Skip to main content
Top
Published in: Customer Needs and Solutions 1-2/2022

30-03-2022 | Perspectives

Privacy-Centric Digital Advertising: Implications for Research

Authors: Garrett Johnson, Julian Runge, Eric Seufert

Published in: Customer Needs and Solutions | Issue 1-2/2022

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

Yesterday’s digital advertising relied on cross-website and cross-app user identity to measure, target, and optimize ads. Spurred by regulatory pressure, today’s digital advertising is evolving to become more privacy-protective. Apple and Google are leading this movement by sunsetting old technologies and building more privacy-centric alternatives. Marketing academics and practitioners, in turn, must learn to adapt to this new reality. We outline these new advertising approaches and their implications for advertising strategy, targeting, and measurement. We propose key questions and an agenda for researchers to help shape the privacy-centric future of digital advertising.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Footnotes
1
Note that Facebook and Mozilla propose an alternative that relies on multi-party computation to permit cross-platform attribution modeling while preserving privacy [50].
 
Literature
1.
go back to reference Ada S, Abou Nabout N, Feit EM (2022) Context information increases revenue in ad auctions: Evidence from a policy change. J Market Res, forthcoming Ada S, Abou Nabout N, Feit EM (2022) Context information increases revenue in ad auctions: Evidence from a policy change. J Market Res, forthcoming
2.
go back to reference Blake T, Nosko C, Tadelis S (2015) Consumer heterogeneity and paid search effectiveness: a large-scale field experiment. Econometrica 83(1):155–174CrossRef Blake T, Nosko C, Tadelis S (2015) Consumer heterogeneity and paid search effectiveness: a large-scale field experiment. Econometrica 83(1):155–174CrossRef
3.
go back to reference Bleier A, Eisenbeiss M (2015) Personalized online advertising effectiveness: the inter- play of what, when, and where. Mark Sci 34(5):669–688CrossRef Bleier A, Eisenbeiss M (2015) Personalized online advertising effectiveness: the inter- play of what, when, and where. Mark Sci 34(5):669–688CrossRef
4.
go back to reference Bleier A, Goldfarb A, Tucker C (2020) Consumer privacy and the future of data-based innovation and marketing. Int J Res Mark 37(3):466–480CrossRef Bleier A, Goldfarb A, Tucker C (2020) Consumer privacy and the future of data-based innovation and marketing. Int J Res Mark 37(3):466–480CrossRef
5.
go back to reference Braun M, Moe WW (2013) Online display advertising: modeling the effects of multiple creatives and individual impression histories. Mark Sci 32(5):753–767CrossRef Braun M, Moe WW (2013) Online display advertising: modeling the effects of multiple creatives and individual impression histories. Mark Sci 32(5):753–767CrossRef
6.
go back to reference Bruce NI, Murthi B, Rao RC (2017) A dynamic model for digital advertising: the effects of creative format, message content, and targeting on engagement. J Mark Res 54(2):202–218CrossRef Bruce NI, Murthi B, Rao RC (2017) A dynamic model for digital advertising: the effects of creative format, message content, and targeting on engagement. J Mark Res 54(2):202–218CrossRef
9.
go back to reference Choi H, Mela CF, Balseiro SR, Leary A (2020) Online display advertising markets: a literature review and future directions. Inf Syst Res 31(2):556–575CrossRef Choi H, Mela CF, Balseiro SR, Leary A (2020) Online display advertising markets: a literature review and future directions. Inf Syst Res 31(2):556–575CrossRef
10.
go back to reference Danaher PJ (2017) Advertising effectiveness and media exposure. In Handbook of marketing decision models (pp. 463–481). Springer, Cham Danaher PJ (2017) Advertising effectiveness and media exposure. In Handbook of marketing decision models (pp. 463–481). Springer, Cham
11.
go back to reference Dinner IM, Heerde HJV, Neslin SA (2014) Driving online and offline sales: the cross-channel effects of traditional, online display, and paid search advertising. J Mark Res 51(5):527–545CrossRef Dinner IM, Heerde HJV, Neslin SA (2014) Driving online and offline sales: the cross-channel effects of traditional, online display, and paid search advertising. J Mark Res 51(5):527–545CrossRef
12.
go back to reference Draganska M, Hartmann WR, Stanglein G (2014) Internet versus television advertising: a brand-building comparison. J Mark Res 51:578–590CrossRef Draganska M, Hartmann WR, Stanglein G (2014) Internet versus television advertising: a brand-building comparison. J Mark Res 51:578–590CrossRef
14.
go back to reference Goldfarb A (2014) What is different about online advertising? Rev Ind Organ 44(2):115–129CrossRef Goldfarb A (2014) What is different about online advertising? Rev Ind Organ 44(2):115–129CrossRef
15.
go back to reference Goldfarb A, Tucker CE (2011) Privacy regulation and online advertising. Manage Sci 57(1):57–71CrossRef Goldfarb A, Tucker CE (2011) Privacy regulation and online advertising. Manage Sci 57(1):57–71CrossRef
18.
go back to reference Gordon BR, Zettelmeyer F, Bhargava N, Chapsky D (2019) A comparison of approaches to advertising measurement: evidence from big field experiments at Facebook. Mark Sci 38(2):193–225CrossRef Gordon BR, Zettelmeyer F, Bhargava N, Chapsky D (2019) A comparison of approaches to advertising measurement: evidence from big field experiments at Facebook. Mark Sci 38(2):193–225CrossRef
19.
go back to reference Gordon BR, Jerath K, Katona Z, Narayanan S, Shin J, Wilbur KC (2021) Inefficiencies in digital advertising markets. J Mark 85(1):7–25CrossRef Gordon BR, Jerath K, Katona Z, Narayanan S, Shin J, Wilbur KC (2021) Inefficiencies in digital advertising markets. J Mark 85(1):7–25CrossRef
21.
22.
go back to reference IAB Tech Lab (2021) Taxonomy and data transparency standards to support seller-defined audience and context signaling IAB Tech Lab (2021) Taxonomy and data transparency standards to support seller-defined audience and context signaling
25.
go back to reference Johnson GA, Shriver SK, Du S (2020) Consumer privacy choice in online advertising: who opts out and at what cost to industry? Mark Sci 39(1):33–51CrossRef Johnson GA, Shriver SK, Du S (2020) Consumer privacy choice in online advertising: who opts out and at what cost to industry? Mark Sci 39(1):33–51CrossRef
26.
go back to reference Lambrecht A, Tucker C (2013) When does retargeting work? Information specificity in online advertising. J Mark Res 50(5):561–576CrossRef Lambrecht A, Tucker C (2013) When does retargeting work? Information specificity in online advertising. J Mark Res 50(5):561–576CrossRef
28.
go back to reference Lewis R, Rao J (2015) The unfavorable economics of measuring the returns to advertising. Quart J Econ 130(4):1941–1973CrossRef Lewis R, Rao J (2015) The unfavorable economics of measuring the returns to advertising. Quart J Econ 130(4):1941–1973CrossRef
29.
go back to reference Lewis RA, Reiley DH (2014) Online ads and offline sales: measuring the effect of retail advertising via a controlled experiment on Yahoo! Quant Mark Econ 12(3):235–266CrossRef Lewis RA, Reiley DH (2014) Online ads and offline sales: measuring the effect of retail advertising via a controlled experiment on Yahoo! Quant Mark Econ 12(3):235–266CrossRef
30.
go back to reference Lewis RA, Wong J (2018) Incrementality bidding & attribution. Available at SSRN Lewis RA, Wong J (2018) Incrementality bidding & attribution. Available at SSRN
31.
go back to reference Li H, Kannan PK (2014) Attributing conversions in a multichannel online marketing environment: an empirical model and a field experiment. J Mark Res 51(1):40–56CrossRef Li H, Kannan PK (2014) Attributing conversions in a multichannel online marketing environment: an empirical model and a field experiment. J Mark Res 51(1):40–56CrossRef
33.
go back to reference Lin T, Misra S (2022) Frontiers: the identity fragmentation bias. Marketing Science, forthcoming Lin T, Misra S (2022) Frontiers: the identity fragmentation bias. Marketing Science, forthcoming
34.
go back to reference Lin X, Nair HS, Sahni NS, Waisman C (2019) Parallel experimentation in a competitive advertising marketplace. arXiv preprint arXiv:1903.11198 Lin X, Nair HS, Sahni NS, Waisman C (2019) Parallel experimentation in a competitive advertising marketplace. arXiv preprint arXiv:1903.11198
35.
go back to reference Neumann N, Tucker C, Whitfield T (2019) Frontiers: how effective is third-party consumer profiling? Evidence from field studies. Market Sci 38(6):918–926 Neumann N, Tucker C, Whitfield T (2019) Frontiers: how effective is third-party consumer profiling? Evidence from field studies. Market Sci 38(6):918–926
36.
go back to reference Rafieian O, Yoganarasimhan H (2021) Targeting and privacy in mobile advertising. Mark Sci 40(2):193–218CrossRef Rafieian O, Yoganarasimhan H (2021) Targeting and privacy in mobile advertising. Mark Sci 40(2):193–218CrossRef
39.
go back to reference Runge J, Geinitz S, Ejdemyr S (2020) Experimentation and performance in advertising: an observational survey of firm practices on Facebook. Expert Syst Appl 158:113554 Runge J, Geinitz S, Ejdemyr S (2020) Experimentation and performance in advertising: an observational survey of firm practices on Facebook. Expert Syst Appl 158:113554
40.
go back to reference Runge J, Nair H (2021) The role of randomized control trials in online demand generation: exploratory evidence from Facebook. Proceedings of the International Conference on Information Systems (ICIS) 2021 Runge J, Nair H (2021) The role of randomized control trials in online demand generation: exploratory evidence from Facebook. Proceedings of the International Conference on Information Systems (ICIS) 2021
41.
go back to reference Runge J, Seufert E (2021) Apple is changing how digital ads work. Are advertisers prepared? Harvard Business Review, digital article Runge J, Seufert E (2021) Apple is changing how digital ads work. Are advertisers prepared? Harvard Business Review, digital article
42.
go back to reference Sahni NS, Narayanan S, Kalyanam K (2019) An experimental investigation of the effects of retargeted advertising: the role of frequency and timing. J Mark Res 56(3):401–418CrossRef Sahni NS, Narayanan S, Kalyanam K (2019) An experimental investigation of the effects of retargeted advertising: the role of frequency and timing. J Mark Res 56(3):401–418CrossRef
43.
go back to reference Schwartz EM, Bradlow ET, Fader PS (2017) Customer acquisition via display advertising using multi-armed bandit experiments. Mark Sci 36(4):500–522CrossRef Schwartz EM, Bradlow ET, Fader PS (2017) Customer acquisition via display advertising using multi-armed bandit experiments. Mark Sci 36(4):500–522CrossRef
44.
go back to reference Seiler S, Yao S, Wang W (2017) Does online word of mouth increase demand? (and how?) evidence from a natural experiment. Mark Sci 36(6):838–861CrossRef Seiler S, Yao S, Wang W (2017) Does online word of mouth increase demand? (and how?) evidence from a natural experiment. Mark Sci 36(6):838–861CrossRef
48.
go back to reference Shapiro BT (2018) Positive spillovers and free riding in advertising of prescription pharmaceuticals: The case of antidepressants. J Polit Econ 126(1):381–437CrossRef Shapiro BT (2018) Positive spillovers and free riding in advertising of prescription pharmaceuticals: The case of antidepressants. J Polit Econ 126(1):381–437CrossRef
49.
go back to reference Simonov A, Hill S (2021) Competitive advertising on brand search: Traffic stealing and click quality. Mark Sci 40(5):923–945CrossRef Simonov A, Hill S (2021) Competitive advertising on brand search: Traffic stealing and click quality. Mark Sci 40(5):923–945CrossRef
51.
go back to reference Tucker CE (2012) The economics of advertising and privacy. Int J Ind Organ 30(3):326–329CrossRef Tucker CE (2012) The economics of advertising and privacy. Int J Ind Organ 30(3):326–329CrossRef
52.
go back to reference Urban GL, Liberali G, MacDonald E, Bordley R, Hauser JR (2013) Morphing banner advertising. Mark Sci 33(1):27–46CrossRef Urban GL, Liberali G, MacDonald E, Bordley R, Hauser JR (2013) Morphing banner advertising. Mark Sci 33(1):27–46CrossRef
54.
go back to reference Wieringa J, Kannan PK, Ma X, Reutterer T, Risselada H, Skiera B (2021) Data analytics in a privacy-concerned world. J Bus Res 122:915–925CrossRef Wieringa J, Kannan PK, Ma X, Reutterer T, Risselada H, Skiera B (2021) Data analytics in a privacy-concerned world. J Bus Res 122:915–925CrossRef
56.
go back to reference Zantedeschi D, Feit EM, Bradlow ET (2017) Measuring multichannel advertising response. Manage Sci 63(8):2706–2728CrossRef Zantedeschi D, Feit EM, Bradlow ET (2017) Measuring multichannel advertising response. Manage Sci 63(8):2706–2728CrossRef
Metadata
Title
Privacy-Centric Digital Advertising: Implications for Research
Authors
Garrett Johnson
Julian Runge
Eric Seufert
Publication date
30-03-2022
Publisher
Springer US
Published in
Customer Needs and Solutions / Issue 1-2/2022
Print ISSN: 2196-291X
Electronic ISSN: 2196-2928
DOI
https://doi.org/10.1007/s40547-022-00125-4