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Inefficiencies in Digital Advertising Markets

  • Author(s): Gordon, Brett R
  • Jerath, Kinshuk
  • Katona, Zsolt
  • Narayanan, Sridhar
  • Shin, Jiwoong
  • Wilbur, Kenneth C
  • et al.
Abstract

Digital advertising markets are growing and attracting increased scrutiny. This article explores four market inefficiencies that remain poorly understood: ad effect measurement, frictions between and within advertising channel members, ad blocking, and ad fraud. Although these topics are not unique to digital advertising, each manifests in unique ways in markets for digital ads. The authors identify relevant findings in the academic literature, recent developments in practice, and promising topics for future research.

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