How to Match Consumers with Advertisers? The Role of Targeting Breadth in Behaviorally Targeted Display Advertising
主讲人：Asst. Prof. Shijie Lu, University of Houston
主持人：陈熹 教授，浙江大学管理学院
时间：2018年7月27日（周五），上午11:00-12:00
地点：浙江大学紫金港校区行政楼1004会议室
摘要：
This research empirically investigates whether and how an advertising platform’s revenue is affected by the granularity in the user-ad match determined by the targeting breadth, in the context of behavioral-targeting-empowered display advertising. Targeting breadth is defined as the level of comprehensiveness of a consumer’s interests being used in constructing the set of potential advertisers who compete for the opportunity of ad exposure to the consumer. We develop a structural model to characterize consumers’ ad-clicking decisions, advertisers’ bidding behaviors, and the platform’s ad-serving algorithm, under a given rule of targeting breadth. We apply the model to a proprietary dataset provided by a large online advertising network. Through policy simulations, we find (i) targeting breadth has an inverted-U shaped relationship with the click-through rate; (ii) targeting breadth has an S-shaped relationship with the cost-per-click (i.e, first decrease, then increase and then decrease again); and (iii) the relationship between the targeting breadth and the platform’ revenue is highly-nonlinear with multiple peaks. Compared to the status quo, the platform’s revenue can be improved by 9.3% by optimizing the targeting breadth uniformly, and by another increase of 7.7% if customizing the targeting breadth individually.
主讲人简介：
Shijie Lu is an Assistant Professor of Marketing at the Bauer College of Business, University of Houston.
He is a quantitative marketing researcher. His research interests lie in Internet marketing with a focus on online advertising, online WOM, and user engagement in social media.
Several of his research has been published in Marketing Science. His dissertation won the INFORMS Society for Marketing Science doctoral dissertation proposal award and received honorable mention in the Marketing Science Institute’s Clayton competition award.
Dr. Lu received his Ph.D. in business administration from the University of Southern California, where he also earned a master’s degree in economics. He obtained B.S. in mathematics and B.A. in economics from the Peking University. He taught at University of North Carolina at Chapel Hill before.
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