IDEAS home Printed from https://ideas.repec.org/a/spr/custns/v9y2022i1d10.1007_s40547-022-00125-4.html
   My bibliography  Save this article

Privacy-Centric Digital Advertising: Implications for Research

Author

Listed:
  • Garrett Johnson

    (Boston University)

  • Julian Runge

    (Duke University)

  • Eric Seufert

    (Mobile Dev Memo)

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.

Suggested Citation

  • Garrett Johnson & Julian Runge & Eric Seufert, 2022. "Privacy-Centric Digital Advertising: Implications for Research," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 9(1), pages 49-54, June.
    • Handle: RePEc:spr:custns:v:9:y:2022:i:1:d:10.1007_s40547-022-00125-4
    DOI: 10.1007/s40547-022-00125-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40547-022-00125-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40547-022-00125-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nico Neumann & Catherine E. Tucker & Timothy Whitfield, 2019. "Frontiers: How Effective Is Third-Party Consumer Profiling? Evidence from Field Studies," Marketing Science, INFORMS, vol. 38(6), pages 918-926, November.
    2. Eric M. Schwartz & Eric T. Bradlow & Peter S. Fader, 2017. "Customer Acquisition via Display Advertising Using Multi-Armed Bandit Experiments," Marketing Science, INFORMS, vol. 36(4), pages 500-522, July.
    3. Garrett A. Johnson & Scott K. Shriver & Shaoyin Du, 2020. "Consumer Privacy Choice in Online Advertising: Who Opts Out and at What Cost to Industry?," Marketing Science, INFORMS, vol. 39(1), pages 33-51, January.
    4. Wieringa, Jaap & Kannan, P.K. & Ma, Xiao & Reutterer, Thomas & Risselada, Hans & Skiera, Bernd, 2021. "Data analytics in a privacy-concerned world," Journal of Business Research, Elsevier, vol. 122(C), pages 915-925.
    5. Brett R. Gordon & Florian Zettelmeyer & Neha Bhargava & Dan Chapsky, 2019. "A Comparison of Approaches to Advertising Measurement: Evidence from Big Field Experiments at Facebook," Marketing Science, INFORMS, vol. 38(2), pages 193-225, March.
    6. Avi Goldfarb & Catherine E. Tucker, 2011. "Privacy Regulation and Online Advertising," Management Science, INFORMS, vol. 57(1), pages 57-71, January.
    7. Avi Goldfarb, 2014. "What is Different About Online Advertising?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(2), pages 115-129, March.
    8. Omid Rafieian & Hema Yoganarasimhan, 2021. "Targeting and Privacy in Mobile Advertising," Marketing Science, INFORMS, vol. 40(2), pages 193-218, March.
    9. Thomas Blake & Chris Nosko & Steven Tadelis, 2015. "Consumer Heterogeneity and Paid Search Effectiveness: A Large‐Scale Field Experiment," Econometrica, Econometric Society, vol. 83, pages 155-174, January.
    10. Daniel Zantedeschi & Eleanor McDonnell Feit & Eric T. Bradlow, 2017. "Measuring Multichannel Advertising Response," Management Science, INFORMS, vol. 63(8), pages 2706-2728, August.
    11. Alexander Bleier & Maik Eisenbeiss, 2015. "Personalized Online Advertising Effectiveness: The Interplay of What, When, and Where," Marketing Science, INFORMS, vol. 34(5), pages 669-688, September.
    12. Bleier, Alexander & Goldfarb, Avi & Tucker, Catherine, 2020. "Consumer privacy and the future of data-based innovation and marketing," International Journal of Research in Marketing, Elsevier, vol. 37(3), pages 466-480.
    13. Stephan Seiler & Song Yao & Wenbo Wang, 2017. "Does Online Word of Mouth Increase Demand? (And How?) Evidence from a Natural Experiment," Marketing Science, INFORMS, vol. 36(6), pages 838-861, November.
    14. Hana Choi & Carl F. Mela & Santiago R. Balseiro & Adam Leary, 2020. "Online Display Advertising Markets: A Literature Review and Future Directions," Information Systems Research, INFORMS, vol. 31(2), pages 556-575, June.
    15. Randall Lewis & David Reiley, 2014. "Online ads and offline sales: measuring the effect of retail advertising via a controlled experiment on Yahoo!," Quantitative Marketing and Economics (QME), Springer, vol. 12(3), pages 235-266, September.
    16. Bradley T. Shapiro, 2018. "Positive Spillovers and Free Riding in Advertising of Prescription Pharmaceuticals: The Case of Antidepressants," Journal of Political Economy, University of Chicago Press, vol. 126(1), pages 381-437.
    17. Peter J. Danaher, 2017. "Advertising Effectiveness and Media Exposure," International Series in Operations Research & Management Science, in: Berend Wierenga & Ralf van der Lans (ed.), Handbook of Marketing Decision Models, edition 2, chapter 0, pages 463-481, Springer.
    18. Michael Braun & Wendy W. Moe, 2013. "Online Display Advertising: Modeling the Effects of Multiple Creatives and Individual Impression Histories," Marketing Science, INFORMS, vol. 32(5), pages 753-767, September.
    19. Caio Waisman & Navdeep S. Sahni & Harikesh S. Nair & Xiliang Lin, 2019. "Parallel Experimentation and Competitive Interference on Online Advertising Platforms," Papers 1903.11198, arXiv.org, revised Feb 2024.
    20. Randall A. Lewis & Justin M. Rao, 2015. "The Unfavorable Economics of Measuring the Returns to Advertising," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(4), pages 1941-1973.
    21. Tucker, Catherine E., 2012. "The economics of advertising and privacy," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 326-329.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Garrett A. Johnson, 2022. "Economic Research on Privacy Regulation: Lessons from the GDPR and Beyond," NBER Chapters, in: The Economics of Privacy, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hana Choi & Carl F. Mela & Santiago R. Balseiro & Adam Leary, 2020. "Online Display Advertising Markets: A Literature Review and Future Directions," Information Systems Research, INFORMS, vol. 31(2), pages 556-575, June.
    2. Brett R Gordon & Kinshuk Jerath & Zsolt Katona & Sridhar Narayanan & Jiwoong Shin & Kenneth C Wilbur, 2019. "Inefficiencies in Digital Advertising Markets," Papers 1912.09012, arXiv.org, revised Feb 2020.
    3. Thomas W. Frick & Rodrigo Belo & Rahul Telang, 2023. "Incentive Misalignments in Programmatic Advertising: Evidence from a Randomized Field Experiment," Management Science, INFORMS, vol. 69(3), pages 1665-1686, March.
    4. Weijia Dai & Hyunjin Kim & Michael Luca, 2023. "Frontiers: Which Firms Gain from Digital Advertising? Evidence from a Field Experiment," Marketing Science, INFORMS, vol. 42(3), pages 429-439, May.
    5. Alexandre Chirat, 2022. "Consumer sovereignty in the digital society," EconomiX Working Papers 2022-25, University of Paris Nanterre, EconomiX.
    6. Jiwoong Shin & Jungju Yu, 2021. "Targeted Advertising and Consumer Inference," Marketing Science, INFORMS, vol. 40(5), pages 900-922, September.
    7. Stylianos Despotakis & Jungju Yu, 2023. "Multidimensional Targeting and Consumer Response," Management Science, INFORMS, vol. 69(8), pages 4518-4540, August.
    8. Randall Lewis & Dan Nguyen, 2015. "Display advertising’s competitive spillovers to consumer search," Quantitative Marketing and Economics (QME), Springer, vol. 13(2), pages 93-115, June.
    9. Susan Athey & Kristen Grabarz & Michael Luca & Nils Wernerfelt, 2023. "Digital public health interventions at scale: The impact of social media advertising on beliefs and outcomes related to COVID vaccines," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 120(5), pages 2208110120-, January.
    10. Caio Waisman & Navdeep S. Sahni & Harikesh S. Nair & Xiliang Lin, 2019. "Parallel Experimentation and Competitive Interference on Online Advertising Platforms," Papers 1903.11198, arXiv.org, revised Feb 2024.
    11. Jan Krämer & Daniel Schnurr & Michael Wohlfarth, 2019. "Winners, Losers, and Facebook: The Role of Social Logins in the Online Advertising Ecosystem," Management Science, INFORMS, vol. 65(4), pages 1678-1699, April.
    12. Randall Lewis & Justin M. Rao & David H. Reiley, 2015. "Measuring the Effects of Advertising: The Digital Frontier," NBER Chapters, in: Economic Analysis of the Digital Economy, pages 191-218, National Bureau of Economic Research, Inc.
    13. Susan Athey & Kristen Grabarz & Michael Luca & Nils Wernerfelt, 2022. "The Effectiveness of Digital Interventions on COVID-19 Attitudes and Beliefs," Papers 2206.10214, arXiv.org.
    14. Rex Yuxing Du & Mingyu Joo & Kenneth C. Wilbur, 2019. "Advertising and brand attitudes: Evidence from 575 brands over five years," Quantitative Marketing and Economics (QME), Springer, vol. 17(3), pages 257-323, September.
    15. Andre Veiga & Tommaso Valletti, 2020. "Attention, recall and purchase: Experimental evidence on online news and advertising," Working Papers 20-15, NET Institute.
    16. Rex Yuxing Du & Mingyu Joo & Kenneth C. Wilbur, 2018. "Advertising and Brand Attitudes: Evidence from 575 Brands over Five Years," Papers 1810.07783, arXiv.org.
    17. Rene Laub & Klaus M. Miller & Bernd Skiera, 2023. "The Economic Value of User Tracking for Publishers," Papers 2303.10906, arXiv.org.
    18. Veronica Marotta & Yue Wu & Kaifu Zhang & Alessandro Acquisti, 2022. "The Welfare Impact of Targeted Advertising Technologies," Information Systems Research, INFORMS, vol. 33(1), pages 131-151, March.
    19. Campbell, Colin & Runge, Julian & Bates, Kenneth & Haefele, Stacey & Jayaraman, Neeraj, 2022. "It’s time to close the experimentation gap in advertising: Confronting myths surrounding ad testing," Business Horizons, Elsevier, vol. 65(4), pages 437-446.
    20. Esther Gal-Or & Ronen Gal-Or & Nabita Penmetsa, 2018. "The Role of User Privacy Concerns in Shaping Competition Among Platforms," Information Systems Research, INFORMS, vol. 29(3), pages 698-722, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:custns:v:9:y:2022:i:1:d:10.1007_s40547-022-00125-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.