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research-article

How effective is targeted advertising?

Authors:

Michael C. BaileyAuthors Info & Claims

WWW '12: Proceedings of the 21st international conference on World Wide Web

Pages 111 - 120

https://doi.org/10.1145/2187836.2187852

Published: 16 April 2012 Publication History

Abstract

Advertisers are demanding more accurate estimates of the impact of targeted advertisements, yet no study proposes an appropriate methodology to analyze the effectiveness of a targeted advertising campaign, and there is a dearth of empirical evidence on the effectiveness of targeted advertising as a whole. The targeted population is more likely to convert from advertising so the response lift between the targeted and untargeted group to the advertising is likely an overestimate of the impact of targeted advertising. We propose a difference-in-differences estimator to account for this selection bias by decomposing the impact of targeting into selection bias and treatment effects components. Using several large-scale online advertising campaigns, we test the effectiveness of targeted advertising on brand-related searches and clickthrough rates. We find that the treatment effect on the targeted group is about twice as large for brand-related searches, but naively estimating this effect without taking into account selection bias leads to an overestimation of the lift from targeting on brand-related searches by almost 1,000%.

Supplementary Material

ZIP File (fp1272.zip)

== AUXILIARY AND SUPPLEMENTARY MATERIAL FOR FARAHAT AND BAILEY == HOW EFFECTIVE IS TARGETED ADVERTISING? == PUBLISHED IN THE PROCEEDINGS OF WWW'2012, April 16-20, 2012, Lyon, France == The online appendix of all data, tables, and results are found in the pdf file fp1272.pdf.

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Cited By

Hu LSun XYu HChung S(2024)Seize the Opportunity of Targeted Marketing Under the Platform Membership MechanismIEEE Transactions on Engineering Management10.1109/TEM.2022.316939271(1969-1983)Online publication date: 2024
https://doi.org/10.1109/TEM.2022.3169392
Upadhyay UKumar ASharma GSharma SArya VPanigrahi PGupta B(2024)A systematic data-driven approach for targeted marketing in enterprise information systemEnterprise Information Systems10.1080/17517575.2024.235677018:8Online publication date: 29-May-2024
https://doi.org/10.1080/17517575.2024.2356770
Ahmadi IAbou Nabout NSkiera BMaleki EFladenhofer J(2024)Overwhelming targeting options: Selecting audience segments for online advertisingInternational Journal of Research in Marketing10.1016/j.ijresmar.2023.08.00441:1(24-40)Online publication date: Mar-2024
https://doi.org/10.1016/j.ijresmar.2023.08.004
Show More Cited By

Index Terms

How effective is targeted advertising?
1. Applied computing
  1. Law, social and behavioral sciences
    1. Economics
2. Mathematics of computing
  1. Probability and statistics
    1. Statistical paradigms
      1. Exploratory data analysis

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Published In

cover image ACM Other conferences

WWW '12: Proceedings of the 21st international conference on World Wide Web

April 2012

1078 pages

ISBN:9781450312295

DOI:10.1145/2187836

General Chairs:
Alain Mille
Université de Lyon, France
,
Fabien Gandon
INRIA, France
,
Jacques Misselis
HP, France
,
Program Chairs:
Michael Rabinovich
Case Western Reserve University, USA
,
Steffen Staab
University of Koblenz-Landau, Germany

Copyright © 2012 ACM.

Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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Univ. de Lyon: Universite de Lyon

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SIGWEB: ACM Special Interest Group on Hypertext, Hypermedia, and Web

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Association for Computing Machinery

New York, NY, United States

Publication History

Published: 16 April 2012

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WWW 2012

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Univ. de Lyon

WWW 2012: 21st World Wide Web Conference 2012

April 16 - 20, 2012

Lyon, France

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Cited By

Hu LSun XYu HChung S(2024)Seize the Opportunity of Targeted Marketing Under the Platform Membership MechanismIEEE Transactions on Engineering Management10.1109/TEM.2022.316939271(1969-1983)Online publication date: 2024
https://doi.org/10.1109/TEM.2022.3169392
Upadhyay UKumar ASharma GSharma SArya VPanigrahi PGupta B(2024)A systematic data-driven approach for targeted marketing in enterprise information systemEnterprise Information Systems10.1080/17517575.2024.235677018:8Online publication date: 29-May-2024
https://doi.org/10.1080/17517575.2024.2356770
Ahmadi IAbou Nabout NSkiera BMaleki EFladenhofer J(2024)Overwhelming targeting options: Selecting audience segments for online advertisingInternational Journal of Research in Marketing10.1016/j.ijresmar.2023.08.00441:1(24-40)Online publication date: Mar-2024
https://doi.org/10.1016/j.ijresmar.2023.08.004
Gomis-Porqueras PWang Z(2023)Digital Platforms: Payments and the Provision of PrivacySSRN Electronic Journal10.2139/ssrn.4526163Online publication date: 2023
https://doi.org/10.2139/ssrn.4526163
Wang PJiang LYang J(2023)The Early Impact of GDPR Compliance on Display Advertising: The Case of an Ad PublisherJournal of Marketing Research10.1177/0022243723117184861:1(70-91)Online publication date: 23-Jun-2023
https://doi.org/10.1177/00222437231171848
Blondin MLeys TMazowiecki FOfftermatt PPérez G(2023)Continuous One-counter AutomataACM Transactions on Computational Logic10.1145/355854924:1(1-31)Online publication date: 18-Jan-2023
https://dl.acm.org/doi/10.1145/3558549
Sharma TKaushik SYu YAhmed SWang Y(2023)User Perceptions and Experiences of Targeted Ads on Social Media Platforms: Learning from Bangladesh and IndiaProceedings of the 2023 CHI Conference on Human Factors in Computing Systems10.1145/3544548.3581498(1-15)Online publication date: 19-Apr-2023
https://dl.acm.org/doi/10.1145/3544548.3581498
Wassmann BSiegrist MHartmann C(2023)Palm oil and the Roundtable of Sustainable Palm Oil (RSPO) label: Are Swiss consumers aware and concerned?Food Quality and Preference10.1016/j.foodqual.2022.104686103(104686)Online publication date: Jan-2023
https://doi.org/10.1016/j.foodqual.2022.104686
Baum KAbramova OMeißner SKrasnova H(2023)The effects of targeted political advertising on user privacy concerns and digital product acceptance: A preference-based approachElectronic Markets10.1007/s12525-023-00656-133:1Online publication date: 1-Sep-2023
https://doi.org/10.1007/s12525-023-00656-1
Yayla ADincelli EParameswaran S(2023)A Mining Town in a Digital Land: Browser-Based Cryptocurrency Mining as an Alternative to Online AdvertisingInformation Systems Frontiers10.1007/s10796-023-10386-626:2(609-631)Online publication date: 5-Apr-2023
https://doi.org/10.1007/s10796-023-10386-6
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