Race Discrimination in Internet Advertising: Evidence From a Field Experiment

Abstract

We present the results of an experiment documenting racial bias on Meta's Advertising Platform in Brazil and the United States. We find that darker skin complexions are penalized, leading to real economic consequences. For every $1,000 an advertiser spends on ads with models with light-skin complexions, that advertiser would have to spend $1,159 to achieve the same level of engagement using photos of darker skin complexion models. Meta's budget optimization tool reinforces these viewer biases. When pictures of models with light and dark complexions are allocated a shared budget, Meta funnels roughly 64% of the budget towards photos featuring lighter skin complexions.

JEL Classification: J71, L86