Inefficiencies in Digital Advertising Markets

Gordon, Brett R.; Jerath, Kinshuk; Katona, Zsolt; Narayanan, Sridhar; Shin, Jiwoong; Wilbur, Kenneth C.

doi:10.2139/ssrn.3459199

Inefficiencies in Digital Advertising Markets

48 Pages Posted: 30 Sep 2019

See all articles by Brett R. Gordon

Brett R. Gordon

Northwestern University - Kellogg School of Management

Kinshuk Jerath

Columbia University - Columbia Business School

Zsolt Katona

University of California, Berkeley - Haas School of Business

Kenneth C. Wilbur

University of California, San Diego (UCSD) - Rady School of Management

Date Written: September 27, 2019

Abstract

Digital advertising markets are growing and attracting increased scrutiny. This paper explores four market inefficiencies that remain poorly understood: ad effect measurement, frictions between and within advertising channel members, ad blocking and ad fraud. These topics are not unique to digital advertising, but each manifests in new ways in markets for digital ads. We focus on relevant findings in the academic literature, recent developments in practice, and promising topics for future research.

Keywords: Advertising, Antitrust, Digitalization, Inefficiencies, Markets

JEL Classification: M30, M31, M37, M38, L4, L5, L52, L86, K20, D86

Suggested Citation: Suggested Citation

Gordon, Brett R. and Jerath, Kinshuk and Katona, Zsolt and Narayanan, Sridhar and Shin, Jiwoong and Wilbur, Kenneth C., Inefficiencies in Digital Advertising Markets (September 27, 2019). Available at SSRN: https://ssrn.com/abstract=3459199 or http://dx.doi.org/10.2139/ssrn.3459199