The Economic Value of User Tracking for Publishers

Laub, Rene; Miller, Klaus; Skiera, Bernd

doi:10.2139/ssrn.4251233

Cited by 3 publications

(1 citation statement)

References 61 publications

(41 reference statements)

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“…Johnson, Shriver, and Du (2020) find that when consumers opt out of behavioral tracking through AdChoices, this results in a 52% decline in ad exchange revenue. Laub, Miller, and Skiera (2022) obtain data from a large European ad exchange in 2016 and find that after controlling for differences in users, advertisers, and publishers, when user tracking is unavailable, ad price decreases by 18%. Marotta, Abhishek, and Acquisti (2019) obtain ad revenue data from a single large publisher and find that when a user's cookies are available, the publisher's revenue increases by only about 4%.…”

Section: Literature Reviewmentioning

confidence: 99%

The Early Impact of GDPR Compliance on Display Advertising: The Case of an Ad Publisher

Wang¹,

Jiang²,

Yang³

2023

Journal of Marketing Research

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The European Union (EU)’s General Data Protection Regulation (GDPR), with its explicit consent requirement, may restrict the use of personal data and shake the foundations of online advertising. The ad industry predicted drastic loss of revenue from GDPR compliance and has been seeking alternative ways of targeting. Taking advantage of an event created by an ad publisher’s request for explicit consent from users with EU IP addresses, the authors find that for a publisher that uses a pay-per-click model, has the capacity to leverage both user behavior and webpage content information for advertising, and observes high consent rates, GDPR compliance leads to modest negative effects on ad performance, bid prices, and ad revenue. The changes in ad metrics can be explained by temporal variations in consent rates. The impact is most pronounced for travel and financial services advertisers and least pronounced for retail and consumer packaged goods advertisers. The authors further find that webpage context can compensate for the loss of access to users’ personal data, as the GDPR’s negative impact is less pronounced when ads are posted on webpages presenting relevant content. The results suggest that publishers and advertisers should leverage webpage-content-based targeting in a post-GDPR world.

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Section: Literature Reviewmentioning

confidence: 99%