LemonAds: Impression quality in programmatic advertising

Research output: Chapter/Conference proceedingConference proceedingAcademicpeer-review

Abstract

The display advertising practice relies on the real-time exchange of large volumes of impressions. Advertisers and publishers typically carry out their transactions through Reservation contracts, Real Time Bidding (RTB), or a mixture of the two. The co-existence of multiple transaction methods is problematic since impression quality is difficult to assess. As such, the display advertising market is characterized by high uncertainty and asymmetric information. In this paper, we use viewability as a measure of impression quality and show how the co-existence of different transaction methods leads to allocation and pricing inefficiencies. Using bid-request level data from a European Demand Side Platform, we find that publishers who engage in both Reservation Contracts and RTB offer higher quality impressions through Reservation Contracts, while allocating the remaining lower quality impressions to RTB. We find that, by doing so, publishers can leverage on asymmetric information on impression quality to extract excess profit from advertisers.

Original languageEnglish
Title of host publication40th International Conference on Information Systems, ICIS 2019
Place of PublicationMunich, Germany
PublisherAssociation for Information Systems
ISBN (Electronic)9780996683197
Publication statusPublished - Dec 2019
Event40th International Conference on Information Systems, ICIS 2019 - Munich, Germany
Duration: 15 Dec 201918 Dec 2019

Publication series

Series40th International Conference on Information Systems, ICIS 2019

Conference

Conference40th International Conference on Information Systems, ICIS 2019
Country/TerritoryGermany
CityMunich
Period15/12/1918/12/19

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