Hi! PARIS is pleased to announce its next scientific Seminar in Digital advertising.
Tuesday 10 May 2022, 2.00-3.30pm
Online webinar on Zoom
The first Hi! PARIS Scientific Seminar will give the floor to Klaus Miller, Hi! PARIS Chair holder 2021 and Assistant professor of Marketing, HEC Paris.
When the Cookie Crumbles? The Impact of Online Tracking Restrictions on the Online Advertising Market
User-tracking such as (digital) cookies is increasingly restricted to protect users’ privacy online, but little is known about the potentially negative effects for the online advertising market. This research empirically investigates those effects by examining 42 million ad impressions from 100 websites. The average price of ad impressions for users who do not enable user-tracking is 59.4% lower than those that enable user-tracking. Estimating a potential outcome framework using augmented inverse probability weighting decreases this value to 38.5%. This value increases for ad impressions of premium websites and decreases for niche websites and websites with a large customer concentration. Most of the decrease occurs because of the lack of non-browsing-behavior data. These data are less privacy-intrusive and enable advertisers, for instance, to measure the success of advertising. Our results imply that restricting user-tracking has severe negative economic consequences for the online advertising market.
Slides and a working paper are available upon request via email (millerk @ hec.fr)
Replay (to come)
Klaus teaches Quantitative Marketing and Artificial Intelligence in Marketing. Klaus’ research explores pricing, advertising, and customer management issues in the digital economy. He often collaborates with the industry to answer research questions at scale. Currently, his work is mainly focused on data privacy, fairness, and the monetization of digital content. Specifically, he answers the question: does it pay to be fair? His research indicates that exploiting customers’ biases may backfire in the long term due to customer retaliation; and that being fair (not exploiting the biases) is even more profitable for firms over time. Klaus also investigates the best way businesses can use online ads, or another source of revenue, while preserving data privacy. This research calls for finding new forms of monetization for digital content beyond online advertising.