentive Misalignments in Programmatic Advertising: Evidence from a Randomized Field Experiment

Published Online:https://doi.org/10.1287/mnsc.2022.4438

References

  • Adomavicius G, Curley SP, Gupta A, Sanyal P (2012) Effect of information feedback on bidder behavior in continuous combinatorial auctions. Management Sci. 58(4):811–830.LinkGoogle Scholar
  • Agarwal A, Mukhopadhyay T (2016) The impact of competing ads on click performance in sponsored search. Inform. Systems Res. 27(3):538–557.LinkGoogle Scholar
  • Arnosti N, Beck M, Milgrom P (2016) Adverse selection and auction design for internet display advertising. Amer. Econom. Rev. 106(10):2852–2866.CrossrefGoogle Scholar
  • Arora N, Dreze X, Ghose A, Hess JD, Iyengar R, Jing B, Joshi Y, et al. (2008) Putting one-to-one marketing to work: Personalization, customization, and choice. Marketing Lett. 19(3-4):305–321.CrossrefGoogle Scholar
  • Asdemir K, Kumar N, Jacob VS (2012) Pricing models for online advertising: CPM vs. CPC. Inform. Systems Res. 23(3):804–822.LinkGoogle Scholar
  • Athey S, Imbens G (2017) The Econometrics of Randomized Experiments, vol. 1 (Elsevier, North Holland), 73–140.CrossrefGoogle Scholar
  • Balseiro SR, Feldman J, Mirrokni V, Muthukrishnan S (2014) Yield optimization of display advertising with ad exchange. Management Sci. 60(12):2886–2907.LinkGoogle Scholar
  • Berman R (2018) Beyond the last touch: Attribution in online advertising. Marketing Sci. 37(5):771–792.LinkGoogle Scholar
  • Blake T, Nosko C, Tadelis S (2015) Consumer heterogeneity and paid search effectiveness: A large-scale field experiment. Econometrica 83(1):155–174.CrossrefGoogle Scholar
  • Bleier A, Eisenbeiss M (2015) Personalized online advertising effectiveness: The interplay of what, when, and where. Marketing Sci. 34(5):669–688.LinkGoogle Scholar
  • Bun MJ, Harrison TD (2019) OLS and IV estimation of regression models including endogenous interaction terms. Econometric Rev. 38(7):814–827.CrossrefGoogle Scholar
  • Choi H, Mela CF, Balseiro SR, Leary A (2020) Online display advertising markets: A literature review and future directions. Inform. Systems Res. 31(2):556–575.LinkGoogle Scholar
  • Clarke EH (1971) Multipart pricing of public goods. Public Choice. 11(1):17–33.CrossrefGoogle Scholar
  • Dalessandro B, Perlich C, Stitelman O, Provost F (2012) Causally motivated attribution for online advertising. Proc. 6th Internat. Workshop on Data Mining for Online Advertising and Internet Econom. (ACM, New York), 1–9.Google Scholar
  • Edelman BB, Ostrovsky M, Schwarz M (2007) Internet advertising and the generalized second-price auction: Selling billions of dollars worth of keywords. Amer. Econom. Rev. 97(1):242–259.CrossrefGoogle Scholar
  • Feng J, Xie J (2012) Research note: Performance-based advertising: Advertising as signals of product quality. Inform. Systems Res. 23(3):1030–1041.LinkGoogle Scholar
  • Gordon B, Zettelmeyer F, Bhargava N, Chapsky D (2019) A comparison of approaches to advertising measurement: Evidence from big field experiments at Facebook. Marketing Sci. 38(2):193–225.LinkGoogle Scholar
  • Gordon BR, Jerath K, Katona Z, Narayanan S, Shin J, Wilbur KC (2021) Inefficiencies in digital advertising markets. J. Marketing 85(1):7–25.CrossrefGoogle Scholar
  • Groves T (1973) Incentives in teams. Econometrica 41(4):617–631.CrossrefGoogle Scholar
  • Hoban PR, Bucklin RE (2015) Effects of internet display advertising in the purchase funnel: Model-based insights from a randomized field experiment. J. Marketing Res. 52(3):375–393.CrossrefGoogle Scholar
  • Hu YJ, Shin J, Tang Z (2016) Incentive problems in performance-based online advertising pricing: Cost per click vs. cost per action. Management Sci. 62(7):2022–2038.LinkGoogle Scholar
  • Johnson GA, Lewis RA (2015) Cost per incremental action: Efficient pricing of advertising. Working paper, Simon Business School Working Paper No. FR 15-29, University of Rochester, Rochester, NY.Google Scholar
  • Johnson GA, Lewis RA, Nubbemeyer EI (2017a) Ghost ads: Improving the economics of measuring ad effectiveness. J. Marketing Res. 54(6):867–884.CrossrefGoogle Scholar
  • Johnson G, Lewis RA, Reiley D (2016) Location, location, location: Repetition and proximity increase advertising effectiveness. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2268215.Google Scholar
  • Johnson GA, Lewis RA, Reiley DH (2017b) When less is more: Data and power in advertising experiments. Marketing Sci. 36(1):43–53.LinkGoogle Scholar
  • Lambrecht A, Tucker C (2013) When does retargeting work? Information specificity in online advertising. J. Marketing Res. 50(5):561–576.CrossrefGoogle Scholar
  • Lewis RA, Rao JM (2015) The unfavorable economics of measuring the returns to advertising. Quart. J. Econom. 130(4):1941–1973.CrossrefGoogle Scholar
  • Lewis RA, Reiley DH (2014a) Advertising effectively influences older users: How field experiments can improve measurement and targeting. Rev. Industrial Organ. 44(2):147–159.CrossrefGoogle Scholar
  • Lewis RA, Reiley DH (2014b) Online ads and offline sales: Measuring the effect of retail advertising via a controlled experiment on Yahoo! Quant. Marketing Econom. 12(3):235–266.CrossrefGoogle Scholar
  • Lewis RA, Wong J (2018) Incrementality bidding & attribution. https://dx.doi.org/10.2139/ssrn.3129350.Google Scholar
  • Lewis R, Rao JM, Reiley DH (2015) Economic Analysis of the Digital Economy (University of Chicago Press, Chicago).Google Scholar
  • Lu Y, Gupta A, Ketter W, Van Heck E (2016) Exploring bidder heterogeneity in multichannel sequential b2b auctions. Management Inform. Systems Quart. 40(3):645–662.CrossrefGoogle Scholar
  • Lu Y, Gupta A, Ketter W, Van Heck E (2019) Information transparency in business-to-business auction markets: The role of winner identity disclosure. Management Sci. 65(9):4261–4279.LinkGoogle Scholar
  • Sahni NS (2015) Effect of temporal spacing between advertising exposures: Evidence from online field experiments. Quant. Marketing Econom. 13(3):203–247.CrossrefGoogle Scholar
  • Sahni NS, Narayanan S, Kalyanam K (2019) An experimental investigation of the effects of retargeted advertising: The role of frequency and timing. J. Marketing Res. 56(3):401–418.CrossrefGoogle Scholar
  • Schumann J (2014) Targeted online advertising: Using reciprocity appeals to increase acceptance among users of free web services. J. Marketing 78(1):59–75.CrossrefGoogle Scholar
  • Schwartz EM, Bradlow ET, Fader PS (2017) Customer acquisition via display advertising using multi-armed bandit experiments. Marketing Sci. 36(4):500–522.LinkGoogle Scholar
  • Simester D, Timoshenko A, Zoumpoulis SI (2020a) Efficiently evaluating targeting policies: Improving on champion vs. challenger experiments. Management Sci. 66(8):3412–3424.LinkGoogle Scholar
  • Simester D, Timoshenko A, Zoumpoulis SI (2020b) Targeting prospective customers: Robustness of machine-learning methods to typical data challenges. Management Sci. 66(6):2495–2522.LinkGoogle Scholar
  • Vickrey W (1961) Counterspeculation, auctions, and competitive sealed tenders. J. Finance 16(1):8–37.CrossrefGoogle Scholar
  • Xu J, Shao X, Ma J, Lee KC, Qi H, Lu Q (2016) Lift-based bidding in ad selection. Proc. 30th Conf. on Artificial Intelligence (Association for the Advancement of Artificial Intelligence, Palo Alto, CA), 651–657.Google Scholar
  • Zantedeschi D, Feit EM, Bradlow ET (2017) Measuring multichannel advertising response. Management Sci. 63(8):2706–2728.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.