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- 1272 creator ayman-farahat.
- 1272 creator michael-bailey.
- 1272 type InProceedings.
- 1272 label "How Effective is Targeted Advertising?".
- 1272 sameAs 1272.
- 1272 abstract "Advertisers are demanding more accurate estimates of the impact of targeted advertisements, yet no study proposes an appropriate methodology to analyze the effectiveness of a targeted advertising campaign, and there is a dearth of empirical evidence on the effectiveness of targeted advertising as a whole. The advertiser will have more conversions from the targeted group even without advertising, so the difference in response between the targeted and untargeted group is an overestimate of the impact of targeted advertising. We propose a difference-in-differences estimator to account for this selection bias by decomposing the impact of targeting into selection bias and treatment effects components. Using several large-scale online advertising campaigns, we test the effectiveness of targeted advertising on brand-related searches and clickthrough rates. We find that the treatment effect on the targeted group is about twice as large for brand-related searches and that the median clickthrough rate lift is 37% for the targeted group; naively estimating these effects without taking into account the selection bias leads to an overestimation of the lift from targeting on brand-related searches by almost 1,000%.".
- 1272 hasAuthorList authorList.
- 1272 isPartOf proceedings.
- 1272 keyword "Economics".
- 1272 keyword "Experimentation".
- 1272 keyword "Measurement".
- 1272 title "How Effective is Targeted Advertising?".